Shein, Temu and other e-commerce retailers are upending global air cargo industry

The rapid increase of quickly-trend e-commerce merchants these as Shein and Temu is upending the world air cargo industry, as they significantly vie for restricted air-cargo space to woo buyers with rapid shipping moments, marketplace sources say.

Shein, PDD Group’s Temu and ByteDance’s TikTok Store, which not too long ago launched online buying in the U.S., ship the bulk of their solutions straight from factories in China to consumers by air in individually addressed packages.

Shein and Temu collectively ship almost 600,000 deals to the United States each individual day, according to a June 2023 report by the U.S. Congress, and their rising recognition is boosting air-freight charges from Asian hubs like Guangzhou and Hong Kong, creating off-peak seasons practically vanish and producing capability shortages, the sources reported.

“The greatest development impacting air freight appropriate now is not the Purple Sea, it can be Chinese e-commerce companies like Shein or Temu,” explained Basile Ricard, director of Greater China operations at freight forwarder Bollore Logistics.

According to details aggregated by Cargo Specifics Consulting, Temu ships about 4,000 tonnes a working day, Shein 5,000 tonnes, 1,000 tonnes and TikTok 800 tonnes. That equates to all-around 108 Boeing 777 freighters a day, the consultancy stated.

Driven by sturdy desire for their minimal-priced apparel — like $10 Cdn tops and $5 biker shorts — Shein on your own accounts for a person-fifth of the international rapidly-manner marketplace, calculated by revenue, and has fuelled development of China’s e-commerce field, in accordance to Coresight Study.

CBC News has arrived at out to Shein and Temu for remark.

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