From Nasdaq Inc.:

The rapid rise of fast-fashion e-commerce retailers like Shein and Temu is leading to major competition for air cargo space, leading to capacity shortages, and rising air-freight costs from Asian hubs, according to industry sources.

These trendy retailers ship majority of their products directly from factories in China to the United States daily, boosting air-freight costs and causing capacity shortages.

The growing popularity of these e-commerce giants is squeezing out space for other industries on air freighters, causing longer-term capacity shortage concerns.

Shein and Temu are causing trade imbalance in air cargo transport, and may be pushing traditional long-term customers out of the market.

Shein and Temu are looking at alternatives due to high air freight costs, such as sea freight, opening warehouses outside of China and sending goods to US warehouses.

These e-commerce firms are also looking to secure more capacity directly from airlines and are even seeking to lease wide-body freighters.



Read more: FOCUS-Rise of fast-fashion Shein, Temu roils global air cargo industry