Chinese e-commerce giants Temu and Shein – both of which ship extensively to Australia – have reportedly been sending such high volumes of cargo to key markets around the world via airfreight, that they are now driving up prices of airfreight which is left with limited capacity to serve other customers. Together, Temu and Shein shipped around 9,000 tons of cargo worldwide every day, or approximately 88 Boeing 777 freighters filled to capacity, according to research from Cargo Facts Consulting in February. Temu mainly sells clothing and housewares, while Shein which started as a fast-fashion retailer and has since expanded to consumer electronics and kitchen items, primarily sell Chinese brands.
According to logistics analytics company Xeneta, the May air cargo “average spot rate” from southern China to the US was around about A$7.15 per kilogram, rivalling rates that are typically seen during peak periods such as the holiday season. While the May rates are still lower than the around A$15.
05 to A$18.06 rates witnessed during 2020 and 2021 where the pandemic had its most damaging effects on global supply chains, the current high prices in airfreight are believed to be mainly driven by Shein and Temu’s insatiable shipping volumes. Its not just shipments of Temu to countries such as the US, but also to the likes of Australia that is hurting local retailers.
As ChannelNews reported, Temu’s popularity is surging in Australia , with the Chinese online juggernaut shippin.