Air freight demand continues to outpace supply while recent popular retailers exacerbate the industry.

This article is written by Austin Garcia

Air freight has experienced a decline in capacity due to factors such as e-commerce giants Shien and Temu, the pandemic, and war in the west. These companies are causing significant costs for manufacturers worldwide, shipping nearly 600,000 packages daily to the U.S., creating capacity shortages and eliminating traditional off-peak seasons. TikTok Shop, the e-commerce arm of ByteDance, has also emerged as a major player in the shipping space due to the substantial volume of products directly from Chinese factories to consumers worldwide via air cargo.

Global expansion intensifies the pressure on air cargo capacity, with Temu disrupting traditional markets and reshaping consumer expectations. In Korea, Temu’s strategic marketing tactics have led to a tenfold increase in subscribers, while in Japan, its monthly user base reached 15.5 million in January 2024.

In the U.S., both companies have faced challenges with handling packages from Temu due to the sheer volume and packaging of their orders. The USPS has expressed difficulty in managing these bulky bags, and customers often hold the USPS responsible for theft. Shein has also experienced issues with packages getting stuck in transit and tracking status not progressing, causing frustration for customers.

The airfreight market is evolving due to the pandemic, global vaccination efforts, and economic conditions. Supply chain disruptions, like manufacturing delays in Asia, have caused fluctuations in air freight volumes and routes. As countries recover, the market is adapting by implementing safety measures, optimizing routes, and adjusting capacity. This dynamic market is influenced by various factors and continues to adapt to ongoing changes.

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