Increase in airline tickets
Have you noticed an increase in airline ticket prices lately? It is not just a question linked to seasonality, the increase in fuel prices and so on, but another hypothesis that may seem curious is becoming increasingly popular: it is the correlation between the prices of airline tickets and the well-known e-commerce sites. Chinese commerce, in particular Temu And Shein which is attracting more and more attention.
But what would be the link between the increase in airfares and these two online shopping platforms?
The surge in costs of flying, according to some experts, is partially due to Temu and Shein business operationstwo e-commerce giants that are transforming the global transport market air: in fact, on a daily basis, these platforms move a volume of goods equal to that of 88 Boeing 777s, contributing to the increase in transport rates. Despite this, companies continue to incur these costs to expand globally.
What is the effect of Shein and Temu on flight prices?
Niall van de Wouw, director of air freight at logistics company Xeneta, noted that just nine months ago Temu was unknown. Today, together with Shein, she has revolutionized global trade routes, causing a crisis in the air cargo sectoras reported by «Forbes».
Temu and Shein sell products directly manufactured by Chinese companies, bypassing intermediaries and well-known American brands, which allows them to maintain competitive prices. However, to ensure fast deliveries, these companies rely heavily on air freight, shipping around 9,000 tons of goods per day. This increase in demand has caused airfares to rise to almost unprecedented levels. For example, we think that as of May 2024, the average cost of air cargo from southern China to the United States was approximately 4.37 euros per kilogrammore than double compared to 2019.
The logistics sector’s response
Some logistics companies, such as Atlas Air, are increasing the number of flights to meet growing demand. Even airlines like Korean Air they are capitalizing on this trend, strengthening partnerships and increasing capacity on key routes.
In perspective of Christmas holidays then, the concern about growing demand increases. “If we are already at these levels in May, imagine what it will be like in September, October, November and December” asks Brian Bourke, commercial director of SEKO Logistics.
Therefore, the increase in airline ticket prices appears to be significantly influenced by the activity of Temu and Shein who are reshaping the global air transport market with their growing demand for fast shipping. Who knows, then, what will happen in the future, considering that these are continually growing markets.
