China e-commerce exports, unreliable Red Sea shipping boost air cargo [Yahoo! Finance]
Alibaba Group Holding Limited American Depositary Shares each representing eight Ordinary share (BABA)
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Source: Yahoo! Finance
platforms, during a normally slow shipping period is creating high expectations among air carriers for peak season and making logistics providers nervous about securing adequate capacity. Air cargo demand has grown by double digits for four consecutive months, while rates have risen steadily since late February. The strength of the market rebound after a prolonged downturn that bottomed out last August has surprised industry watchers. But the recovery is not lifting all regions equally and can be partly attributed to a weak 2023 that makes the comparison look better. Primary factors driving growth in air cargo are poor ocean shipping reliability and Chinese e-commerce players like fast fashion dynamo Shein, and online markets Temu and Alibaba sucking up outbound capacity from China. Ever-growing demand for airlift by those B2C companies has Taiwan-based logistics provider Dimerco Express warning in a market update that capacity commitments for airlines operating from China and Hon
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