The ecommerce sector has been a driving force behind the growth of air cargo, according to reports from The Loadstar. However, Chinese ecommerce merchants are now facing concerns about potential restrictions on popular platforms such as Temu, Shein, and TikTok. Additionally, profit margins from the more established platform Amazon have seen a significant reduction.
Smaller merchants are also feeling the impact of large platforms driving up airfreight rates, as noted by a Shanghai-based ecommerce logistics manager. WorldACD reported a 2% to 3% rise in average global air cargo rates in recent weeks, which is considered unusual as air freight costs typically drop after the Chinese New Year holiday.
The logistics manager attributes this rise in prices to platforms like TikTok and Temu, which have gained popularity overseas and use chartered flights for their deliveries. Leading Chinese ecommerce platforms like Temu, Shein, Alibaba, and TikTok collectively ship over 10,000 tonnes a day, equivalent to 108 Boeing 777 freighters.
The manager expressed concerns about being unable to compete with these larger platforms due to their scale and resources, resulting in less cargo space available and increasing prices each week. Some clients are considering transitioning from traditional platforms like Amazon to Chinese platforms due to fierce competition and recent fee changes on Amazon.
However, the shift may not be a permanent solution, as growing international concerns over data risks, ethical standards, and taxation issues are putting the future of Chinese-owned online retailers in question. Investigations into counterfeit products and trade loopholes associated with major Chinese ecommerce platforms are being launched in countries like South Korea, the US, and France.
The logistics manager believes that while the scrutiny is not necessarily discrimination against Chinese ecommerce platforms, it is an effort to ensure all imported products meet legal and quality standards in each country. Sellers are now faced with a decision between the stability of platforms like Amazon and the potential risks associated with platforms like TikTok and Temu.
Many vendors are concerned about the mounting pressure on governments to regulate or even shut down these platforms, prompting a hesitancy to rely solely on them for sales. The future of Chinese ecommerce platforms remains uncertain as countries push for tighter regulations and possible sanctions.
