With the peak season approaching does Airfreight have the capacity to cope with the increase of TikTok shops?

With the ongoing shipping crises in the Red Sea and the increase in E-commerce, It is starting to look like the Airfreight sector may start struggling with its capacity in the lead up to Christmas. 

According to Air Cargo news, since October 2023, more than 75 cargo ships have been attacked by Houthi rebels in the Red Sea. Since this has happened the shippers have been forced to use alternative routes, increasing time scales by 9% and prices going up due to the increase In fuel, time and resources. 12% of all global trade traditionally uses this route via the Suez Canal and since the problems started, some shipping companies have been using the alternative routes- for example the Cape of Good Hope.

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With no end in sight for the situation in the Red Sea, many shippers are not happy to take that risk and use that route to move their goods. With this in mind and the congestion in Baltimore caused by the Harbour bridge collapse, many people are taking the opportunity to use Airfreight and the operators can take advantage of increased demand and deliver for businesses needing a guaranteed delivery time.

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There is speculation that the increase in Airfreight services is also down to the Chinese fast fashion retailers which use TikTok, Instagram and other social channels to promote their goods. Their customers demand an almost instant delivery service which airfreight can deliver and, despite limited air cargo space, these brands are prepared to pay to ensure quick transit times. Shipping directly from their factories in China to the customers they are saving the need for warehousing operations.  

Did you know that fast fashion now accounts for half of China’s total external e-commerce shipments? The growth of these online retailers could soon take up all the spare airfreight capacity, which could be a problem if the Red Sea situation persists towards  Christmas.

Some Airfreight carriers have increased their charter capacity to meet these needs, however with Christmas approaching it is unclear whether the volumes can be sustained.

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Get in touch with the team to find out more.