cross-posted from: https://lemmy.sdf.org/post/34669814
Air freight capacity between China and the U.S. dropped by almost a third after a tax-free exemption for low-value items out of China was removed this month, industry data showed, denting a significant revenue stream for Asia’s major airlines.
Air cargo carriers including Cathay Pacific, China Southern, Air China, and Korean Air have profited from booming volumes of e-commerce, led by fast-fashion retailers such as Shein and PDD Holdings’ Temu, flowing from China to the United States.
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Cargo makes up around a quarter of Cathay and Korean Air’s overall revenues. Cargo yields and revenues at a number of Asia’s airlines grew significantly faster than their passenger segments last year. Last year low-value e-commerce shipments - at 1.2 million tonnes - made up 55% of goods shipped from China to the United States by air, compared to just 5% in 2018, an Aevean analysis showed.
Buoyed by strong air freight demand out of Asia since the pandemic, freight majors like Hong Kong-based Cathay, Singapore Airlines, and Taiwan’s China Airlines have ordered large, new freighters for the busiest trade routes.
Chinese fast-fashion platform Shein to set up huge Vietnam warehouse in US tariff hedge, sources say
Fast-fashion online retailer Shein is leasing a huge warehouse in Vietnam, two people familiar with the deal told Reuters, its first in the country, in a move that could reduce its exposure to unpredictable U.S.-China trade tensions.
Shein, which was founded in China and sells products including $5 bike shorts and $18 sundresses, has agreed to lease nearly 15 hectares of industrial land for a warehouse near Ho Chi Minh City, Vietnam’s commercial and trading hub, the two sources said, declining to be identified because the information was not public …
Vietnam’s other exports to the U.S. face a 10% tariff until July when the levy would rise to 46% if Hanoi does not otherwise reach an agreement with the White House.