You just had to have that $5 top, didn’t you. Well done, you’ve helped to break the global air cargo industry. Demand for air freight from Chinese retailers like Shein and Temu is currently a bigger problem than the Red Sea attacks. But I’m sure the top looks great on you.

The lowdown

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Shein and Temu are roiling the global air cargo industry

“The biggest trend impacting air freight right now is not the Red Sea, it’s Chinese e-commerce companies like Shein or Temu.”

That’s the line from freight forwarder Bollore Logistics. Fast-fashion e-commerce retailers are upending the global air cargo industry as they compete for limited space amid surging demand from US shoppers.

Shein, Temu, and TikTok Shop, ship most of their products directly from factories in China. Every day Shein ships 5,000 tonnes, Temu 4,000 tonnes, Alibaba 1,000 tonnes, and TikTok 800 tonnes, according to Cargo Facts Consulting. That’s about 108 Boeing 777 freighters a day. The demand is boosting air-freight costs from hubs like Guangzhou and Hong Kong, making off-peak seasons almost disappear and causing capacity shortages.

The American scramble for cheap clothing has seen Shein outpace its Western rivals. The company accounted for nearly one-fifth of the global fast-fashion market in 2022, outpacing Zara and H&M, according to Coresight Research.

The content we're consuming today

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Off-balance sheet items

• Go ahead and crack your knuckles. It’s absolutely harmless.

The bottom line