Degrowth

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.

[...]

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.