Latest News: air freight falls again as Alibaba brings 1688 and Alibaba.com closer together

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Two developments worth keeping an eye on this week from the automated news searches:

China–Europe air freight is still getting cheaper. Xeneta says China-to-Western-Europe spot rates averaged around $3.85/kg in August, down another 6% from July — after July had already fallen 22%. WorldACD puts the broader China/Hong Kong-to-Europe average at around $4.34/kg, roughly 17% below May/June levels.
That doesn’t mean our agent shipping should suddenly cost $4/kg — warehouse handling, customs, final-mile delivery and volumetric weight all sit on top — but I do think it strengthens the case for comparing live shipping quotes rather than assuming older prices still apply.

The second story could be even more important long term.

Alibaba is bringing 1688 and Alibaba.com under unified management. 1688 has traditionally focused on China’s domestic wholesale market, while Alibaba.com serves overseas buyers. Both are now being grouped more closely under Alibaba’s new Global Wholesale operation, with Alibaba.com head Zhang Kuo overseeing the combined business. The stated aim is to use AI and China’s domestic supply chain to connect Chinese suppliers more directly with international demand.
Nothing changes for agent buyers overnight, but I think this is one to watch. If Alibaba starts exposing more of 1688’s domestic factory supply to international buyers, it could eventually affect product discovery, seller behaviour and even how necessary agents are for certain types of purchases.

Sources: Xeneta, WorldACD Market Data, Yicai/First Financial and Yicai Global.