BRUSSELS — October 11, 2021 — Latest economic data confirm further recovery of the textile and clothing industry. This recovery may however be disrupted by the current supply chain and energy problems.

Latest economic data on the European T&C industry confirm further recovery from the corona pandemic. The textile activity has now surpassed its pre-pandemic level from Q4 2019 (+3.6 percent); the clothing sector still remains 11.5 percent below, but continues to improve.

In quarter-on-quarter terms, the EU turnover showed signs of improvements across the sector. The textile turnover increased by +3.3 percent in Q2 2021, after slightly contracting in Q1 2021. Similarly, the business activity in the clothing sector expanded by +7 percent in Q2 2021, after increasing by +1 percent in the previous quarter.

In the 2nd quarter 2021, the EU-27 trade balance for T&C improved, resulting mostly from an increase of export sales across third markets and a drop of textile imports. T&C Extra-EU exports boomed by +49 percent as compared with the same quarter of the previous year. T&C Extra-EU imports went down by -26 percent as compared with the same quarter of the previous year, following a decrease of imports from some main supplier countries. EU imports from China and the UK collapsed due to a combination of Brexit and weaker demand in Europe.

During the second quarter of 2021, job creation was slowly stabilizing in the textile industry (-0.2 percent q-o-q), while employment in the clothing sector continued to be affected by lower levels of production activity in industry during the first part of the year (-1.2 percent). When compared to its pre-pandemic level in Q4 2019, EU employment in Q2 2021 was still 4.4 percent down in textiles and 11.8 percent down in clothing.

However, this fragile recovery is hampered by higher shipping costs and prices’ increase in raw materials and energy. The cost of energy, in particular gas, has increased more than 3 times since the beginning of this year. Since the announcement of the EU’s “Fit for 55” package, we have seen CO2 prices rising above 60 euros. This inevitably has an impact on the industry’s competitiveness, especially in a global context. The future recovery is also threatened by some factors limiting production, such as shortage of labour force and equipment, which are putting additional pressure on T&C industries.

Director General Dirk Vantyghem commented on these latest figures: “Our companies have shown great resilience during the pandemic, and their latest export performance is an encouraging sign of recovery. This recovery may however be disrupted by the current supply chain and energy problems. Once again, recent developments show that this transition towards more sustainable production can only work if organised in a global context, avoiding carbon leakage and with an effective level playing field. This must be considered in the upcoming EU Textiles Strategy.”

Posted October 11, 2021

Source: EURATEX

WASHINGTON — October 6, 2021 — Imports at the nation’s largest retail container ports should remain at near-record levels this month but could see a slight dip from last year’s unusually high numbers as congestion slows the movement of backed-up cargo, according to the monthly Global Port Tracker report released today by the National Retail Federation and Hackett Associates.

“The cargo is there for larger gains at several ports but congestion issues are impacting fluid operations,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. “Ships will eventually get unloaded but the pressure is on for everyone to work together to get the containers out as quickly as possible. Retailers are doing whatever it takes to make sure shelves are well-stocked for the holidays, from bringing in merchandise earlier to chartering their own ships. Consumers should be able to find what they need, but it’s always safer to shop early than wait until the last minute.”

“Just when we thought things couldn’t get any worse with the logistics supply chain, we’ve been proven wrong,” Hackett Associates Founder Ben Hackett said. “From power outages and port shutdowns in Asia to backed-up ships and shortages of truck drivers in the United States, there are few positive signs that the movement of consumer goods or the supply of inputs needed for industrial production is getting better.”

Hackett said COVID-19 infections in Asia have slowed the loading of U.S.-bound ships, while shortages of equipment, labor and outbound truck and rail capacity have continued to build congestion at U.S. ports. Close to 75 ships were waiting at anchor to enter the Ports of Los Angeles and Long Beach recently, up from around 25 a month earlier, and backups are spreading to East Coast ports as well.

U.S. ports covered by Global Port Tracker handled 2.27 million Twenty-Foot Equivalent Units in August, the latest month for which final numbers are available. That was up 3.5 percent from July and up 7.8 percent from a year earlier and tied March as the second-busiest month since NRF began tracking imports in 2002. May remains the busiest month on record at 2.33 million TEU. A TEU is one 20-foot container or its equivalent.

Ports have not reported September numbers yet, but Global Port Tracker projected the month at 2.25 million TEU, which would be up 6.7 percent year-over-year.

October is forecast at 2.21 million TEU. That would be down 0.3 percent from the same time last year, when imports surged dramatically as the economy reopened after the first wave of COVID-19 and retailers rushed to meet pent-up consumer demand, but still the sixth-busiest month on record as imports remain high. The year-over-year decline would be the first since July 2020.

The congestion and disruption come in the middle of the “peak season” for shipping when retailers stock up on holiday merchandise each year, but many retailers began bringing in holiday goods this summer to be sure sufficient inventory will be available.

November is forecast at 2.16 million TEU, which would be up 2.9 percent year-over-year, and December is forecast at 2.1 million TEU, down 0.2 percent. January 2022 is forecast at 2.17 million TEU, up 5.7 percent from January 2021, and February 2022 is forecast at 1.9 million TEU, up 1.4 percent year-over-year.

The first half of 2021 totaled 12.8 million TEU, up 35.6 percent from the same period last year. For the full year, 2021 is on track to total 26 million TEU, up 18.1 percent over 2020 and a new annual record topping last year’s 22 million TEU. Cargo imports during 2020 were up 1.9 percent over 2019 despite the pandemic.

Global Port Tracker, which is produced for NRF by Hackett Associates, provides historical data and forecasts for the U.S. ports of Los Angeles/Long Beach, Oakland, Seattle and Tacoma on the West Coast; New York/New Jersey, Port of Virginia, Charleston, Savannah, Port Everglades, Miami and Jacksonville on the East Coast, and Houston on the Gulf Coast. The report is free to NRF retail members, and subscription information is available at NRF.com/PortTracker

Posted October 7, 2021

Source: The National Retail Federation (NRF)