NEW YORK — As if apparel executives don’t have enough to worry about, between the shaky retail environment and uncertain effect on sourcing of the continuing SARS outbreak in Asia, now they’re facing another hike in the cost of...
NEW YORK — As if apparel executives don’t have enough to worry about, between the shaky retail environment and uncertain effect on sourcing of the continuing SARS outbreak in Asia, nowthey’re facing another hike in the cost of shipping goods from the Far East to the U.S. This month, most new contracts covering Pacific shipping take effect. And as some importers go down to the wire in their negotiations, the carriers are pushing for increases of $700 to $1,200 on each 40-foot container of cargo they transport. That represents a sizable chunk of the approximately $2,000 per trunk importers paid during the last contract period, though sources said many companies have talked down the proposed hikes and will pay a significantly smaller amount.
Since the shipping industry was reformed in the late Nineties, contract rates have been negotiated in secret between carriers and their customers.
As reported, the Transpacific Stabilization Agreement, a group of 14 major steamship companies handling the Pacific trade, had advised its members to seek increases of $700 for all-water service to the West Coast and $900 for service including intermodal transportation on to a distribution center. In addition, the TSA recommended a $300 peak-season surcharge for June 15 through Oct. 31.
That period is likely to be a time of particularly high congestion in shipping channels this year because the uncertainty about the economy and lackluster retail environment has many buyers delaying committing to fall orders. That, in turn, causes importers to push back their order dates, leaving shorter windows for delivery.
China’s explosive growth in the apparel business — U.S. imports of Chinese textiles and apparel were up 65.4 percent in the first quarter — has led to increased demand on Asian shipping. The TSA estimated in a statement that about 60 percent of the eastbound Pacific trade is headed to the U.S. from China.
The weak economy of the past few years has generally pushed down freight rates, though importers have had to bear surcharges due to higher fuel cost and war-risk charges due to higher insurance premiums for cargo traveling in the vicinity of the Mideast during the recent Iraqi conflict.
“Carriers are simply not being adequately compensated for the service provided,” said Albert A. Pierce, the TSA’s executive director.Despite some industry speculation to the contrary, a TSA spokesman denied that carriers intended to hike their rates on cargo out of Asia as a result of the SARS outbreak. The WHO has said that there is no evidence that the disease can be transmitted by lifeless cargo containers.
The members of the TSA, a descendant of the former Pacific shipping cartel that calls itself a “discussion forum,” are American President Lines, CMA-CMG, COSCO Container Lines, Evergreen Margin Corp., Hanjin Shipping Co., Hapag Lloyd Container Line, Hyundai Merchant Marnie Co., Kawasaki Kisen Kaisha, Maersk Sealand, Mitsui OSK Lines, Nippon Yusen Kaisha, Orient Overseas Container Line, P&O Nedlloyd and Yangming Marine.
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)