INTERNATIONAL
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The UGC has directed the institutions imparting textile education to develop a curriculum for technical textiles. This directive has been issued as part of the National Textiles Mission, an initiative by Ministry of Textiles which aims to promote the technical textiles sector. The Textile Ministry has also issued ‘General guidelines for enabling of academic institutes in Technical Textiles’. The ministry will fund the HEIs to upgrade the labs and train the faculty to teach the subject. New courses on technical textiles will help students to boost their productivity in textiles industry, increase exports and sustainability.
Increasing demand Technical textiles are engineered products with a definite functionality, which finds its use in industries such as automobiles, construction, healthcare, and geotextiles and more. In addition to this, there also exists a domain of smart textiles and such textile material can be used to make clothes that get adjusted as per the environmental and climatic conditions. Smart textiles can be used in designing the special clothing for the army personnel deployed in adverse climatic zones. As part of pursuing a course on technical textiles, students would be introduced to the concept of geotextiles. This type of textile material is used in providing the proper layering to roads which is essential to prevent the water seepage. The institutes will introduce short courses offering credit of 1-2, at the UG and PG level. Engineering, Design, and Fashion Technology students are eligible for the courses.
Offering practical training As per reports, the government has allotted a financial outlay of Rs, 1,480 crore for 2020-21 to 2023 -24 academic session to implement the National Textiles Mission. The course is being introduced with the aim to promote technical textiles. The government has announced four components — Research, Innovation and Development; Promotion and Market Development; Export Promotion and Education Training, and Skill Development, under education, training and skill development measures for promotion of technical textiles. Speaking to Education Times, SR Shah, head, department of Textile Chemistry, Maharaja Sayajirao University, Vadodara, says, “We would modify the existing curriculum of textile streams and include the concepts of technical textiles for textile processing technology and other functional textile courses. In addition to this, we are in the process of starting short-term courses on technical textiles once they get approval from the governing body of our university,” says Shah. “The curriculum for these short-term courses would be decided by the expert committee of our department,” he adds. The chemical modification of textile eventually enhances its usability. For instance, if cotton produced genetically acquires antimicrobial and absorbency properties, it becomes usable in the healthcare sector. The aim is to equip the students in chemical processing to increase the utility. “Textile Engineering and Chemical textile students will have to study 60% theory and 40% of practical work, based on the revised curriculum,” adds Shah. Gujarat and several other southern states are a hub of textile industries. The new courses in the textile sector will boost productivity and sustainability by skilling the students. Elangovan N, former director, NIFT Kannur (Kerala), says, “There is an urgent need to develop the curricula relating to technical textiles in the institutes that are located around the textile hubs of the country as students residing in these areas need to be skilled in this domain. It is also essential to upskill students in this emerging domain as the industry needs technically skilled manpower. The technical textiles should have been in focus much earlier. Students also need to be motivated to pursue courses related to technical textiles as it is an emerging field.”
Source: Times of India
As part of the Make in India initiative, the Central government has announced plans to set up seven mega textile parks in the country. Announced under the PM Mega Integrated Textile Regions and Apparel (PM MITRA) scheme, the seven plants will be set up in Tamil Nadu, Telangana, Karnataka, Maharashtra, Gujarat, Madhya Pradesh and Uttar Pradesh. PM Mitra scheme was launched in October 2021 with a total outlay of INR 4,445 crore, and the initial allocation for the project in the 2023-24 budget is INR 200 crore In a series of tweets on March 17, PM Modi had explained “The PM MITRA mega textile parks will provide state-of-the-art infrastructure for the textiles sector, attracts investment of crores and create lakhs of jobs. It will be a great example of 'Make in India' and 'Make For the World." Union Minister Piyush Goyal says the government envisages investing almost ₹70,000 crores in the parks with a goal of generating almost 20 lakh jobs. “The textile industry has been unorganised in the country. This increased wastage and logistical costs impacted the competitiveness of the country's textile sector. This cluster-based approach, a vision of the Prime Minister, will solve several problems of the sector" news agency ANI quoted the minister as saying. Talking about the eligibility for selecting the seven sites, Textiles Secretary Rachna Shah said that her ministry had selected the locations in a transparent manner after considering 18 proposals from 13 states. The eligibility of the sites to be selected for the seven textile parks was determined through a transparent challenge. This challenge was based on objective criteria, which considered several factors, such as connectivity, the existing ecosystem, textiles, industry policy, infrastructure, utility services, and more. In addition, the PM Gati Shakti- National Master Plan for Multi-modal Connectivity was also utilized to validate the eligibility of the selected locations. The PM MITRA Parks scheme is a unique model that involves collaboration between the Central and State Governments in a bid to enhance investment, promote innovation, generate employment, and ultimately transform India into a signicant hub for textile production and exports.
Source: Live mint
Union minister of state for textiles, Darshana Jardosh, on Saturday said that the textile sector may get a new scheme to replace the Technology Upgradation Fund (TUF) scheme, after proper consideration. Interacting with 76 associations of the textile industry at the GCCI Textile Leadership Conclave on Saturday, Jardosh said the government is taking measures to raise cotton yield. She also said that new PM Mitra parks will help India become a leader in the textile industry. Jardosh said, “The central government is taking initiatives for development of the textile sector, which is the second biggest employment provider after agriculture. There were many glitches in the old TUF scheme which came into effect before 2014. Our government has resolved a number of cases from the old TUF scheme but about 1,500 cases are still pending. The TUF scheme ended in March 2022 and it cannot be reintroduced till these cases are resolved. Industry should provide suggestions for a new scheme and we will think them over.” She added that the central government announced production-linked incentives (PLI) for the textile sector and seven PM Mega Integrated Textile Region and Apparel Parks (PM MITRA) are being set up in various states including Gujarat. “We are working to increase cotton yield. Technical textiles are a huge opportunity and we will see growth in this segment,” she said.
Source: Times of India
Commerce and Industry Minister Piyush Goyal will hold a series of meetings with leaders and top CEOs of France and Italy next week during his three-day visit to these two countries to further boost trade and investment ties. The minister will be on an official visit to France (Paris) and Italy (Rome) on April 11-13. He will be accompanied by a delegation of top Indian CEOs. In France, Goyal along with Olivier Becht, Minister delegate of Foreign Trade, Attractiveness and French Nationals Abroad, Government of France, will cochair the India-France Business Summit on April 11, the commerce ministry said in a statement on Sunday. The summit will focus on various themes, including building a green future, emerging technologies, defence cooperation and cooperation in the IndoPacific regions, it added. Goyal is also scheduled to meet with French business leaders across various sectors and will attend a CEOs roundtable. Both Indian and French ministers will participate in an event that will showcase India's cultural heritage and soft power and are expected to witness the participation of over 600 dignitaries from the French government, the Indian business diaspora in France and members of the French business community. Goyal will also be interacting with members of the Indian community in Paris. In Rome, the statement said, Goyal would meet Antonio Tajani, Deputy Prime Minister and Minister of Foreign Affairs and International Cooperation. "He is scheduled to meet top Italian CEOs for bilateral meetings followed by CEOs Interactive Business Session, where 35 CEOs are likely to participate," the ministry said, adding this would be followed by a meeting with Adolfo Urso, Minister of Enterprises and Made in Italy, who would also interact with Indian CEOs. There are over 1,000 French businesses in India in different sectors, such as defence, ITES, consulting, engineering services, and heavy industry. France is the 11th largest foreign investor in India, with a cumulative FDI of USD 10.5 billion between April 2000 and December 2022. It accounts for about 1.7 per cent of the total FDI (USD 625.3 billion) that India has received during the period. India-France bilateral trade stood at USD 12.42 billion in 2021-22. During April-January 2022-23, India's exports to France stood at USD 6.5 billion, while imports aggregated at USD 4.36 billion. The trade gap is in favour of India. In 2021, a dedicated desk was set up by Invest India for investor queries for French businesses. Italy is among India's top 5 trading partners in the EUimports aggregated at USD 4.6 billion. The trade gap is in favour of India. Italy is the 17th largest foreign investor in India, with a cumulative FDI of USD 3.25 billion between April 2000 and December 2022. It accounts for about 0.52 per cent of the total FDI India received during the period. The main items of Indian exports to Italy are ready-made garments, leather, iron ore, motor vehicles, textiles, chemicals, gems and jewellery. Main imported items include machinery, machine tools, metallurgical products and engineering items. Around 140 large Italian companies are active in India. Some of the major Italian companies that have invested in India are FIAT Auto, Heinz Italia, Italcementi, Necchi Compressori, Perfetti, Lavazza, ENI, SAI India, Isagro (Asia) Agrochemicals and Piaggio. Indian companies present in Italy are in sectors such as IT, electronics, pharmaceuticals, automobile, textile and engineering. The prominent Indian companies operating in Italy include Tata, TCS, Wipro, Engineers India Limited, L&T, Mahindra & Mahindra, Ranbaxy, and Raymonds. SBI has a representative office in Milan. Six Italian banks have representation in India. The top sectors attracting FDI inflows from Italy are the automobile industry/ transportation, food processing, metallurgical industry, textiles, electrical equipment and others.
Source: Economic Times
The Centre has selected sites in Tamil Nadu, Telangana, Karnataka, Maharashtra, Gujarat, Madhya Pradesh and Uttar Pradesh to set up new textile parks, a year and a half after the PM Mega Integrated Textile Regions and Apparel (PM MITRA) scheme was announced. Listing the seven selected States in a tweet on Friday, Prime Minister Narendra Modi said that the parks would “provide state-of-the-art infrastructure for the textiles sector, attract investment of crores and create lakhs of jobs”. The scheme was announced in October 2021, and the parks will be set up by 2026-27. The total outlay for the project is ₹4,445 crore, though the intial allocation in the 2023-24 Budget is only ₹200 crore. The PM MITRA mega textile parks will provide state-of-the-art infrastructure for the textiles sector, attracts investment of crores and create lakhs of jobs. It will be a great example of 'Make in India' and 'Make For the World.' #PragatiKaPMMitra — Narendra Modi (@narendramodi) March 17, 2023 PM MITRA mega textile parks will boost the textiles sector in line with 5F (Farm to Fibre to Factory to Fashion to Foreign) vision. Glad to share that PM MITRA mega textile parks would be set up in Tamil Nadu, Telangana, Karnataka, Maharashtra, Gujarat, MP and UP. — Narendra Modi (@narendramodi) March 17, 2023 “PM MITRA mega textile parks will boost the textiles sector in line with 5F (Farm to Fibre to Factory to Fashion to Foreign) vision,” Mr. Modi tweeted, adding that the scheme would be a great example of the government’s policy of ‘Make in India’ and ‘Make for the World’.
Integrated value chain The Centre envisages an investment of nearly ₹70,000 crore into these parks, with employment generation for about 20 lakh people, Textiles Minister Piyush Goyal told reporters. The parks will function as centres of opportunity to create an integrated textiles value chain, right from spinning, weaving, processing, dyeing and printing to garment manufacturing, all at a single location.
“The textile industry has been unorganised in the country. This increased wastage and logistical costs impacting the competitiveness of country’s textile sector. This cluster-based approach, a vision of the Prime Minister, will solve several problems of the sector,” Mr. Goyal said. He added that environmental clearances would also be eased under the scheme. Textiles Secretary Rachna Shah said that the Ministry had selected the locations for the parks in a transparent manner, having considered 18 proposals from 13 States.
Centre-State collaboration Mr. Goyal hoped that the proposed world-class industrial infrastructure would attract cutting edge technology and boost foreign direct investment and local investment in the sector. The Textiles Ministry will oversee the execution of projects in the PM MITRA parks, according to an official statement. Also read:Kishan Reddy thanks PM for textile park “An SPV [Special Purpose Vehicle] owned by Centre and State Government will be set up for each park which will oversee the implementation of the project. The Ministry of Textiles will provide financial support in the form of Development Capital Support upto ₹500 crore per park to the Park SPV,” the Ministry said. A Competitive Incentive Support (CIS) upto ₹300 crore per park to the units in PM MITRA Park shall also be provided to incentivise speedy implementation. Convergence with other Government of India schemes shall also be facilitated in order to ensure additional incentives to the Master Developer and investor units,” added the statement. Mr. Goyal said that State governments have offered to provide at least 1,000 acres of land for free for the parks and will also facilitate provision of all utilities such as power and water. He said that ₹200 crore has been allotted as an initial investment. “Different elements to make all the approvals easier will be considered. We will encourage use of renewable energy in a big way in these parks,” Mr. Goyal said, adding that the parks would offer excellent infrastructure, plug-and-play facilities as well as training and research facilities for the industry. “PM MITRA Parks represent a unique model where the Centre and State Governments will work together to increase investment, promote innovation, create job opportunities and ultimately make India a global hub for textile manufacturing and exports,” the Ministry added.
Source: The Hindu
The contribution of MSMEs has been central to India’s growth. They contribute 29 per cent to the GDP, 45 per cent of the total manufacturing output, accounting for 40% (but declining) of exports. Sixty million units (a third are rural based) employ about 120 million. They boost consumption, drive economic growth, and equally contribute to social mobility. ‘Small not beautiful’ - 98% are micro-units, most destined to remain so They continue to suffer multi-faceted challenges. The regulatory framework is overly complex. The cost of compliance is high. Harassment is rampant. Access to adequate, timely and cost of credit is the weakest link. These are well known and well documented. But there is more. The productivity of micro firms (less than 10 people) is half that of medium firms (50-250 people) in most cases. The Crux study across 7000 MSMEs, 450 bankers, enablers, clients, and other stakeholders in 7 industrial clusters highlights several other challenges, less known, below the radar, and less ‘felt’. Yet equally value depreciating. Only a small fraction has the ability to attract talent, adopt technology, access markets, and apply productive processes. This hurts competitiveness. Limited access to appropriate technology, equally the ability to acquire is detrimental to productivity. The MSMEs pay a high proportion of their revenue on ‘non-core’ activities. The administrative and ‘maneuvering’ cost of an MSME is about twice that of a larger organization. The ‘ease of doing business’ framework hasn’t percolated to the MSMEs. Scale & size hinders any meaningful investment in productivity tools, perpetuating over 99% of the MSMEs into the low productivity-subscale vicious competitiveness cycle. The Crux study articulates productivity is key to competitiveness. It insights a 30% increase in productivity can propel the ‘small into the ‘medium’ league in 4 years. Similarly, 10% of the micro will leapfrog into the ‘small’ category. This could increase GDP growth rate by a third. Formalization. Without a safety net, and the growth ‘fuel’ a real threat. India has the largest share of micro-enterprises among MSMEs compared to other large industrial economies. The frailty of the Indian economy can be attributed to the missing ‘middle’. The MSMEs have neither the heft nor the competitiveness to add value to the larger corporates. A thriving MSME ecosystem, and the backward-forward symbiotic relationship will make the corporate sector more competitive and enhance value. MSMEs are not mere ‘vendors’. The ‘development’ of the MSMEs is in the interest of the larger corporates. It has an even bigger role to play. They shy away. It must invest & partner; mentor and coach on best practices. Joint R&D can be equally symbiotic. The cost of MSMEs failing is difficult to fathom, but ripple across the ecosystem. There are lessons plenty for the economic ecosystem.
Not a monolith. Each sector has unique value drivers 98 per cent of the estimated sixty million will never grow beyond micro-enterprises. Crux study has several lessons. Most MSMEs (even the larger amongst them) have limited aspirations, fewer means. Micro units are tied to low productivity and lower competitiveness. It’s a vicious cycle. Compliance and regulatory ecosystem only add to the challenge. The labor law (trade union law, Factories Act) makes no distinction between fifty thousand people company or a ten. The complex regulatory environment and the cost associated disincentivises growth. This rippling effect hurts the economy. A good example is the ‘Maharashtra’s New Industrial Belt’, closely ‘linked’ to India's financial, commercial capital, home to IT, pharmaceuticals, textiles, and consumer durable units. It accounts for 5% of India's GDP, and 70% of capital transactions. It boasts of India's largest container port, and yet 95% of the small & medium enterprises have not been able to scale optimally. Only a fraction is globally competitive. Sample this. Over three fourth of the units are ‘micro’ in Tirupur India’s largest textile cluster. Over 80% of the units in Narayanganj Bangladesh have more than ten, making their exports more competitiveness. The ‘Gurugram-Manesar-Bawal’ belt is the largest automobile ecosystem, accounting for half of 4-wheeler manufacturing, and home to a million MSMEs. And yet only a handful may ever scale enough to enhance competitiveness of the larger firms. China owes its rise as an industrial powerhouse to the large coastal SEZs, liberalized regulations, tax benefits and dutyfree imports. The millions of village enterprises (MSMEs) played an equally pivotal role. The thriving community of small enterprises enhanced the competitiveness of the larger organizations and laid the foundation for a sustainable industrial structure. It took 20 years. Similarly, MSMEs are the heart of the German industries’ (and economy) competitiveness.
MSMEs are neither resilient, nor thriving. ‘Start small, will remain small’ MSME policy and institutional framework have failed to identify and address the challenge of competitiveness. Value drivers are determined at three, and interconnected levels i.e., firm, business ecosystem, and economic environment. Our approach has been transactional; offering support, inducing schemes. However, on the ground, support eludes them. The study articulates that only the top decile ‘medium’ and top 3 per cent ‘small’ amongst the MSMEs is competitive to create a sustainable growth trajectory. Less than 2 per cent of the MSMEs are able to ‘build’ capital for expansion. Most others stagnate. The government needs to make bold policy moves. MSMEs are ‘micro and fragmented’. Ecosystem restricts growth. Capacity limits economies of scale. The government needs an innovative approach, go beyond, and create and establish a robust, ‘digital platform’ that promotes, incentivizes, fuels collaboration. The platform partners could harness and catalyze the benefits of a united approach to production, marketing, and R&D. Digital aggregator will help build competitiveness The platform can gather contextual data. ‘Link’ MSMEs to the relevant stakeholders to serve most needs of the sector. It can access sales and credit-performance data to develop credit scores and share with lenders. The platform could connect MSMEs to both the markets and suppliers. It could secure and ‘guarantee’ for them. It can tie up their logistics needs. It would link them to the auxiliary service providers that could train & coach, audit, provide legal advice and help them gather catalyze, exploit business related and contextual information& knowhow.
Source: Business World
Chemicals major GHCL has completed the demerger of its spinning business into GHCL Textiles. The demerger became effective from April 1 and the new entity GHCL Textiles will be listed on NSE and BSE after receiving regulatory approvals. The "demerger aims to unlock and maximise value for all stakeholders' and focus on operations and customers. It brings forth focused leadership and addresses independent opportunities with prudent capital allocation, the company said in a statement on Monday. "GHCL Textiles assumes all the assets and liabilities of the spinning business," it added. As per the demerger scheme, GHCL shareholders are "to get shares of GHCL Textiles in the ratio of 1:1". GHCL Managing Director R S Jalan said, the demerger is envisaged to create strong independent businesses uniquely positioned to enhance stakeholders' value over time. In February, the Ahmedabad bench of NCLT approved the demerger of the spinning division of the company into GHCL Textiles. GHCL is into manufacturing of soda ash, a major raw material for detergents and glass industries and sodium bicarbonate (baking soda)
Source: Economic times
Foreign Trade Policy (FTP) 2015-2020 was set to end on 31 March 2020 but was extended from time to time due to compelling circumstances. After the introduction of GST, the new FTP clearly another positive step towards a flexible and digitised policy framework for trade facilitation and augmentation. The New FTP was anticipated for a long time as several export promotion schemes in India under the FTP framework had faced challenges before the Dispute Settlement Body (DSB) of the World Trade Organisation (WTO), wherein DSB had ruled that certain schemes are inconsistent with the WTO guidelines. The wait for the new and revised WTO-compliant FTP ended when the Hon’ble Ministry of Commerce and Industry announced the FTP 2023 on 31 March 2023, which takes effect from 1 April 2023. FTP 2015-20 contributed significantly to the growth of India’s export in merchandise and services, which went from $435 billion in the FY16 to $676 billion in the FY22, and is expected to increase to $760 billion in FY23 as reported in the FTP highlights. Since FTP 2023 will have perpetual validity with flexibility to amend as per the needs of the hour and industry requirements, this will provide policy continuity and a responsive framework to the trade community. This will help businesses both in India and those who propose to invest in India and instill confidence to formulate strategies from a long term perspective. Additionally, the FTP 2023 has created ample room for policy advocacy The approach, to the new FTP 2023 policy is said to be based on four pillars, namely (a) Shift from incentives to remission (b) Export promotion through collaboration – Exporters, States, Districts, Indian Missions (c) Ease of doing business, reduction in transaction cost and digitisation and (d) Support to emerging areas such as E-Commerce, developing Districts as Export Hubs and streamlining SCOMET policy. Some of the key highlights include: Continuation of Advance Authorisations/EPCG/EOU/DFIA schemes Reduction on application fees for MSMEs under for Advance Authorisation /EPCG scheme Online approval without physical interference for the issue of Advance Authorisation, EPCG, revalidation of authorisations and extension of export obligation period, which will reduce processing time to one day, from earlier three to seven days Revamp of the ‘e-Certificate of Origin’ platform to provide for selfcertification Paperless filing of export obligation discharge applications Extending the benefit of the self-ratification scheme for fixation of norms to Two-star and above status holders Rationalisation of Status Holder Thresholds to enable more exporters to achieve such status The FTP 2023 has also taken an effective step towards internationalising the Indian Rupee (INR) by facilitating International Trade settlement in INR and extending FTP benefits for payments realised in INR through special Vostro accounts, set-up as per the RBI. Further, the FTP 2023 seeks to create a suitable policy framework to transform the country into a merchanting trade hub and accordingly, provides that the merchanting trade of shipment of goods from one foreign country to another without touching Indian ports, involving Indian intermediary, is allowed for all goods even if the same are restricted otherwise except for goods/items in the CITES and SCOMET list, but subject to compliance with the RBI guidelines. This will enable certain places in India, like GIFT Foreign trade policy Trade The FTP 2023 envisions to boost manufacturing in India and also focuses on the prevailing requirements of the Indian market by providing: Prime Minister Mega Integrated Textile Region and Apparel Parks (PM MITRA) scheme to claim benefits under the Common Service Provider Scheme of EPCG Exemption to the dairy sector from maintaining Average Export Obligation under EPCG Reduced export obligation requirement under EPCG to Battery Electric Vehicles (BEV) of all types, Vertical Farming equipment, Wastewater Treatment and Recycling, Rainwater harvesting system and Rainwater Filters, and Green Hydrogen are added to Green Technology products Most importantly, the introduction of “One-Time Amnesty Scheme” is a huge relief to exporters who are unable to fulfil their export obligations against the EPCG and Advance Authorizations. It is expected that all pending cases of default in the export obligation under authorisations can be regularised by the authorisation holder on the payment of all customs duties exempted in proportion to unfulfilled export obligation with ceiling on interest up to 100% of duties exempted. However, no interest would be payable on the portion of Additional Customs Duty and Special Additional Customs Duty. The Amnesty scheme shall be available for a limited period up to 30 September 2023. The finer details of the Amnesty Scheme is expected to be notified separately by the DGFT. An amnesty scheme was a long pending demand of trade and this announcement is expected to reduce pending litigation under such schemes. A thorough evaluation of the policy and procedure should be undertaken in order to assess the impact on account of benefits and concessions on businesses. city, etc., to be significant hubs for merchanting trade, like Dubai, Singapore, and Hong Kong. This will also, in turn, boost the manufacturing sector in India.
Source: Financial express
It has been discussed at length how India is at the edge of becoming the world’s next manufacturing hub. The Economic Survey 2022-23, in one of its observations, mentioned that India has a unique opportunity to become a global manufacturing hub this decade as foreign companies are adapting their manufacturing and supply chain strategies to build resilience. The survey said there are a couple of major risks in the global market, following compounding crises from the US-China trade war, the Covid-19 pandemic, and the war in Ukraine. This made India a global choice for the next manufacturing hub. However, Godrej & Boyce Chairman Jamshyd Naoroji Godrej thinks that India should address some issues first to iron out the challenges in the manufacturing sector. “There is a poor realisation at different levels. Not just at the Centre or state level. It is at the local level and village level too. There is a very little realisation of how complex manufacturing is. It is not like a service industry, like software, where as long as you have a place for people to work and have well-qualified hands, they can sit anywhere and do it. Manufacturing requires highly efficient factories; there are a lot of interdependencies between suppliers and manufacturers. The supply chain has to work efficiently,” Godrej told BT TV’s Udayan Mukherjee during an exclusive interaction. Talking about Vietnam’s model of manufacturing, Godrej said: “The reason why countries like Vietnam moved ahead of India was that they took care of the entire entry and operational part of the manufacturing along with the local bodies and the government. India has not done that yet. In Vietnam, when you have an industrial park, the park authorities actually take care of every type of clearance, and permission, that one needs. It is a literally one-stop shop. It is very efficient. India has still not understood the softer aspect of running a manufacturing hub, industrial park, and all. That is very crucial for efficiency.” Vietnam is one of the leading manufacturing hubs when comes to tech and apparel. Some of the biggest brands like Nike, Adidas, and Samsung have their manufacturing units there. Talking about bringing a change in the scene, Godrej said that there should be one body or council, which should be responsible for the entire functioning. “The central, state, and local all bodies have to give up their powers and designate one authority, which will take care of all of this on their behalf. This should be done so that the industrial body is not running around to get permissions and all. This is the most crucial point about manufacturing. If we can fix this problem, there will be an explosion in the manufacturing sector,” Godrej said. The Economic Survey 2022-23 stated that India's manufacturing sector accounts for about 15-16 per cent of the country's GDP and there is an aim to increase it to 25 per cent in the coming years. The survey, which was tabled before the Union Budget 2023, highlighted that the three primary assets to capitalise on this unique opportunity are the potential for significant domestic demand, measures by the government to encourage manufacturing, and a distinct demographic edge. It mentioned that to further enhance India's integration in the global value chain, 'Make in India 2.0' is now focusing on 27 sectors, which include 15 manufacturing and 12 service sectors and that include furniture, agri produce, textile, robotics, televisions and aluminium.
Source: Business today
INTERNATIONAL
Recently the Bangladesh-Vietnam Friendship Society was established with former ambassadors of Bangladesh to Vietnam, members of the Bangladesh-Vietnam Chamber of Commerce and many other elites celebrating the occasion of 50 year anniversary of diplomatic relations between the countries. It was in 1973 that diplomatic relations between Vietnam and Bangladesh were established; Vietnam was among the first countries to acknowledge Bangladesh’s independence. Bangabandhu, the country’s father, also Wednesdsay, Vietnamese Ambassador to Bangladesh Pham Viet Chien expressed his countries commitment to a stronger trade and investment relationship with Bangladesh. There has been remarkable growth in bilateral trade between the two countries over the past decade; by 2023, the value of trade between the two nations is projected to reach $2 billion. Such a strong trade relationship has proved to be conceivable because the countries priorities each other in their regional engagements. Where Bangladesh anchors Vietnam to South Asia being it’s second largest trading partner in the region, Vietnam also has contributed to Bangladesh’s foreign investment in different emerging sectors such as ICT, garments, agriculture and tourism. Although Bangladesh and Vietnam are well-known worldwide for their textile industries and are sometimes seen as competitors in the global apparel market, both countries recognize the value of a diligent cooperation. There can be more to their bilateral relationship, given that both are emerging economies in Asia. Vietnamese Ambassador, Pham Viet Chien previously showed enthusiasm in this regard stating “I think there is a lot of potential to further boost the economic relations between the two countries – from manufacturing industry to agriculture.” Vietnam has shown resilience similar to that of Bangladesh in the postpandemic period as its economy recovered rather quickly from the impacts of worldwide lockdown during corona. It reflects the sign of an inherently strong economy. Also, US-China trade war over Asia has significantly favored Vietnam’s economy and it’ll continue to do so. If it wants to become a high-income country by 2040, Vietnam must diversify its market further raking all it’s opportunities. Vietnam may be able to get access to South Asia through Bangladesh if the two countries develop closer ties. Trade ties with Bangladesh have shown that Southeast Asia has the potential to become a sizable market for Vietnamese exports. Via Bangladesh, Vietnam may reach Nepal and Bhutan, markets with considerable demand for Vietnamese exports Bay of Bengal and Indopacific region. Vietnam can also invest in the global halal food market, anticipated to reach $15 trillion in 2050, by capitalizing Bangladesh’s halal food market by investing in halal cattle meats. Bangladesh can also be a rice export hub for the country since it just signed an agreement to import 200,000 tonnes of parboiled rice and 30,000 tonnes of white rice from Vietnam to meet domestic demand and rising rice prices. Although the bilateral trade is on the rise, Bangladesh is running a trade deficit with Vietnam since as it imports $678.6 million worth of goods from Vietnam where it’s export’s to the country amount to only $61.29 million. Bangladesh has also struggled to attract significant investment from the country, with Vietnam only investing in one project in Bangladesh worth $27,900. To attract Vietnamese investment, Bangladesh might provide easier ways to invest in its economic zones related to technology or tourism, where it may give country-specific services to Vietnam. Bangladesh already has a low minimum salary of US$ 95, making it a desirable location for Vietnamese investors to transfer their operations. Bangladesh although competes Vietnam for the global apparel market, there are lessons in Vietnam’s journey that can help Bangladesh in future. Bangladesh’s export basket is standing on the apparel industry as 81.82 percent of its export income comes from the RMG sector. Bangladesh is heavily depended on cotton which is exported from China and India while Vietnam uses both men made fibers and cotton. Due to this, the recent US ban on Chinese cotton can heavily impact Bangladesh’s apparel industry. However, RMG sector is a strong backbone of the country’s economy. So, to lessen the dependency on other countries, Bangladesh can try using men made fibers and cottons to limited scale at the initial stage. And later, if its economically viable, the country can switch to Men made materials. So, this is one of various sectors where Bangladesh and Vietnam can share their knowledge and information to further each other’s growth in the market. Given its economic growth, Bangladesh may soon face the consequences of losing its LDC status, such as losing duty-free garment exports to the EU. As experts have said for decades, Bangladesh must diversify its export products as well as its export markets. Bangladesh’s developing pharmaceutical sector may potentially find its way to Vietnam, where imports have increased in the last decade to suit the country’s pharmaceutical demands. This February Vietnam extended its market authorization of EU pharmaceutical exports which will ease EU’s export access to Vietnams pharmaceutical sector. If Bangladesh can gain the same privilege, it can have an accelerating effect on the existing pharmaceutical trade among the countries-reducing trade deficit of Bangladesh. Recently, Jong Won Kim, the Director General of the Green Growth Department at the Korea Trade-Investment Promotion Agency said that the countries that missed boat to invest in Vietnam, should look forward to Bangladesh for venture opportunities which indicates that Vietnam and Bangladesh are parallel to each other’s success in the current world. If the countries continue collaborate smartly, they can be each other’s most trusted allies in the other’s region. Bangladesh, focusing on it’s look east policy can find strong value in the support of the ASEAN member Vietnam and Bangladesh position in the intersection of South Asia and Southeast Asia can come in handy for the economic aspirations of Vietnam.
Source: Eurasia review
The Bangladesh garment industry contributes a significant portion to the country’s GDP so benefits gained from implementing circularity can ultimately contribute to the country's economic growth and development The concepts of both circular economy and circular fashion focus on sustainability and reducing waste, with the main difference being their scope and application. A circular economy is an economic system that is applicable to all industries, not just fashion. It aims to create a system where materials are reused, repurposed and recycled. It enhances the longevity and use of products by keeping materials in use and helps regenerate natural systems and reduces waste. While the traditional fashion industry operates in a linear model, which entails the production of new clothes, their use by the consumers, and finally, their disposal as waste. This is not only unsustainable, but it also causes a reduction of natural resources, the emission of greenhouse gases, and generates huge amounts of waste. Circular fashion builds on the principle of the circular economy, with a focus on the fashion industry. It is specifically concerned with making the fashion industry more sustainable. It aims to create a closed-loop system in which clothing items are designed, produced, used, and disposed of in a sustainable and environmentally friendly way.
Do we need circularity in the fashion industry of Bangladesh? The Bangladesh garment industry contributes a significant portion to the country's GDP so benefits gained from implementing circularity can ultimately contribute to the country's economic growth and development. Bangladesh is vulnerable to the effects of climate change, including rising sea levels, more frequent natural disasters, and decreased agricultural productivity. The textile and garment industry also contributes to the country's greenhouse gas emissions and water pollution. Circular fashion practices can help reduce waste and mitigate the industry's environmental impact ultimately balancing environmental sustainability. Circular fashion encourages the design of products that are repairable, reusable, recyclable and biodegradable. These types of products ultimately help reduce the cost of sourcing raw materials and by reusing water, it also reduces the cost of water treatment, which helps bring down the costs to the whole supply chain. The Bangladesh garment industry is one of the main sources of employment and economic growth for the country. Circular fashion practices can create new job opportunities which can significantly affect the poverty rate of the country and increase the value of textile waste, thereby contributing to the economic development of the country. Consumers are now increasingly demanding sustainable, transparent and ethical practices in the fashion industry. Companies that prioritise circular fashion values can attract more customers and gain a competitive edge as it reduces child labour, forced labour, and unsafe working conditions. In recent times, the industry has become a role model for other countries by implementing these practices which have eventually resulted in a positive branding of the industry. Challenges in implementing circular fashion practice in Bangladesh and how they can be overcome One of the main challenges in achieving circularity in the Bangladesh garment industry is the lack of infrastructure for recycling and proper waste management. Right now, the country has to export the waste to recycle in other countries, for example around 200 million worth of pre-consumer waste has been exported from Bangladesh. Of this, over 60% is exported to India for recycling, which we then buy back as yarn to make fabric. If we recycled in our own country, it would reduce the costs of this process and make the whole supply chain smoother. Around 4,00,000 tons of micro-fibres and scraps that are disposed of as waste every year can be recycled to produce approximately 1 billion garments products, which has the potential to generate a revenue of about 3 billion USD yearly. Due to the limited facilities for recycling textile waste, much of it ends up in landfills or is incinerated thus contributing to environmental pollution and greenhouse gas emissions. The adoption of circular fashion would require significant investment in new technology and infrastructure, which could be costly for many companies in Bangladesh. We need support from the global circularity techno giants like Infinited Fiber, Renewcell, Spinnova etc. to get guidance on the nuances of circular business. Foreign direct investment/JV with local companies will be a game changer in fast-tracking the circular business model in Bangladesh. We also require a conducive policy framework from the government of Bangladesh and financial support and incentives to get the maximum benefit from the implementation of circularity in the Bangladesh garment industry. So the government, stakeholders and policymakers must focus on custom-made financing support due to the need for heavy investment in technology The circular fashion model involves recycling and upcycling materials to create new products, which requires access to a steady supply of high-quality materials. So far, we have been producing mostly low to middle-end products so the materials we can recycle and upcycle are not so high-end on average. This could make it challenging to implement circular fashion practices in our country. As the country is focusing more on value-added products, this challenge will be overcome over the course of time. The concept is relatively new in the industry and as a result in Bangladesh as well. There is a lack of awareness and education on circularity among workers, factory owners, consumers and the whole system. These gaps need to be addressed properly or else it will be difficult to undertake this concept. Customer demand and taste in fashion have changed remarkably in recent times. Customers like to match trends and use new products with lower prices which makes the products' life shorter. This is known as a fast fashion model, and it currently dominates the industry and encourages consumers to buy and dispose of clothes quickly at the end. This is leading to a high volume of textile waste that is difficult to manage and recycle.
What are the initiatives in Bangladesh so far? The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has launched a "Circular Fashion Partnership" project to support circular fashion practices in the country. The project aims to create a platform for stakeholders to share knowledge and practices and to promote the circular business model. Another initiative is the "Switch to Circular Economy" project, which is supported by the United Nations Industrial Development Organization (UNIDO) and the Government of Bangladesh. The project aims to promote sustainable practices in the garment sector, including circular fashion, by providing technical assistance and capacity building to garment factories Several private sector companies are also promoting circular fashion practices in Bangladesh. For example, the denim manufacturer, Envoy Textiles, has launched a "Closed Loop Denim" project to recycle post-consumer denim waste and create new denim products. Similarly, Grameen Knitwear has launched a "Circular Apparel Innovation Factory" to develop circular business models for the garment industry. In partnership with BEXIMCO, the US-owned recycling company RECOVER has invested in scale, Hameem Group has also initiated recycling, CYCLO has also been running their recycling fabric business successfully. Bangladesh Apparel Exchange (BAE) has been working in this arena to promote circularity in Bangladesh and they have announced the first-ever Bangladesh Circular Economy Summit and Bangladesh Circular Apparel & Textiles Forum on 15 June 2023. These game-changing events will bring together businesses, policymakers, and the development community to explore the realities of transitioning to a circular economy in Bangladesh. Implementing circularity in the fashion industry of Bangladesh has some challenges but by addressing these properly, we can reap the enormous benefits it offers. Every profit-oriented business entity is there to primarily make profits by serving the customers in an ethical way. There must also be a minimum commitment towards sustainability to achieve economic goals.
Source: Tbs news
Despite increase in imports from China year on year, traders of Nepal seem to be unhappy with China opening borders at a time when the demand for goods is slow with no large orders for the Chinese goods because of high domestic bank interest rates and inflation in Nepal, The Kathmandu Post reported. In the first seven months of the current fiscal year, Nepal's top imports from China were ready-made clothing, telecommunications equipment and parts, textiles, machinery, computers and their parts, and electronic items. The first eight months of the current fiscal year saw a 4.85 percent decline in Nepal's exports to China. In the most recent fiscal year, the nation sold items to China valued Nepalese Rupees 808.75 million, reported Kathmandu Post, as the Himalayan nation has a substantial trade deficit with China, which in the first eight months of the current fiscal year totalled Nepal Rupees 145.26 billion. Around 2015, when the Nepali government reduced duties on items exported to the northern neighbour, business with China began to soar. Global freight prices increased due to the Covid-19 outbreak. As a result, prices for products have increased, significantly driving up inflation in nations like Nepal. As per Kathmandu Post, between Nepal and China, there are two important commercial routes: Rasuwagadhi-Kerung and Tatopani-Zhangmu (also known as Khasa). On May 29, 2019, Tatopani-Khasa border point reopened after being shuttered for four years as a result of the 2015 earthquakes. The border crossing site was a crucial overland commercial route with the northern neighbour before the disastrous earthquakes destroyed infrastructure, generating more over Nepalese Rupees 15 million in daily revenue for the Tatopani Customs Office. The primary land route for trade with China has historically been TatopaniKhasa, about 115 kilometres from Kathmandu. Early in 2020, China blocked the border due to the Lhosar festival and significant snowfall. On March 11, 2020, the World Health Organization labelled the coronavirus outbreak a pandemic. As a result, nations were forced to close their borders and some even implemented lockdowns to stop the sickness from spreading. Due to the 16-month ban on the entry of their cargo-laden container trucks, Nepali traders even accused China of establishing an "undeclared trade blockade." Officials from the Nepali government, however, have repeatedly denied any such intentional impediment, according to Kathmandu Post. (ANI)
Source: ANI news
Can the Turkish textile industry become the focal point of the European textile market? If the organisers of the Texhibition Istanbul Fabric and Textile Accessories Fair have their way, the sourcing fair and thus the country's textile production is to move further into the global spotlight. Just two weeks prior to the event, which took place in Istanbul at the beginning of March, it was unclear whether the fair would go forward following the devastating earthquakes in Turkey and Syria in early February. There were discussions to call off the event, but after consulting the companies affected by the disaster, the fair ultimately went ahead - and without a single cancellation, said Fatih Bilici, president of the Texhibition Committee and vice president of the Istanbul Textile Exporters Association İTHİB. In the end, the fair's three halls covered over 30,000 square metres at the Istanbul Expo Center, with 437 producers exhibiting knitwear, woven goods, denim, yarns, prints and accessories - a record for the fair's third instalment. With 18,525 visitors, the fair also set a record with 50 percent more participants than at its inaugural show a year ago. Nevertheless, the number of visitors was lower than the 25,000 that had been expected. According to the organisers, international visitors from 104 different countries attended Texhibition. Among them were buyers invited to visit from the EU, UK, US, Middle East, and North Africa. However, both the exhibiting producers and visitors were mainly from Turkey. While roughly 45 percent of visitors at Istanbul Fashion Connection (IFCO) came from abroad, they only accounted for around 10 percent of the people at Texhibition. In the future, the aim is to change that, and the endeavour to internationalise the sourcing fair is not only the organisers' dream but also appeals to the exhibitors, as the Turkish textile industry's primary focus is export. Ambitious export targets despite the current crisis Not only Texhibition, but the entire Turkish textile industry has high ambitions. In 2022, the industry achieved a record result of about 13 billion US dollars (12.05 billion euros). Despite high inflation, upcoming elections and the catastrophic effects of the earthquake in the southeast, that number is expected to increase to 15 billion US dollars (13.93 billion euros) in 2023. To what extent the goals of the second-largest European textile exporter are realistic remains to be seen. Twenty-eight percent of the export volume and thus about 3.1 billion US dollars (2.88 billion euros) are attributed to producers in the earthquake regions, but Turkey has put up a resilient and hopeful front. Going forward, the country aims to account for 20 percent of the EU's textile imports, according to a Texhibition's closing report, in which Ahmet Öksüz also expressed confidence. "We will increase our production in a concentrated way and boost exports with even greater motivation," says the chairman of İTHİB and Kipaş Holding, which includes the denim producer of the same name. "With the Texhibition Istanbul Exhibition, we are helping to heal the wounds left by the earthquake. We stand together as a country to strengthen and add value to the Turkish textile industry."
Turkey’s textile industry stands united and shares a vision forthe future
The solidarity of the country, and its textile industry, is also evident in conversations with exhibitors. The earthquake particularly hit weaving and spinning mills in the south, including the regions of Adana, Kahramanmaras, Gaziantep and Kayseri. Exhibitors from Istanbul and other locations in the country also spoke about psychological wounds left by the disaster. "We were incredibly lucky," said Hande Yildirim, sales executive of Adana-based denim specialist Bossa. The company is one of Turkey's largest denim manufacturers and supplies brands such as Diesel, G-Star and Inditex. "Our factory was not badly damaged, but we stopped production for a week to support our workers. In some cases, they or their families were hit much harder by the earthquake than their employers and are struggling with its effects." "In this situation, we have to stick together like a family," emphasised Ahmet Ak, sales representative of Sasa, Turkey's largest yarn manufacturer. He spoke of aftershocks that continue to deprive survivors of sleep, but at Sasa, too, the factory is undamaged and production was not forced to stop. The factory was not damaged, he said, but some sensitive machines had to be readjusted and restarted. Overall, the company expects turnover to be between 10 to 20 percent lower as a result of the disaster, mainly because some raw materials cannot be delivered currently - even if the manufacturer's production is hardly affected. One such supplier currently struggling to fulfil orders is cotton supplier Iskur, though that is a secondary issue. Thirty-two workers died in the catastrophic earthquake, as did the two children and wife of Iskur's managing director, Kadir Kurtul, who was in Istanbul at the time of the event. It is difficult to comprehend just how life is supposed to go on after a stroke of fate like this one, but the Iskur Group, like many companies in the Turkish textile industry, is trying to look ahead. The earthquake destroyed 30 percent of Iskur’s warehouse, and about 70 percent of the yarn factory burnt down, said Leyli Rozyyeva, who is responsible for marketing for the company. Iskur also no longer has any stock, but production is already slowly restarting during the days of the fair. Between 40 to 45 percent of production has been outsourced to factories of other manufacturers, who are more than willing to help during this difficult time. It could take another six months to a year before production is restored in the company's factories, Rozyyeva estimated. Iskur is fortunate, however, because customers show compassion. Some are even purchasing increased quantities to support the company financially. "Prior to the earthquake there was competition, now producers share their factories and capacities," explained İTİB vice president Bilici. He confirmed that talks and agreements are taking place among the individual producers. After all, everyone in the industry knows each other. Orders are now to be passed on to functioning factories, as is the case for Iskur. "If we want to live on, we have to live together," Bilici said about the textile industry in Turkey.
‘Not as cheap as the Far East, but not as expensive as Europe’ Manufacturers provide plenty of arguments in favour of Istanbul as Europe's textile centre. The geographical advantage is arguably unbeatable as many clothing manufacturers are looking for ways to relocate parts of their production from Asia back to Europe. Alp Hamzagil, from the printing company Rabek Textil, summarised Turkey's strengths as a sourcing country: "We are not as cheap as the Far East, but not as expensive as Europe either. We can also deliver faster and cheaper than the competition." A conversation with Ezgi Gürer, head of sales and marketing at lace producer Antik Dantel, illustrates just how fast the exhibitors work. "We work a lot with the Inditex Group and therefore have to be fast," says Gürer. "As soon as a sample fabric is requested from us, we send it out the same day." In addition to Antik Dantel's 17,000 or so existing designs, two to three new designs are added each week, a rhythm similar to that of fashion chains such as Zara and its weekly 'drops'. What exactly Inditex's possible return to China means for Turkey and what effects it may have is something no one could or would say. Gürer admitted that Turkey benefited from the Covid-19-related supply shortages but also stressed that most companies have since been more careful to reduce risks and hedge their bets - with suppliers in Turkey, China or other sourcing countries Flexible logistics, shorter delivery times and transport routes are powerful arguments for working with Turkey's textile exporters, but quality and reliability also play a major role. However, at least according to İTİB vice president Fatih Bilici, domestic companies are not hoping for customers from the luxury sector. The European fast-fashion industry is the main focus. Nevertheless, the country is still too expensive for the production of basics and cannot keep up with the prices of other non-European countries. "We are currently 10 to 15 percent more expensive than comparable competitors from China, but our quality is compelling," says Yücel Ikiler, export manager of the artificial leather company Hefa. In terms of price, Turkish producers are competitive, but not unbeatable. On the other hand, the country has an entirely different, and for some companies, crucial advantage, as Turkey is increasingly opting for sustainable production - not least to meet the demands of its customers.
Inditex, Mango and the European Green Deal drive sustainability Sustainability is key at most of the stands at Texhibition. Some proudly advertise their certifications, while others speak of the use of renewable energy - especially solar panels - on the roofs of their factories. The sustainable efforts are mostly due to the increasing demands from Europe - especially from the fast-fashion companies that are so important for Turkey, such as Mango or the Inditex Group. Partnering with Inditex is the next objective for textile producer Migiboy, but there is currently no way, according to export manager Elif Begen. The factory is coal-fired, a dealbreaker for Inditex, she explains. The focus on exports, especially to Europe, also means that manufacturers increasingly have to adapt to the European Union's Circular Economy Action Plans requirements. If they fail to meet these, they will miss out on a lucrative market and a considerable part of their turnover. According to Texhibition's final report, the industry's major objectives at present are the reduction of water consumption, increasing the efficiency of renewable energy sources, a more sustainable organisation of supply chains, zero-waste in production and a circular economy. A separate certificate called 'GMO-Free Turkish Cotton' has also been in place for a few months to promote and better market organic cotton cultivation in Turkey. It identifies cotton without any genetic manipulation. According to Bilici, all companies present at the Texhibition are ready for the sustainable requirements of the European fashion industry. Nevertheless, some companies argue that sustainability is taking a back seat as most buyers focus on pricing
High expectations and ambitious goals The exhibitors' feedback is predominantly positive, the potential of the fair and its necessity for the Turkish textile sector is emphasised again and again, but there are occasional suggestions for improvement. Firstly, there is the timing, as the fair marks the end of the trade fair calendar. Most buyers - as well as most exhibitors - have already visited the big international fairs such as Premier Vision in Paris or Munich Fabric Start in Munich. Istanbul is now the last stop for all those who are still missing something for the production of their Spring/Summer 2024 collections, says Günsel Güngor of BTD Textile, a textile manufacturer. In Istanbul, visitors are looking for complementary items, but most have already placed their orders, says Güngör. According to Hamzagil, the fair is for those who want to get acquainted with almost all Turkish suppliers in one place. Timing, however, is a problem for Europe. "For most companies, sourcing has already been completed. They are already preparing their collections." Nevertheless, he sees potential for the trade fair but emphasises room for improvement. The industry as a whole lacks some courage, according to Hamzagil. Only Zara's parent company Inditex, a frequent topic at the sourcing fair, still makes bold choices. Texhibition organisers now want to take on Paris-based trade show Premiere Vision, which organised a fair in Istanbul from 2014 to 2018, because in the long term Texhibition should not be "just" one of many textile fairs. "We have noticed a great deal of interest from the industry. Texhibition has established itself as an international hub for efficient sourcing," said vice president Fatih Bilici in the fair's final report. "More innovations are being planned for the next edition in September 2023. The focus is on healthy growth." In a personal conversation at the fair, Bilic was even more direct, saying that fashion and, therefore, textiles belong to Istanbul. He also underlined the future goal of the fair: "Number one internationally, not only in Istanbul."
Source: Fashion united
Import cargo volume at the nation’s major container ports should climb steadily through this summer but will remain below record-setting levels seen during most of the pandemic, according to the Global Port Tracker report released today by the National Retail Federation and Hackett Associates. “Last spring and summer were the busiest ever as consumers spent freely and retailers brought in merchandise to meet demand,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. “This year won’t repeat that, but the numbers we’re expecting would have been considered normal before the pandemic. The priority at the moment is resolving labor negotiations at the West Coast ports and avoiding any selfinflicted supply chain challenges on top of those we’ve faced the past three years.” NRF last month sent a letter signed by 238 national, state and local trade associations to President Biden encouraging further engagement by the administration in the West Coast talks. In addition, NRF President and CEO Matt Shay met with Port of Los Angeles Executive Director Gene Seroka at NRF headquarters in Washington to hear the latest developments regarding the status of negotiations. The contract between the International Longshore and Warehouse Union and the Pacific Maritime Association expired July 1. Workers remain on the job, but many shippers have shifted cargo elsewhere to avoid any potential disruption. “Compared with last year, the flow of import containers on the West Coast continues to decline along with demand as carriers increasingly drop service to Los Angeles-area ports but stretch voyages to include other ports of call to help absorb excess capacity,” Hackett Associates Founder Ben Hackett said. “Meanwhile, freight rates have been impacted by the fall in demand, but new ships are starting to show up and more have been ordered – a sign that carriers expect demand will improve by the time the new vessels are delivered.” U.S. ports covered by Global Port Tracker handled 1.55 million Twenty-Foot Equivalent Units – one 20-foot container or its equivalent – in February, the latest month for which final numbers are available. That was down 14.4% from January and down 26.8% year over year. February is historically the slowest month of the year, but the number was the lowest since 1.53 million TEU in May 2020, when many factories in Asia and most U.S. stores were closed due to the pandemic. Ports have not yet reported March numbers, but Global Port Tracker projected the month at 1.68 million TEU, down 28.2% year over year. April is forecast at 1.86 million TEU, down 18% from last year; May at 1.91 million TEU, down 20.1%; June at 1.99 million TEU, down 11.8%; July at 2.1 million TEU, down 3.9%, and August at 2.13 million TEU, down 5.9%. The large year-over-year declines are skewed by unusually high volumes last year. A 20- month streak of totals above 2 million TEU that began in 2021 – including an all-time monthly record of 2.4 million TEU in May 2022 – didn’t end until last November. By comparison, imports averaged 1.8 million TEU per month during pre-pandemic 2019. The first half of 2023 is forecast at 10.8 million TEU, down 20.2% from the first half of 2022. Imports for all of 2022 totaled 25.5 million TEU, down 1.2% from the annual record of 25.8 million TEU set in 2021. 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
Source: Textile world
