ImagesMagUK_September_2021

www.images-magazine.com SEPTEMBER 2021 images 29 INDUSTRY ISSUES It could take until 2024 before prices and timings return to anywhere near pre-Covid rates 25-30% of all Chinese exports leave from, and it’s little wonder that shipping frequencies have continued to decline and costs have continued to rise. “I am sure our industry and the wider business community are starting to feel the excuses of delays based on a lack of container space starting to wear a bit thin, but the reality is that the impact of Covid on the usual ebb and flow of world trade very much remains and will continue to affect the supply significantly well into 2022, if experts are to be believed,” warns Joel Chadwick, managing director of sportswear manufacturer Chadwick Textiles. Donald Moore, chair of uniform manufacturer One+All, reports that ships that would typically do six return trips a year are now doing four. “The cut in container trips has forced shippers to increase their prices from a previous average of $2,000 for a 40- foot container to as much as $15,000. Some of this pricing has been extra profit opportunities for the shippers and the largest shipper made more profit in the first quarter of this year than the previous ten combined!” Donald continues: “These extremely high costs mean that wholesalers importing from these countries have to pass on some of these additional costs. We can all expect to pay more for imported goods.” Like Joel, Donald expects these delays and high prices to remain in force until after Chinese New Year 2022, and that it could take until 2024 before prices and timings return to anywhere near pre- Covid rates. “We’ve prepared by doing all we can to order plentiful stocks for back-to-school 2021 as it’s critical for customers that we try to help them meet the demands – particularly this year, after they’ve had so many challenges,” he says. Scramble for containers While there are many issues facing those trying to ship goods from overseas at present, Ian McLaverty, merchandise director at schoolwear manufacturer David Luke, says “the biggest impact has been the inability to forward book container space and guarantee availability. There are lots of reasons why this is now not possible, but because of this single fact, it feels like a last minute scramble for each container we want to move. This in turn makes things very hard to communicate and explain down the chain to our end customers.” He doesn’t expect costs to return to pre-Covid price levels, and notes that shipping costs have increased ten-fold, “which have been very hard to manage for us; in our industry it is very hard to pass on price increases mid-season”. He adds: “Planning and awareness further down the chain is going to be even more important–knowing where your raw materials are will be imperative to forecasting the end delivery date – therefore we will require even more forward-planning and commitment as the world looks to recover.” His message to garment decorators is simple: “Stock replenishment is not going to be easy to manage short-term, so try to give your suppliers confidence and visibility by forward-ordering where you can. Keep in touch with your suppliers and make sure they are aware of your intentions. Prices are looking like they will need to increase, but we are sure that every supplier is working hard to keep these to a minimum as everyone understands the impact.” Manufacturer Result Clothing, which produces a wide range of blanks from workwear and sportswear to headwear and safetywear, has paid out more than £1 million in extra freight charges between November 2020 and July 2021, none of which was passed on to customers. “Result’s policy has been to try to maintain good stockholding levels as a main priority and shield customers from these increased freight costs for as long as possible,” confirms managing director David Sanders-Smith. “Result’s high levels of stock has helped achieve a 25% growth in workwear, polar fleece and softshell, which allowed us to limit the 1st July price increase to just a few China-made products. “These increased production efficiencies helped us maintain many January 2019 prices until now; unfortunately container freight costs have continued to spiral including from Bangladesh, so Result is now forced to pass on some of the higher freight charges. But our main endeavour is maintaining deliveries of great value- for-money stock to support the market’s high demand.” He recommends that customers with promotions or orders pending to buy stock and take delivery now, as the next few months “may prove extra challenging”. Result’s new product range will, however, still arrive in time for the January 2022 launch, asserts David. Strong stock levels Like many in the industry, says Joel, Chadwick has seen strong demand in schoolwear, with the demand for teamwear now catching up too. The company is working hard to ensure it secures the shipping space needed to get goods out of China “whatever the costs”, and says while it’s not easy, its success “boils down to relationships, contacts and the strength of our supply chain, something we have worked hard on over the last few years”, plus having staff and an office in China, which “has been invaluable in getting things done when it seemed the world was crumbling around us!” reports Joel. Chadwick has maintained strong stock levels throughout the pandemic, he explains. “We took the decision early on in spring 2020 to keep producing as normal; we felt the school market would still operate to a greater extent even if there was disruption. We have seen demand surge for PE and gameswear as items such as skinny pants, mid-

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