Shanghai – As China’s Covid-19 cases hit their highest level since May, the Intertextile Shanghai Home Textiles show pulled the plug on next month’s expo.
Scheduled to take place from Aug. 15-17, event was slated to combine the autumn edition of the trade fair with the spring edition, which had been posted earlier this year. Trade show organizer Messe Frankfurt (HK) Ltd. announced that the autumn edition is being deferred to 2023.
According to Bloomberg, Shanghai’s most recent pandemic outbreak is now stabilizing and most people who tested positive are already in quarantine.
“After holding discussions with our stakeholders, we have made what we believe to be the responsible decision to delay the fair. While the call was made with the safety of the fair’s participants in mind, deferring the fair to the early part of next year will also allow more time for fairgoers to plan for their participation,” said Wendy Wen, senior general manager of Messe Frankfurt (HK) Ltd.
Dates for the 2023 spring and autumn editions of Intertextile Shanghai Home Textiles will be announced at a later date.
“We understand that there is a lot of anticipation surrounding this fair, with exhibitors and buyers eager to connect in person,” said Wen. “We would like to thank all participants for their patience and understanding, and also to express our continued dedication to provide a quality international trading platform for the home textile industry.”
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]]>Washington – According to the monthly Global Port Tracker report released today by the National Retail Federation (NRF), imports have set another record high this spring as the nation’s major container ports worked to reduce congestion and retailers stocked up before dockworkers’ West Coast labor contract expired.
“Cargo volume is expected to remain high as we head into the peak shipping season, and it is essential that all ports continue to operate with minimal disruption,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. “Supply chain challenges will continue throughout the remainder of the year, and it is particularly important that labor and management at West Coast ports remain at the bargaining table and reach an agreement.”
The contract between the International Longshore and Warehouse Union and the Pacific Maritime Association expired July 1, but cargo operations are continuing at this time. NRF and more than 150 groups wrote to President Biden last week asking the administration to work with both sides to avoid disruption.
Ports saw a surge in activity this spring as a slowdown in cargo from Chinese factories closed by COVID-19 gave them a chance to clear built-up congestion. Retailers bringing in seasonal merchandise and importing other goods early to avoid any problems related to the contract negotiations may have also contributed to volume.
“Congestion of ships waiting to berth on the West Coast has eased, and we expect to see the same on the East Coast as carriers begin to return to their normal patterns of port calls,” said Ben Hackett, Hackett Associates’ founder. “After a short period of decline, freight rates are on the rise again as congestion in Europe and idle vessels there take capacity out of circulation.”
Prepared by Hackett Associates, the latest Global Port Tracker found that U.S. ports covered by the report handled 2.4 million twenty-foot equivalent units (TEU) in May, the latest month for which final numbers are available. That was up 6 percent from April and up 2.7 percent year over year. It also set a new record for the number of containers imported in a single month since NRF began tracking imports in 2002, topping 2.34 million TEU this March.
Ports have not yet reported June numbers, but Global Port Tracker projected the month at 2.25 million TEU, up 4.8 percent from the same month last year. That would bring the first half of the year to 13.5 million TEU, a 5.4 percent increase year over year.
Looking further forward, July is forecast at 2.31 million TEU, up 5.3 percent from last year, and would be the fourth-busiest month on record. August is forecast at 2.26 million TEU, down 0.5 percent year over year; September at 2.12 million TEU, down 0.8 percent; October also at 2.12 million TEU, down 4.1 percent, and November at 2.06 million TEU, down 2.5 percent.
The year-over-year declines during the second half of the year contrast with unusually high numbers during the same period in 2021, but volumes remain high, and the full year is still expected to see a net increase over 2021. Imports for all of 2021 totaled 25.8 million TEU, a 17.4 percent increase over 2020’s previous annual record of 22 million TEU.
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]]>Beijing – The United States’ shift toward protectionism appears to have sparked a similar attitude among the Chinese populace.
Public opinion in China looks to be shifting to be less in favor of open trade, according to a study from the Peterson Institute of International Economics (PIIE). The Institute conducted three surveys in China since the U.S.-China trade war began in 2018, each coinciding with key events as the trade war escalated. With each survey, support for free trade declined.
After the U.S. increased tariffs from 10% to 25% in 2019, one survey found that support for open trade fell sharply, from an average of 6.5 out of 10 to 4.3 out of 10. A score under 5 means that free trade isn’t favorable.
The findings show a growing desire in China for reciprocity. “Direct” reciprocity refers to “declining support for cooperation with countries that do not themselves cooperate.” “Generalized” reciprocity is more encompassing, referring to an aversion to trade with all other countries. Both forms saw increases among the public.
The findings also suggest that China’s policy in its eye-for-an-eye battle with the U.S. has been influenced by public opinion, at least in part. China requested comments from the public in February 2018 on how it should respond to Trump’s tariffs. It soon levied 25% tariffs on more than 100 American products.
“If the regime were to make trade concessions to the United States in the face of strong domestic opposition, this would risk a potentially destabilizing domestic backlash,” the authors of the study wrote.
Sentiment doesn’t seem to have eased as Biden became president, as a survey conducted after he took office showed next to no change.
According to the South China Morning Post, China’s top legislature said in March that self-reliance has become its chief economic focus.
As of early July, Biden and his administration remain divided on whether tariffs on China should be kept or discontinued. An answer will have to be made soon, as they automatically are set to expire after four years.
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]]>International Market Centers (IMC) and Gift For Life are joining forces to raise funds through a multipart initiative this summer.
Running from now through August 1, the fundraiser, called “Come Together,” aims to raise money for crisis-related hunger relief in Ukraine by bridging IMC’s digital and physical markets – JuniperMarket, Atlanta Market and Las Vegas Market – to benefit World Central Kitchen’s (WCK) #ChefsForUkraine program.
“As the crisis in Ukraine escalates and as the need for food resilience programs is felt worldwide, we encourage the industry to come together to support the valuable work of Chef José Andrés and WCK,” said IMC CEO Bob Maricich. “By placing orders with participating gift and home furnishings brands – online and in person – buyers and sellers can make a difference for communities in need.”
IMC’s summer market giving event will raise funds in three ways: JuniperMarket will donate $5 per order up to $5,000 through August 1; IMC’s markets in Atlanta and Las Vegas will match donations up to $5,000; and participating vendors will donate a portion of proceeds from at-market sales. Direct donations are also being accepted online. A fundraising goal of at least $25,000 is set for the program and vendors interested in participating in the fundraising can email [email protected] for information on how to join.
To incentivize order-writing on JuniperMarket and individual contributions, IMC has launched a contest to award Atlanta Market and Las Vegas Market hotel and dining prizes for the upcoming summer markets to buyers and sellers who donate online or place Juniper Market orders beginning June 1 through June 15. Winners, who will be randomly selected from all eligible participants, will receive one of seven prizes connected with the summer 2022 markets:
- Atlanta Market
- Two-night accommodations and breakfast for two at Hotel Indigo
- Two-night accommodations and breakfast for two at Hyatt Regency
- Two-night accommodations and breakfast for two at Westin Peachtree Plaza
- Two-night accommodations and breakfast for two at Marriott Marquis
- Las Vegas Market
- $150 dining credit at Oscar’s Steakhouse at the Plaza Hotel
- $200 Dining credit at Bazaar Meat by Jose’ Andres at the Sahara Hotel
- Two complimentary tickets to either a Gordie Brown Show or a 52 Fridays show at the Golden Nugget Showroom, plus $100 Dining credit for the Salt Grass Steakhouse
Following that, from June 15 through August 1, buyers and suppliers donating directly to the fundraiser or placing orders on JuniperMarket will be eligible to win one of the seven following hotel and dining prizes to be used during IMC’s winter 2023 markets:
- Atlanta Market
- Two-night accommodations and breakfast for two at Hotel Indigo
- Two-night accommodations and breakfast for two at Hyatt Regency
- Two-night accommodations and breakfast for two at Westin Peachtree Plaza
- Two-night accommodations and breakfast for two at Marriott Marquis
- Las Vegas Market
- $150 dining credit at Oscar’s Steakhouse at the Plaza Hotel
- $200 Dining credit at Bazaar Meat by Jose’ Andres at the Sahara Hotel
- Two complimentary tickets to either a Gordie Brown Show or a 52 Fridays show at the Golden Nugget Showroom, plus $100 Dining credit for the Salt Grass Steakhouse
All funds raised by “Come Together” will be directed to WCK’s #ChefsForUkraine program which has already served more than 27 million meals across eight countries since Russia invaded Ukraine on February 24 of this year. Through the program, WCK is bringing hundreds of thousands of daily meals and 12 million pounds of food to over 3,000 distribution sites across the country. Additionally, WCK is supporting local restaurants preparing meals in cities across Ukraine including in Odessa, Lviv, and Kyiv.
Adding to the spotlight on Ukraine and the ongoing war, seven Ukrainian furniture manufacturers will be featured in a returning special showcase, the Ukrainian Pavilion, during IMC’s Las Vegas Market this summer, too. Located within the B2 Furniture Temporary Exhibits, manufacturers present will show chairs, tables, sofas, other living room furniture and more.
“Having a direct connection to people in Ukraine who are receiving aid from World Central Kitchen is humbling,” noted Maricich. “We are proud to raise funds to support the communities of the exhibitors who are coming from Ukraine to Las Vegas Market, and are pleased that ‘Come Together’ donations are benefitting workers and their families who are part of our global industry.”
Tivoli sales manager Alla Lisovskaya, who has organized the Ukrainian Pavilion at Las Vegas Market since 2018, actually met WCK chefs while those chefs were at the Polish border feeding Ukrainian refugees.
“The world is small,” said Lisoyskaya, who was transporting furniture for shipment to Las Vegas Market when she met the duo. “By chance, I met two WCK chefs, from Washington DC and San Francisco, in the Lviv region of Ukraine where our factory is located. It was amazing to meet people in our small city who are connected to the same organization that Las Vegas Market fundraising will benefit.”
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]]>Hangzhou, China — Chinese online marketplace Alibaba is cutting costs due to sagging profits according to a report by European retail news website Retail Detail.
“In the new fiscal year, we will focus even more on cost control and continue to improve our operating efficiency,” Daniel Zhang, chairman and CEO, said in a blog post. “This includes streamlining unprofitable businesses, improving cash cycles and enhancing investment efficiency in personnel, fixed assets, and other areas to maintain financial flexibility amidst uncertainties.”
The report notes that Alibaba’s revenues are still growing, but profits have tumbled by 59%, and retail sales have dropped 3.5% in China.
Further hamstringing the brand, Retail Detail notes that Alibaba’s Southeast Asian brand Lazada’s online orders have slowed while European brand AliExpress is facing issues due to amended European VAT rules in which customs charges must be paid on all packages from outside the European Union, as well as impacts from the ongoing Ukraine-Russia conflict.
“Looking ahead to fiscal year 2023, we will firmly focus on generating sustainable, high-quality revenue growth and optimizing our operating cost structure to enhance overall return amidst these uncertain times,” Toby Xu, chief financial officer, said in the company’s Q4 earnings report.
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]]>Oakland, Calif. – As supply issues continue in Shanghai, the Port of Oakland reported a second straight monthly loss in volume for April.
The Port reported today that total volume through April dropped 7% from the same period a year ago. This follows an 11% loss in March. Containerized import loads through Oakland fell 17% in April, while exports sagged 18%.
The Port attributed much of the decline to factory and port shutdowns in China, Oakland’s largest trade partner. The Port said disruption at Shanghai, the world’s busiest port, is delaying U.S.-bound import shipments, and that wreaks havoc on ocean carrier scheduling.
“U.S. exports have been hampered by vessel schedules thrown into disarray in China,” said Port of Oakland Maritime Director Bryan Brandes. “Most of Oakland’s business depends on the Asia-U.S. trade route.”
The Port said Oakland said cargo flow has been affected by additional factors, including:
- A drop in the number of ships stopping in Oakland
- Importers slow to retrieve shipments, thereby crowding container yards and slowing cargo discharge from ships
- A container shortage making it harder to load export shipments
The Port did say however, that it believes supply chain relief could be incoming. Shanghai cargo activity has recently picked up, and the Port is talking to shipping lines about increasing the number of Oakland vessel calls.
“The pace of cargo operations should accelerate as vessel schedules normalize,” said Brandes. “That’s welcome news as Oakland prepares for peak shipping season, which industry experts say will begin earlier this year. Retailers are likely factoring in more time for receiving their goods based on the shipping delays they have been experiencing during COVID.”
The Port of Los Angeles comparatively posted another huge month in April, its second biggest April in its 115-year history, after April 2021.
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]]>Delft, The Netherlands — Ingka Group, majority holder of Top 15 home textiles retailer Ikea, announced that it will continue to pay its Russian staff through August, according to a report by Reuters.
In March, Ikea announced that it was halting operations in the country after it invaded Ukraine. In making the announcement, it noted that it would pay staff in rubles through May. That payment structure has been extended.
“We have managed to prolong that to six months,” Tolga Oncu at Ingka Group told Reuters in an interview. “We keep monitoring, analyzing, looking at what’s happening and will make decisions as we go forward.”
Oncu told Reuters that payments for local wages will come from the utilization of assets Ingka has within Russia.
Reuters notes that Ingka Group has 17 stores in Russia and one distribution center. In its latest fiscal year, Russia was its 10th-biggest market with retail sales of 1.6 billion euros, or 4% of total retail sales.
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]]>Beijing – With mass COVID testing underway in Beijing after an outbreak of the virus, concerns are growing that lockdowns could be implemented.
With Shanghai currently under lockdown and reporting 19,000 new infections in the past 24 hours, authorities in Beijing are being pressured to stamp out the outbreak as quickly as possible. Outside Shanghai and Beijing, more than 20 cities – home to around 30 million people – are under lockdown. Shanghai is home to world’s busiest port.
China is the powerhouse supplier of home textiles constructed of man-made fibers (MMF), which are a staple of the volume retail business.
The city of Beijing is currently undergoing mass testing for nearly all of its 21 million people. One section of the city is locked down, as are certain individual residential buildings.
“As cases erupt in Beijing, there is concern that prolonged lockdowns will hit employment and lead to a sharp slowdown in growth as well as sparking fresh shipping logjams and supply chain issues,” investment analyst at Hargreaves Lansdown Susannah Streeter told BBC.
In less than a week, several economists at major investment banks have cut their expectations for Chinese growth. The country’s “zero-COVID” approach is adding to the worry.
“The stringently enforced zero-COVID strategy causes a big supply shock to the overall economy, especially to cities under full and partial lockdowns,” the Japanese investment bank’s chief China economist Ting Lu said in a report on Wednesday, CNBC reported.
“This supply shock may further weaken demand for homes, durable goods and capital goods due to falling income and rising uncertainty,” he said.
China’s well-equipped factories, highly-trained labor force, and strong logistics will continue keep it in top contention, even despite tariffs.
]]>Missoula, Montana – Visual and tattoo artist Anka Lavriv has teamed up with textile studio Western Sensibility to raise money for Ukraine organizations through a new pillow collection.
Lavriv, a Ukrainian American known for her linework illustrations and tattoos, created two designs for this initiative: Lev and Lybid.
“Lev was inspired by Ukrainian artist Mariya Prymachenko and I love the way her work captures the playfulness of Ukrainian culture,” Lavriv says. “Some people think of folk art as being primitive but I’ve always been drawn to the raw imagination, honesty and directness of the image because it bypasses overthinking or intellectualizing and takes you to the emotion.”
Lybid came about because Lavriv has always been inspired by female birds depicted in Slavic folklore, and sees “them as a symbol of resistance and rebirth. It’s believed that these women birds bring the traditional Ukrainian pysanka painted eggs to heaven as prayers and to me Lybid represents hope for Ukraine’s future.”
Made with a hypoallergenic insert, each pillow measures 20 by 20 inches and features a micro-denier, vegan fiber. All proceeds will be donated to Kharkiv Help and the Ivan Honchar Museum, which is working to collect and safeguard historical and cultural Ukrainian artworks.
“We’re beyond honored to be collaborating with Anka Lavriv on this vital initiative to raise aid for Ukraine,” says Kathryn Sanders, founder, Western Sensibility. “Her ode to Ukrainian folk art deeply moves us and helps us stay focused on Ukraine’s rich culture during this horrific time.”
]]>FRAMINGHAM, Mass. – TJX Cos. has divested its stake in Russian retailer Familia.
The company filed a report with the Securities and Exchange Commission which stated, “Given the recent Russian invasion on Ukraine, The TJX Companies Inc. has committed to divesting its equity ownership in Familia in support of the people of Ukraine. As of March 2, Doug Mizzi and Scott Goldenberg have resigned from their director and observer positions, respectively, on Familia’s board of directors, effective immediately.”
The company said it may recognize an investment loss due to this sale. TJX invested $225 million for a 25% non-controlling, minority interest in privately held Familia in November 2019. Familia, headquartered in Luxembourg, is an off-price retailer of home fashions with more than 400 stores in Russia.
As of Jan. 29, the carrying value of TJX’s investment in Familia was $186 million, which reflects the revaluing of the investment from Russian rubles to the U.S. dollar, resulting in a cumulative translation loss and reducing the carrying value of TJX’s investment by approximately $40 million.
Home furnishings brand Ikea has also paused its operations in Russia and Belarus due to the ongoing conflict.
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