Durban, KZN, SA - The cost of sea freight from China to SA has risen, and has been compounded by a shortage of space, according to component suppliers in China.

In an email today to upper material wholesaler A. Greenaways (Natal), a supplier in China wrote: “The goods are ready, but can’t catch a ship this week. We can ship it next week. But now sea freight is crazy high – it is about USD6000 for a 20ft container.”

On 13 May, a supplier warned Greenaways: “Please be aware that the sea freight for next week’s vessel has risen to USD3250 per MSK 20' GP. COSCO will be USD3730 – the ship space is a bit cramped too.

“P.S. The freight costs for various shipping routes are skyrocketing. The cargo for our Peruvian clients, which previously cost less than 2000 for sea transport, is more than 5000 this week.”

On 22 May, the same supplier wrote: “I regret to inform you: this container was originally scheduled to be loaded in warehouse today, but last night the freight forwarder informed me that the shipping company refused to release our container due to insufficient space... The freight forwarder is helping us find new space today, but the shipping schedule is still uncertain... Moreover, the price will also be a big problem, prices are rising every day now, and there's no guarantee [that there will be space]. This will have a significant impact on the subsequent shipment of goods, and it may be difficult to improve in the short term.”

The reason for the shortage of space and the rise in prices was because Chinese companies were diverting shipping to South America, he wrote.

“The recent increase in shipping costs may be related to the following reasons. The price increase on all routes this time mainly started from South America. The reason for the price increase in South America is primarily due to Brazil imposing additional tariffs on new energy vehicles from China after July. New energy vehicle companies are accelerating the export of vehicles to South America. In addition, the United States has announced future additional tariffs on China, leading to some Chinese companies increasing their investment in South America. Shipping companies are facing a significant shortage of capacity, causing some African routes to be redirected to South America, resulting in a lack of capacity in Africa and a general increase in shipping costs. Another major factor is that shipping companies intentionally reduce ship capacity, the insufficient number of available seats has led to a significant increase in prices.” 

Durban, KZN, SA – The industry is very quiet at the moment. Customers tell me that the chains are holding back until after the elections, and that come June and July, there will be good orders. I certainly hope so.

Something which disturbs me, and I’m not a shopper, is that the shoe areas in most apparel chains seem to be much smaller than they were. I don’t know whether that’s my imagination or not. 

The Tanning wage negotiation took place on 14 and 15 May. “The parties were unable to reach agreement after 2 rounds of wage negotiations,” Gerald Naidoo, general secretary of the National Bargaining Council of the Leather Industry of SA, said on Friday. “The parties agreed to meet again on 10 June as an attempt to reach agreement and should no agreement be reached then the matter will be a conciliation by a CCMA commissioner.”

Footwear negotiations resume this week. 

East London, E. Cape, SA – Glen Puttergill, formerly of Glen’s Shoes, died on 01 March 2024, aged 79. An obituary will follow in the May issue of S&V Footwear & Leather Goods.

Pinetown, KZN, SA – Leo Vandenheede, formerly of last maker Fanci-Form, died last Wednesday, 15 May, aged 55, of multiple organ failure, after a long illness. An obituary will follow.

Pretoria, Gauteng, SA – The International Labour Organization (ILO) has partnered with the Department of Trade, Industry & Competition (DTIC) and the Companies & Intellectual Property Commission (CIPC) to research illicit and illegal trade in counterfeit footwear and leather goods with a view to reducing them and bring relief to the sector in South Africa, Nii Moi Thompson, chief technical advisor of the ILO’s Productivity Ecosystems Project South Africa said in Durban last week during the ARSUTORIA Leather & Footwear workshop, which the ILO sponsored.

“The aim of the study is to help strengthen the local leather, footwear and leather goods value chain,” he said. “We got involved following a request from the DTIC as part of our collaboration in the project.

“The findings from the study will inform further interventions by the government, in collaboration with the ILO, to create a level playing field for South African manufacturers while plugging tax loopholes from illicit trade.”

He said the study is being spearheaded by Dr Jaywant Irkhede, director, leather & footwear, at the DTIC.