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Drewry WCI jumps 16% on Transpacific & Asia-Europe rate hikes

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Drewry WCI jumps 16% on Transpacific & Asia-Europe rate hikes



The Drewry World Container Index (WCI) surged 16 per cent to $2,257 per 40-foot equivalent unit (FEU) for the week ending January 8, 2026, according to Drewry’s weekly WCI report.

The index recorded a sharp increase, mainly due to rate hikes on the Transpacific and Asia–Europe trade routes.

Drewry’s World Container Index jumped 16 per cent to $2,257 per FEU in the week ending January 8, 2026, driven by sharp rate hikes on Transpacific and Asia–Europe routes.
Spot rates rose strongly from Shanghai to Europe and the US amid higher FAK charges.
However, rising capacity and soft Asia–US volumes suggest the surge may be short-lived.

Spot rates on the Shanghai–Genoa route increased 13 per cent to $3,885 per 40-foot container, while those on Shanghai–Rotterdam rose 10 per cent to $2,840 per 40-foot container. This upward momentum was driven by higher Freight All Kinds (FAK) rates implemented by carriers.

Spot rates from Shanghai to Los Angeles surged 26 per cent to $3,132 per 40-foot container, while rates from Shanghai to New York climbed 20 per cent to $3,957 per 40-foot container.

Rates from New York to Rotterdam remained steady at $966 per FEU, while Rotterdam to New York increased 2 per cent to $1,685 per FEU. Freight rates on the Rotterdam–Shanghai route rose 3 per cent to $504, while Los Angeles–Shanghai rates increased 1 per cent to $721 per 40-foot container.

Container shipping capacity rose 7–10 per cent month on month on both Asia–North American routes and 5–7 per cent on Asia–North Europe/Mediterranean routes in January. However, anecdotal evidence points to soft volumes from Asia to the US, suggesting these sharp increases appear opportunistic and are unlikely to be sustained.

Fibre2Fashion News Desk (KUL)



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US cotton acreage seen falling to decade low in 2026: CoBank

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US cotton acreage seen falling to decade low in 2026: CoBank



US cotton planted area is projected to decline for a second consecutive year in 2026, with acreage expected to fall to 9 million acres, down 3 per cent year on year and marking the lowest level in more than a decade, according to CoBank analysis. The outlook reflects subdued price competitiveness relative to alternative crops and shifting producer economics ahead of spring planting decisions.

Regional adjustments are anticipated to drive the contraction. Cotton acreage across the southern United States is expected to transition towards soybeans amid improved profitability prospects, while irrigated cotton areas in the Plains are likely to shift towards corn production as producers rebalance crop rotations and manage input cost pressures, CoBank said in an article by Tanner Ehmke and Emmie Noyes.

Slower US cotton export momentum to China, intensifying competition from Brazil and Australia in global markets, and continued substitution by manmade fibres have collectively restrained price recovery, limiting growers’ willingness to expand cotton area.

US cotton planted area is forecast to decline for a second straight year to about 9 million acres in 2026, down 3 per cent year on year, reflecting weak price competitiveness.
Acreage shifts towards soybeans and corn, slower exports to China, rising competition and fibre substitution are weighing on plantings.
Meanwhile, farm support payments are expected to stabilise the overall acreage decline.

Despite the projected decline, policy mechanisms are expected to provide a degree of support. Base acreage payments under farm support programmes are likely to cushion the adjustment, helping stabilise cotton plantings and preventing a sharper contraction in the 2026 season.

Fibre2Fashion News Desk (SG)



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Create Garment Trading Adjudicator: Researchers tell UK govt

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Create Garment Trading Adjudicator: Researchers tell UK govt



Researchers have called on the UK government to establish a Garment Trading Adjudicator to tackle unfair purchasing practices in the fashion supply chain, following new evidence of widespread malpractice in garment manufacturing.

The recommendation follows a survey analysed by researchers from the University of Nottingham and the University of Leicester in collaboration with trade justice charity Transform Trade, which found systemic late payments, last-minute order changes without compensation and post-contract price reductions. Manufacturers reported that such practices shift financial risk from brands and retailers onto suppliers and ultimately workers.

Among respondents, 31 per cent reported order cancellations, while 78 per cent said brands failed to cover costs of last-minute changes to confirmed orders. A further 75 per cent stated prices were not adjusted to reflect minimum wage increases. Additionally, 67 per cent experienced order volumes being reduced without corresponding revisions to unit costs, and 44 per cent faced repeated payment extension requests. Ten per cent reported payments delayed by more than three months beyond agreed terms.

Researchers are urging the UK government to establish a Garment Trading Adjudicator after a survey by the University of Nottingham, University of Leicester and Transform Trade found widespread unfair purchasing practices in UK garment manufacturing.
The study highlights systemic late payments, cancellations and cost pressures affecting manufacturers and workers.

Manufacturers said these pressures had direct workforce consequences, including increased overtime to meet sudden order spikes for 73 per cent of workers, reduced hours following cancellations for 58 per cent, and job terminations for 29 per cent.

The survey also revealed limited confidence in formal dispute mechanisms. Only 22 per cent viewed the legal system as a viable route for redress, and none considered government or multistakeholder initiatives effective. Respondents cited financial and legal barriers, stating that pursuing action against brands was often unaffordable.

Dr Sabina Lawreniuk of the University of Nottingham’s School of Geography said, “Our research shows that current brand purchasing practices directly impact workers, resulting in precarious and insecure work across UK factories. Voluntary codes have proven insufficient. If we are serious about protecting workers and supporting a sustainable UK fashion industry, we need a Garment Trading Adjudicator to enforce fair practices across the sector.”

She added that the findings emphasise the need to rebalance relationships between brands and fashion manufacturers in the UK to support domestic manufacturing, sustainable business models, investment strategies, and to strengthen work and employment in the sector.

Professor Nikolaus Hammer of the University of Leicester also highlighted the importance of rebalancing these relationships to ensure sustainable UK production.

The researchers and Transform Trade said a sector regulator, like the Groceries Code Adjudicator, could help curb unfair purchasing practices and create greater accountability across fashion supply chains.

Fibre2Fashion News Desk (CG)



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New Zealand’s apparel imports ease down to $101 mn in Jan 2026

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New Zealand’s apparel imports ease down to 1 mn in Jan 2026



New Zealand’s apparel imports (HS ** and ** combined) declined to NZ$***.** million (~$***.* million) in January **** from NZ$***.** million in January ****, representing a *.* per cent year-on-year decrease. In volume terms, shipments fell to **.** million units from **.** million units, reflecting softer sourcing activity and continued inventory discipline among retailers.

Knitted apparel (HS **) imports declined to NZ$**.** million (~$**.* million) in January **** from NZ$**.** million in January ****, down *.* per cent year on year. Volumes also fell to **.** million units from **.** million units, suggesting weaker replenishment demand and continued emphasis on controlled inventory cycles across the retail segment.



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