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Drewry WCI rises for sixth consecutive week, Hormuz a concern

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Drewry WCI rises for sixth consecutive week, Hormuz a concern



The Drewry World Container Index (WCI) further increased by 0.96 per cent. The index rose to $2,309 per FEU (Forty-foot Equivalent Unit) for the week ending April 9, marking the sixth consecutive weekly increase. The index stood at $2,287 per FEU in the week ending April 2. The upward trend of the index was mainly driven by rising rates on the Transpacific and Transatlantic trade routes.

Spot rates from Rotterdam to New York jumped 25 per cent to $1,968 per 40ft box this week, breaking the usual trend of stability on the Transatlantic. The primary catalyst for this increase is a 13 per cent MoM contraction in available ocean capacity for April.

Drewry’s WCI increased 0.96 per cent to $2,309 per FEU, marking its sixth straight weekly rise, driven by strong Transpacific and Transatlantic rates.
Capacity constraints and rising bunker costs supported the uptrend, while Asia–Europe lanes softened.
Ongoing Hormuz uncertainty and fuel disruptions are likely to keep freight rates elevated.

On the Transpacific route, spot rates from Shanghai to New York increased 7 per cent to $3,671 per 40ft container, while those to Los Angeles rose 9 per cent to $2,910. Maersk is seeking US regulatory approval to waive off the 30-day notice period and to introduce an emergency bunker surcharge, citing elevated and volatile fuel costs amid tensions in the Middle East. The proposed surcharge is $200 per TEU for head-haul and $100 per TEU for backhaul dry shipments. With carriers continuing to push for rate increases, Drewry expects spot rates to increase further in the coming weeks.

Spot rates on the Asia–Europe trade declined this week, with those on Shanghai–Genoa falling 3 per cent to $3,420 per 40ft container and on Shanghai–Rotterdam decreasing 9 per cent to $2,308 per 40ft container. According to Drewry’s Container Capacity Insight, only one blank sailing has been announced for next week on the Asia–Europe trade, indicating relatively stable capacity.

Rates from New York to Rotterdam increased 6 per cent to $1,063 per FEU, while Rotterdam to New York increased 25 per cent to $1,968 per FEU. Rotterdam-Shanghai declined 2 per cent to $592 per FEU, and Los Angeles–Shanghai grew 3 per cent to $762 per 40-foot container.

A temporary two-week ceasefire in the Strait of Hormuz has allowed some shipping activity to resume, but the situation remains uncertain. Vessels are required to coordinate transit with Iranian authorities, and since no clear guidelines are available yet along with proposed transit fees, carriers are proceeding cautiously. The immediate focus is on clearing ships already stuck in the Persian Gulf rather than sending new ones in.

At the same time, disruptions to oil flows, which account for nearly 20 per cent of global supply through the strait, are ongoing and may take months to fully normalise. This continues to squeeze bunker fuel availability, which is expected to keep freight rates elevated in the near term.

Fibre2Fashion News Desk (KUL)



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UGG boots that last 15 years: Inside Deckers’ strategy

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UGG boots that last 15 years: Inside Deckers’ strategy



Kenneth Straka, Senior Product Development Manager at Deckers Outdoor Corporation, said that Deckers places strong emphasis on sustainability, noting that founder John Luke often reminded the team that the French word for sustainability is durability. This idea aligned with discussions at the Global Fashion Summit, where the theme centred on “Building Resilient Futures” in the sustainable and circular economy.

Durability has helped UGG become one of the most sought-after boot brands and a key sales driver for Deckers, alongside its sportswear brand Hoka. “One of the things we think about in terms of circularity is making products that last a long time and remain with consumers throughout their lives. We want products that consumers can wear for ** or ** years,” Straka said in an interview with Fibre*Fashion on the sidelines of the Global Fashion Summit in Copenhagen.



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South India cotton yarn sees mixed trend, prices up in Tiruppur

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South India cotton yarn sees mixed trend, prices up in Tiruppur



In the Tiruppur market, cotton yarn prices increased by ****;** per kg in this week despite sluggish local demand. Prices were quoted higher because of limited supply from spinning mills. A trader from the Tiruppur market told Fibre*Fashion, “Domestic demand remained limited, but spinning mills are not relying solely on the domestic market for cotton yarn sales. They are focusing more on exports, where demand and prices remain attractive. Mills have raised yarn prices following higher ICE cotton prices and the CCI’s increase in auction base prices, although ICE cotton has witnessed a sharp decline over the past two days.”

In Tiruppur, knitting cotton yarn prices were noted as: ** count combed cotton yarn at ****;****** (~$*.***.**) per kg (excluding GST), ** count combed cotton yarn at ****;****** (~$*.***.**) per kg, ** count combed cotton yarn at ****;****** (~$*.***.**) per kg, ** count carded cotton yarn at ****;****** (~$*.***.**) per kg, ** count carded cotton yarn at ****;****** (~$*.***.**) per kg, and ** count carded cotton yarn at ****;****** (~$*.***.**) per kg.



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RMG trade bodies seek policy support from Bangladesh PM

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RMG trade bodies seek policy support from Bangladesh PM



Representatives of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) recently met Prime Minister Tarique Rahman and urged him to ensure uninterrupted power and energy supply, quick release of export receipts from banks, reopening of closed factories and easing of customs regulations.

BGMEA president Mahmud Hasan Khan said they discussed export diversification within the garment sector, reopening of closed factories and many factories’ struggle for survival.

Representatives of two top Bangladesh garment trade bodies recently met PM Tarique Rahman and urged him to ensure uninterrupted power and energy supply, quick release of export receipts from banks, reopening of closed factories and easing of customs regulations.
BKMEA raised concerns about misuse of the bond facility and urged action against violators of bond licences.

104 factories have informed the BGMEA about their closure till now, Khan said. BGMEA will scrutinise these cases to identify the genuine reasons for the closures.

Following the scrutiny, the association will send recommendations for reopening these factories, as the government is working to open a Tk 200-billion fund to assist their revival.

BKMEA president Mohammad Hatem said some 400 factories closed in the last three years—nearly 300 of them due to non-cooperation from banks. He said banks release export receipts to exporters’ lien accounts, but delays in payment often force loans into default, leaving exporters unable to pay suppliers on time.

He also demanded uninterrupted supply of power and gas to industrial units as recent shortages of fuel oil have severely affected productivity, according to domestic media ooutlets.

Hatem raised concerns about misuse of the bond facility and urged action against violators of bond licences.

He also called for easing the rules of the National Board of Revenue, particularly customs procedures, to smoothen export and import processes and reduce lead times.

Fibre2Fashion News Desk (DS)



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