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Drewry WCI snaps 6-week rally due to ease in freight charge

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Drewry WCI snaps 6-week rally due to ease in freight charge



The Drewry World Container Index (WCI) snapped a six-week rally and eased 2.72 per cent. The index dropped to $2,246 per FEU (Forty-foot Equivalent Unit) for the week ending April 16. The index stood at $2,309 per FEU in the week ending April 9. The six-week rally was initially triggered by higher bunker fuel prices following the late-February conflict in the Middle East. After trending down throughout January and early February, the index spiked due to geopolitical and oil supply disruptions. However, the rally halted amid declining rates on Asia–Europe and Transpacific lanes.

According to the Drewry WCI index, the spot rates from Shanghai to New York and Los Angeles decreased by 3 per cent to $3,552 and $2,810, respectively, per 40-foot container. As per Drewry’s Container Capacity Insight, 9 blank sailings have been announced on the Transpacific trade route for next week to maintain capacity. A few carriers have announced a Peak Season Surcharge (PSS) of around $2,000 per 40ft container, effective May 1. Drewry expects freight rates to remain relatively stable in the coming weeks before the implementation of the announced PSS.

Drewry WCI snapped a six-week rally, falling 2.72 per cent to $2,246 per FEU amid easing freight rates.
Declines on Asia–Europe and Transpacific routes drove the drop, though carriers plan PSS hikes from May.
Despite Middle East tensions, rates are expected to remain relatively stable, with capacity shifts and blank sailings influencing movements.

Spot rates on the Shanghai–Rotterdam trade route decreased 3 per cent to $2,229 per 40ft container, while rates on Shanghai–Genoa fell 2 per cent to $3,343 per 40ft container. Carriers are increasing effective capacity on this trade route, with only one blank sailing announced so far. Meanwhile, ZIM has announced a new bunker factor (NBF) of $850 per container, effective May 1, but for now Drewry expects freight rates to remain stable in the coming week.

Rates from New York to Rotterdam decreased 4 per cent to $1,022 per FEU, while Rotterdam to New York increased 3 per cent to $2,030 per FEU. Rotterdam-Shanghai rose 1 per cent to $599 per FEU, and Los Angeles–Shanghai steadied at $762 per 40-foot container.

The US-led naval blockade around the Strait of Hormuz has halted or restricted ships linked to Iran, with multiple vessels turned back. The disruption has strongly impacted global oil supply chains and pushed oil prices even higher. If ongoing negotiations fail, shippers should prepare for reduced schedule reliability, potential port omissions, longer lead times and upwards pressure on freight rates.

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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