Reverse logistics: U.S. outbound secondhand clothing shipments remain strong
Patrick Burnson, Executive Editor -- Logistics Management, 12/1/2008
CLIFTON, N.J.—While the global economy continues to falter, one bright spot for U.S. exporters has been the demand for second-hand clothing, according to Eric Stubin, president of Trans-Americas Trading Co.
“After one of the most difficult second quarters in recent memory, many U.S. exporters—including secondhand clothing exporters—were strategically planning ahead for third and fourth quarter accounting for continued lack of space and equipment,” he said in an interview with LM. “However, most of us did not experience these anticipated difficult conditions.”
Instead, said Stubin, more available containers and chassis has made it easier for exporters to mitigate the impact of a stronger dollar and keep goods flowing.
“As president of SORT, (Shippers of Recycled Textiles Shipper’s Association), I know our members’ businesses were among the first to feel the effects of a currency shift,” he said. “Our products became more expensive for our international clients, many of who sell our clothing in pegged to the Euro and various Latin American currencies.”
Initially, said Stubin, it did indeed cause a “slight cooling effect” on the previous high demand for SORT products.
But these factors—as well as decreased general container volume in the Asia to Europe trade lanes—helped to restore a balance of equipment as carriers provided vessel capacity for U.S. exports in the fourth quarter.
“As a consequence, most of our members were able to ship without significant headaches or delays in the past few months,” said Stubin.
He also noted that many SORT members located in Houston are now able to obtain equipment and bookings that had been unavailable earlier this year.
“In addition, bunker fuel surcharges have begun to decrease, which helped to keep costs for delivered goods down slightly for international buyers at this time,” he said.
According to Stubin, SORT members are having a strong fourth quarter because they are able to take advantage of a relatively weak dollar and yet find more transport resources to move product.
“This relative discount is acting as a lubricant to some of the gears turning the large economic machinery and seems to be one of the few areas with positive momentum at the moment,” he said.
Stubin also observed that SORT members are certain to be tracking the dollar, developing market economies, and world commodity pricing, as these will all play major roles in determining the future of the U.S. secondhand clothing export industry in 2009.
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