Leatherbiz Market Intelligence - Signs that point to shorter supply chains
22 July 2021

A new Leatherbiz Market Intelligence electronic newsletter, which our exclusive Leather Pipeline report, became available on July 20. This latest edition reports that, in Europe at least, with the summer holiday just around the corner, most players in the leather industry have “resigned themselves to an almost completely stable situation” that is likely to endure until the end of August.

In Asia, though, tanners are already having to think about the busy season that lies ahead in the second half of the year. Their planning, necessarily, includes sourcing raw material and, in addition to rising prices, the report says time also plays a crucial role now. “It is very difficult to meet guaranteed delivery times because international logistics carriers no longer accept any liability,” it says. “Delayed shipment means delayed payment and, in some cases that we have heard of, there have already been cancellations of contracts for goods loaded into containers waiting in port for shipment.”

Another factor is sustainability, which is never far from business leaders’ thinking but comes more intensely into focus after announcements such as the one that the European Commission made last week about cutting carbon emissions.

Considering both of these big questions together, the report concludes that there can really only be one conclusion: “namely that supply chains must definitely become shorter wherever possible”.

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