Crisis fears compounded

There are no signs that the turmoil facing the used textile sector is easing. Without resolution, its viability will be at stake.

The used textile industry across the globe is currently grappling with a multitude of challenges that show no signs of abating. The Red Sea crisis has led to skyrocketing freight costs to key markets in East Africa, the Middle East, and the Far East, with prices more than doubling and shipping times extended by about two weeks.

The ongoing war in Ukraine, a crucial European market for the sector, further exacerbates these issues. Additionally, significant currency devaluations in major African markets (some halving in value over the past year) and political instability in several African nations are all severely hampering the flow of goods.

HIGHER COSTS

High wage demands in European Countries make it increasingly difficult to attract and retain sorters and warehousing staff who can find similar but potentially better paid work with big national and international businesses. Furthermore, the proliferation of low-quality textiles from ‘fast fashion’ has increased operational costs and diminished demand in reuse markets, threatening the financial stability of the industry.

This turmoil has significant implications for other industries, particularly given the sector’s role in diverting millions of tonnes of good quality clothing and recycling grades away from incineration or landfill.

COLLECTION CHARGES?

It is vital that textile collectors can continue their operations profitably and sustainably. For this to continue under the current market situation, any revenues that supplier organisations currently receive will have to fall away or even disappear. In some cases, textile collection businesses may have to charge for collections, possibly for the first time ever.

Without these reductions in prices paid by textile collectors they could be forced to stop collections altogether, which in turn could present a severe headache for their partners.  

Textile banks would go unemptied, charity shops left without collections and piles of used textile items would build up in warehouses in Europe and elsewhere. Putting the environmental costs aside, municipalities and charities could be forced to pay waste management companies to simply dump textiles in incineration or landfill.

PARTNERSHIP IS VITAL

To ensure the survival of the textile industry amid current economic and global conditions, a more partnership-based relationship between the supplier partners and textile collection merchants is vital.

Suppliers must understand that the collection service is a critical component of the broader waste management system. Without this recognition, the number of merchants may dwindle, forcing charities and municipalities to seek alternative disposal solutions for public donations.

Such a scenario could have severe repercussions, including the loss of the environmental benefits of reuse and recycling, particularly in terms of lower greenhouse gas emissions and water consumption.

DATA-DRIVEN

National governments and organisations such as the EU and UN must prioritise measures to support the transition to a slower and more circular textiles sector. It is also vital that governments check the credibility of the data sources they use when making policy decisions.

With an increasing body of peer-reviewed research evidence debunking the myth that around 40% of items sent to Africa are ‘waste’, we should not continue to see this statement of pure fantasy ending up in official documents or being repeated in the media.

Instead, we need policy makers to work with our sector, including experts in the global south, to deliver policies that will instil economic confidence in the sector.

That will help to attract the much-needed investment to deliver new recycling markets and ideally new business models that can slow consumption whilst maintaining the economic viability of the textile and fashion production sector.

Read the market analysis section in our latest issue >>