Competitors of used clothing exports have weakened, which is related to the increase in freight rates of the Suez Canal

Africa is the best choice for the export of used clothes. About 15 million pieces of used clothes flow into Ghana every week from Britain, Europe, North America and Australia. These arrived old clothes should be classified, repaired and resold throughout Africa. Part of the old clothes are flooding the huge old clothing market in Accra, the capital city - Cantamanto market. Europe began to export used clothes as early as after World War II. Due to the similarity of African and European body shapes, used clothes exported from Europe are more popular than those from China, dividing up the market to a certain extent.

According to media reports, Egypt's Suez Canal Authority issued a statement on the 17th that it will raise the ship tolls of the Suez Canal, one of the most important waterways in the world, in January 2023. The statement said that from January next year, the tolls for cruise ships and vessels transporting dry bulk cargo will be increased by 10%, and the tolls for other vessels will be increased by 15%. The Suez Canal is the main transport road connecting Europe, Asia and Africa. That is to say, the freight adjustment of the Suez Canal will increase the cost of used clothes transported to Africa by European used clothes exporters.

In China, the volatility of the epidemic situation has led to the weakening of the residents' economy, which has reduced the frequency of buying new clothes and reduced the recycling of old clothes. However, the reduction of the recycling of old clothes has weakened the demand for marine export transport capacity, weakened the demand for container containers, and thus the sea freight has begun to decline significantly, although it is far from the previous minimum, However, it still reduces the cost of exporters to a certain extent, which will make the funds of exporters less tense.

Therefore, at the moment when the Suez Canal increases the freight, it is bound to make Europe, whose economy is already weak, feel further economic pressure, and may reduce the number of used clothes they export to a certain extent. That is to say, in the African market, the choices available to African people will be appropriately reduced. Previously, the Chinese used clothes were loved by Africans because of their high quality and low price. Now, the increase in European costs may lead to a decrease in the import of used clothes, which will reduce the competition of Chinese used clothes in the African market.

Judging from the recent series of measures and situations, the used clothing market is really changing rapidly, and we never know what will happen next. Therefore, I suggest that all businesses should pay attention to the information related to the used clothing industry in a timely manner to seize the opportunity.