Despite Various Challenges Global Cotton Trade Up 10%: ICAC

Despite various challenges, particularly the Red Sea shipping crisis facing the global textile and garment sector, global cotton trade is up more than 10 percent over last season.

This was revealed by International Cotton Advisory Committee (ICAC) in its February 2024 report.

“Shipping problems are once again plaguing the cotton and textile industry, although not nearly to the degree the supply chain suffered through during the Covid-19 pandemic,” ICAC said.

Finished goods will be affected more than raw cotton, making the situation particularly painful for merchants and mills.

Geopolitical unrest in the Red Sea area has driven shipping prices significantly higher in recent months, with trade routes between West Africa and Asia and between Europe and Asia being impacted the most.

ICAC’s current price forecast of the season-average A index for 2023-24 ranges from 81.02 cents to 103.61 cents per pound, with a midpoint at 90.88 cents.