Monday, April 12, 2010

Import Containers on the Rise - What this Means for American consumers

According to an article in this week’s HomeFashion & Hospitality (http://www.hfftmagazine.com) e-news, retail container traffic is expected to increase 8 percent in April (compared with the same month a year ago). Why is this information of interest to American consumers and artisans in developing countries? Simply, it signals a sign of economic improvement which is great for both global and domestic markets.

According to the monthly Global Port Tracker report released by the National Retail Federation and Hackett Associates, the source the article uses, import cargo volume at the nation's major retail container ports is expected to be up in April and solid increases are expected to continue through the summer as the U.S. economy improves.

U.S. ports handled 1.01 million 20-foot Equivalent Units in February, the latest month for which actual numbers are available. That was down 6 percent from January as shipping hit its traditional slow point for the year but up 20 percent from the unusually low numbers seen during February 2009. It was also the third month in a row to show a year-over-year improvement after December broke a 28-month streak of year-over-year monthly declines. One TEU is one 20-foot cargo container or its equivalent.

This is strong news because as consumer confidence grows and consumer spending increases, imports (via container shipments) increase to meet consumer demand. From a fair trade perspective, as our retailers begin to sell more to American consumers, we, as wholesalers, are able to provide more business to our artisan partners and thereby import more goods.
A recent argument I heard from a friend who is very supportive of the “buy local” movement is that we should favor local artisans and local retailers to help strengthen our economy – not encourage sales of imported products. I could really write a book about this topic but here is how I answered her and where we ended up:

1) Fair Trade is not set up to hurt American artisans. The whole concept of fair trade is to support artisans in developing countries by providing them with a fair wage, healthy and safe working conditions and an opportunity to enjoy the same benefits we have in this country - to send their children to school, to have a home and to feed their families.

2) Often, the items fairly traded are not available in the United States, cannot be produced in the United States, are ethnically significant to their countries of origin or are just different in style/quality, etc. For example, other than coffee and chocolate (for which the raw materials are not produced in the U.S.), the styles of jewelry I import from South Africa are not available by any artisans in the United States. They are not only unique pieces, but the quality and craftsmanship is stunning, too. Is that to say that I’ll not buy an American-made jewelry piece that I am drawn to? Of course not…but does that mean I cannot appreciate and support a piece made by artisans in a developing country because it’s from outside the U.S.? Of course not…it’s just another option.

3) More importantly, I think it’s important to remember that these artisans or no less or better than artisans in the U.S. I love handmade pieces and I go out of my way to support artisans – no matter which country they reside. In fact, my wedding band is handmade by an artisan in Illinois. Most of my jewelry is handmade by artisans – and most from the U.S. Nonetheless, I love my handmade pieces from other countries, too. It makes life interesting!

4) Also, please remember that the retailers who support our jewelry ARE local, independent retailers who you and I support. They have families, too, and want to make the lives for those families better. So you CAN support “buy local” (and, in fact, I would encourage you to do so!) and artisans in both the U.S. and abroad.

5) Finally, I would encourage you to read an article I wrote last year on this very topic in a trade magazine called The Crafts Report: Is Fair Trade Fair To United States Artists: http://www.craftsreport.com/articles/features/77-isfairtradefairtounitedstatesartists.html?

Agree? Disagree? Have something to add? Please do so and engage in the discussion!

Fondly,
Megy Karydes, Founder
World Shoppe
www.World-Shoppe.com