US Port Strike Impact on Fashion

Happy Thursday!

We’re excited to kick off our newsletter this week with a discussion on what’s going on in the industry. In conversation this week we’ll dive into the recent US Port Strike and the impact on the fashion supply chain.

We’ll also revisit an old topic we’ve analyzed in the past: carbon emission reporting. We’ll close out with a brand spotlight and also share an update on the latest and greatest of companies in the sustainable fashion space.

 Thanks for reading!

Headlines

The recent U.S. port strike, particularly on the West Coast, has had a seismic impact on the fashion industry. As a hub for goods from Asia, where much of the world’s clothing is produced, the strike caused significant delays and supply chain disruptions. Fashion brands, from fast fashion to luxury, faced inventory shortages, missed sales, and skyrocketing shipping costs. For an industry that relies on just-in-time delivery and quick production cycles, the strike was a stark reminder of how fragile these globalized supply chains can be.

But beyond short-term impacts, the strike highlights a deeper sustainability problem. Fashion’s reliance on overseas production not only makes it vulnerable to logistical disruptions but also increases its carbon footprint. As brands faced delays, many turned to costlier, less sustainable solutions like air freight, exacerbating their environmental impact.

This event has brought the importance of sustainability back into focus. Fashion brands have to rethink their supply chains and prioritize responsible sourcing, regional production, and circularity. By focusing on local production, ethical labor practices, and sustainable materials, the industry can become more resilient and  conscious.

Analysis of the Week

Let’s revist an old topic that will become crucial to the future reporting process for many companies.

Carbon accounting is the process of quantifying the number of greenhouse gasses (GHGs) produced directly and indirectly from a business or organization’s activities within a set of boundaries. There are three types of emissions that are classified as follows:

A high-quality carbon footprint represents the total of a company’s greenhouse gas emissions, including Scopes 1-3, and serves as the basis for the company’s emissions reduction goals and progress. Regulatory frameworks in the US, EU, and elsewhere require many companies to disclose their carbon footprint annually.

For many fashion companies, reporting on Scope 3 emissions will be a challenge due to much of the supply chain being outsourced to factories in other countries, not to mention the limited oversight many brands have over their suppliers. However, this reporting will be crucial to hold companies accountable for their impact.

Brand Spotlight

Learn about one of the sustainable brands on Trace’s marketplace!

Check out today’s featured brand: Seeds & Stories

Seeds & Stories seeks to empower rural women through regenerative fashion.

In 2018, the founder, Margarida came across the town of Bigodi in Uganda and learned about the traditional basket weaving practices of the local women artisans. Over the next few years, she learned about the economic and social issues within the community that affected the women, and worked with local community leaders on identifying ways to help the local women and community as a whole develop their economy and find income sources outside of tourism that worked in harmony with nature.

Seeds and Stories is currently focused on developing quality hand-made products that support the livelihoods of women artisans in Bigodi, as well as new training programs that provide skills and environmental knowledge to the broader community.

Seeds & Stories artisans use local raw materials such as palm leaf, millet straws, papyrus, and banana fiber that have regenerative properties in local ecosystems, namely increasing soil fertility and enhancing biodiversity.

Their long-term objectives are to provide sustainable livelihoods for local women, create greater food security, advance gender equality, and promote environmental regeneration.

Innovation in Fashion

Unspun - the world’s first 3D weaving technology for apparel which allows for quick and efficient weaving which reduces lead times and the need for large quantity production batches for apparel, helping the industry reduce overproduction 

Syre - Textile-to-textile recycling company that seeks to hyperscale textile recycling, including polyester 

Spiber - biotech firm developing sustainable solutions such as brewed protein fibers, which are manufactured from plant-based ingredients