USHSLA urges cooperation after ‘significant’ increase in contract issues
The US Hide, Skin and Leather Association (USHSLA) has requested assistance from leather industry colleagues in reminding companies of the importance of contracts after “a significant increase” in the number of “disingenuous actions” taken by market participants.
Price volatility has led to instances of players trying to get out of contracts – as our Leather Pipeline author also notes this week.
USHSLA president Stephen Sothmann said: “Hides and leather markets experience periods of sudden price increases and decreases. It is in the best interests of all of our members if we continuously reinforce the importance of honouring contracts and avoid individual retaliation when the market moves in the opposite direction.”
In a letter sent to industry players, USHSLA adds: “Many segments of the market have experienced sharp declines in prices in the last two months. During this period, reports have increased of negative actions taken by specific companies seeking to renege previously agreed upon contracts in an effort to take advantage of subsequently lower prices available in the market. This is an untenable practice that should not be tolerated by our associations or companies, whether prices are moving upwards or downwards in the market.”
