ICHSLTA condemns “unethical” hide contract cancellations and offers to mediate
02/10/2015
ICHSLTA said in a statement that its members have been expressing concern in recent weeks about a slowdown in activity in China and the knock-on effect on hide prices. Hides have become cheaper than they were earlier in the year, leading to a considerable number of contract cancellations.
A typical scenario is for tanners to refuse acceptance of shipments of hides that they bought weeks ago and sourcing from other suppliers instead at current prices, which are cheaper. Tanners argue that hide sellers have done the same in reverse, reselling lots to new buyers at higher prices and cancelling existing agreements when the market was moving in the other direction.
“This is increasing tension between sellers and buyers,” ICHSLTA said. “Companies that have been affected by contract defaults, whether sellers or buyers, can contact the Paris secretariat for advice on mediation and arbitration.”
The organisation said it had the support of the China Leather Industry Association (CLIA) in making this offer to help and added that CLIA chairman, Su Chaoying, joined ICHSLTA in “strongly condemning unethical actions that undermine the international contracts numbers six and seven”.
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