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Comment: High freight, hard rules shape sourcing's new reality

18 Nov '25
2 min read
Comment: High freight, hard rules shape sourcing's new reality
Pic: Shutterstock

Insights

  • Freight costs and stricter regulations are reshaping sourcing margins, pushing brands to prioritise suppliers that manage elevated logistics charges and provide verifiable product data.
  • Investment is shifting towards tech-enabled manufacturing in Asia and emerging African hubs, while steady global retail demand is supporting cautious yet strategic capacity moves.

Freight, rather than fashion, is shaping today’s sourcing margins. On Asia–Europe routes, spot container rates rose about * per cent in October to roughly $*,*** per forty-foot box, while Mediterranean lanes jumped ** per cent as carriers pushed November general rate increases ahead of contract negotiations. 

As logistics costs reset, regulation is tightening in parallel. From ****, garments sold in the EU will need digital product passports under the Ecodesign framework, detailing composition, durability and recyclability. Extended producer responsibility schemes will add further compliance and data-management costs across global supply chains. Sourcing directors are converging on the same question: which suppliers can both absorb elevated freight charges and deliver verifiable product information at scale?

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