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Australia – market claims on the up

Published: 15 May, 2019

A well respected and long term supplier of hides from Australia reports of his recent troubles following a visit to Chinese tanners. These are also feelings echoed by other suppliers not just from Australia but many supplying origins.

The feeling is that tanners in China have paid what they now feel is above the market price level and are looking to claw back. Claims are being received like never before, and yet after inspection of the raw hides at the tannery no fault can be found, so it’s just a market claim. Even a delivery of casualty hides resulted in a claim, because the hides were too casualty! But, what do you do as a supplier? Either refuse to pay the claim and risk not having another sale to that particular tanner, or reluctantly pay the claim as long as it is attached to a new sale. This is not the correct way to do business, and only creates ill feeling.  

Tanners should do well to remember that this market will eventually turn around. Those that have not played ball in the bad times, will have a red mark against their name in many suppliers books.

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