Industry’s decoupling from China is set to continue to the end of the decade, according to today’s emerging markets logistics index by Agility bongdaso mobile Transport Intelligence (Ti), with “clear winners bongdaso mobile losers” emerging.
In a survey of more than 550 trade bongdaso mobile logistics industry professionals, 54% said they intended to move a part of their production bongdaso mobile/or sourcing out of China by 2030 – a 16.6% increase on last year’s survey response.
“A very clear indication that logistics professionals are trying to balance risk bongdaso mobile reward in an era of volatility,” it said.
Of them, 14.2% cited the China-US trade war as the primary reason for the move, bongdaso mobile more than 80% of all respondents considered the impact of tariffs on their supply chains to be significant (47.3%), or very significant (34.5%).
“Companies dependent on Chinese manufacturers will face higher costs bongdaso mobile could accelerate the trend toward regionalised supply chains. In this instance, smaller firms may struggle to adapt to these disruptions, leading to consolidation,” it said.
Further, 11.7% cited rising labour costs as their primary reason to move away from China; 11.3% blamed increased domestic regulation bongdaso mobile 10.7% said it was simply to diversify their supply chains.
“As [China] transitions from low-cost manufacturing to a more sustainable bongdaso mobile better regulated economy, businesses are feeling the pinch,” explained the report.
“Combined with heightened global scrutiny, many companies see this as a tipping point, prompting them to diversify or relocate their operations to regions offering cost savings, less-stringency, bongdaso mobile geopolitical stability,” it added.
However, China’s scale, expertise, bongdaso mobile infrastructure – difficult to replicate elsewhere – mean companies will likely “maintain access to China for its efficiency bongdaso mobile move to other regions for resilience”.
The survey examined the inflow bongdaso mobile outflow of investment into regions to understand where companies were relocating to, bongdaso mobile found North America the top beneficiary of reshoring trends with +12.9%, “driven by proximity to end markets, strong infrastructure, bongdaso mobile supply chain resilience needs”.
Sub-Saharan Africa gained traction with +9.9%, “because of its low costs, abundant resources, improving infrastructure, bongdaso mobile growing bongdaso mobile untapped ecommerce market”. South-east Asia saw +4.9%, Latin America +2.7%, bongdaso mobile Europe “remained stable” at +0.4%.
Surprisingly, traditional hubs were facing challenges, it said, bongdaso mobile India reported the largest net outflow, of -31%, “driven by rising costs, regulatory hurdles, bongdaso mobile infrastructure issues”.
Indeed, 18.3% of respondents cited “corruption” as the biggest barrier to investment in India, an increase of 3% on last year’s survey – “enough to suggest the problem is chronic, rather than acute. How that is tackled remains to be seen”.
bongdaso mobile 16.4% said “bureaucracy bongdaso mobile red tape” was the most off-putting factor against investing in India, bongdaso mobile 11.4% reported high tariffs.
MENA also saw a net outflow of -4.7%, “reflecting geopolitical risks bongdaso mobile the fact that it doesn’t compete effectively with other production hubs”.
The report summed up: “The data shows an industry that is intent on diversification bongdaso mobile adaptation. Emerging regions like Sub-Saharan Africa bongdaso mobile Latin America are capitalising on their untapped potential, while conventional hotspots such as North America bongdaso mobile Europe maintain stability.
“On the whole, the global supply is rebalancing, with some clear winners bongdaso mobile losers emerging.”
Source: https://theloadstar.com/clear-winners-bongdaso mobile-losers-as-global-supply-chains-are-rebalanced/
At the inaugural Global Air Cargo Summit, held in Antalya, Türkiye, the International Civil Aviation Organization (ICAO) forecasted that air freight volumes will grow by an...
The imposition of new U.S. tariffs on foreign-made vehicles bongdaso mobile components is causing significant disruptions in the global automotive supply chain. Airfreight, often a linchpin...
Global trade uncertainty is prompting air cargo shippers bongdaso mobile freight forwarders to favor short-term contracts over longer-term agreements, as highlighted in a recent Xeneta...
U.S. plans to end tariff-free access for low-value shipments from China bongdaso mobile Hong Kong, coupled with a new 145% tariff rate on Chinese imports, are projected to slash over...
Trade groups warn of higher ocean shipping costs bongdaso mobile disrupted supply chains, while U.S. officials argue the policy aims to strengthen domestic shipbuilding bongdaso mobile enhance economic...
Since January, the Trump Administration has announced bongdaso mobile delayed multiple tariffs on imports from Canada bongdaso mobile Mexico, further destabilizing the cross-border freight market....
As global supply chains adjust to post-pandemic realities bongdaso mobile shifting trade dynamics, the air cargo industry in the Asia-Pacific (APAC) region finds itself at a pivotal crossroads.
Global tonnage improved +3% in week 15 (April 7-13) after the previous week’s drop of -7% as markets that had closed for the Eid-al-Fitr holiday came back on stream, but comparison...
E-commerce continues to be a key growth driver for air cargo, fueled by rising consumer demand bongdaso mobile the rapid expansion of emerging markets, even as regulatory barriers increase.
The International Air Transport Association (IATA) has maintained a positive outlook for air cargo, emphasizing that the majority of global trade remains unaffected by the...
en