China plus one is for real. In multiple categories of commodity China's share of US imports is falling as a range of companies from retailers to CPG seek to diversify supply chains to mitigate risk. This is occurring despite often higher costs and extensive reworking of origin supply chains that need to overcome obstacles such as port congestion and challenged infrastructure in Asia that shippers rarely encountered when sourcing from mainland China. The extent of such difficulties is actually leading some companies to switch sourcing of certain goods back to China. The chart below citing S&P Global data shows what's happened with printers, illustrating a trend that was under way well before Covid-19 and the rise of US-China geopolitical tension in recent years.
"The containership market is in the midst of major changes," including "shifts in trade patterns due to increasing international tensions,” Ocean Network Express said in its fiscal first quarter earnings released on July 31.
With a global focus inclusive of supply chain issues at origin, TPM24 will explore the implications of China plus one, emerging as arguably the most important theme in international logistics today.
For example, sessions at TPM Academy, an educational track open to all registrants, will be devoted to understanding the basics of key emerging sourcing countries such as Vietnam.