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The outbreak is likely to have a long-term impact on the supply chain

Source : Shanghai SunGreen|Release Time : 2020-03-25| Hits : Loading ...

  The disruption of the supply chain caused by the closure of Chinese factories may lead to greater changes, and moving manufacturing closer to consumers will reduce the demand for transportation. Shippers and third-party logistics companies are seeing a return of more local manufacturing as New Crown Pneumonia shows the fragility of just-in-time logistics models.

  The principals of major third-party logistics organizations in the United States said that the impact of the new crown pneumonia epidemic could be a catalyst to promote wider reorganization of the supply chain. At the Canadian Freight Logistics Conference in Vancouver, Bob Waltman, CEO of the Transportation Intermediaries Association, told Lloyd's Daily: "This is the second time this has happened in China. What we have seen this time The situation is different from SARS in 2003. We have seen air travel stopped. In the United States, we are isolating passengers. This gives us a huge opportunity to reinvest the supply chain into the North American market. "

  Mr. Waltman said: "The ratification of the US-Mexico-Canada Agreement (USMCA) to replace the North American Free Trade Agreement (NAFTA) will also help to invest more in manufacturing in the United States than in Asia. China's population Declining. In a country with an economic growth rate of 6%, the one-child policy makes sense. Because of this, in the long run, China will start to become like Japan, richer but with a declining population. Therefore, cheap Manufacturing will move from China to Southeast Asia. But I think you will see closer sourcing. If you sell products in North America, you will produce here. "

  Mr. Waltman said, "The increase in U.S. oil and gas production will result in more chemicals and plastic products being produced in the United States, and these products will be used in local manufacturing. We also have Mexico near us, where labor costs Much lower, and transportation costs by rail and truck to the United States and Canada are much lower. I do see North American manufacturing reviving. "

  Magali Amir, the transportation manager of French sportswear brand Decathlon in Canada, told Lloyd's Daily that this new crown pneumonia has affected the company's imports. "Our factory in China is closed, and containers there should have been in Canada. It has put pressure on the supply chain and stores, so diversified sources of purchase will be important in the future," Ms. Amir said. Amir said, "Environmental protection issues also promote the importance of close-range procurement. It is important that manufacturing industries produce as much as possible in large consumer countries. Customers also want to produce locally."