Fortune 500 CH Robinson sees more sourcing diversification in 2020
US FORTUNE 500 company CH Robinson, the multimodal Minnesota logistics provider sees continuing diversification of sourcing away from China in the coming year, says company global forwarding chief Mike Short
US FORTUNE 500 company CH Robinson, the multimodal Minnesota logistics provider sees continuing diversification of sourcing away from China in the coming year, says company global forwarding chief Mike Short.
'While there may be an end in sight to some of the trade war uncertainties, the initiative to broaden sourcing locations beyond China will likely continue,' he said in his 2019 review and forecast on the CH Robinson website.
'Southeast Asia has already seen clear benefits of this and will likely continue to see manufacturing growth in 2020. Switching sourcing strategies can also bring risks, including capacity availability, infrastructure support, and geopolitical stability,' Mr Short cautioned.
'While China will continue to be the largest exporter into the United States, we simply cannot deny the trends that continue to show volume shrinkage from China,' he said.
Last month a secret survey by Hong Kong's Freightos of the world's top 20 forwarders found that CH Robinson led he pack ahead of Kuehne + Nagel, DHL and DB Schenker with the best user experience and ease of use.
Mr Short also predicted significant investment in technology and transportation platforms to accelerate across the industry. These growing technological investments will continue to create value across the supply chain.
CH Robinson is a provider of multimodal transportation services and third-party logistics (3PL). The company offers freight transport, transport management, brokerage and warehousing. It offers truckload, less than truckload, air freight, intermodal, and ocean transportation.
Mr Short warned shippers that ocean carriers are quick to withdraw capacity when demand changes. 'By adjusting the amount of equipment available, ocean carriers are better able to ensure demand remains tight enough to protect their profits,' he said.
He noted the technique enjoys greater success today because there are fewer ocean carriers than in the past, allowing for a quicker reaction when supply and demand shifts.
CH Robinson is based in Eden Prairie, MN, with more than 300 offices and over 15,000 employees in North America, Europe, Asia, and South America. The company has contractual relationships with over 66,000 transportation companies, including truckers, railways, air freight, and ocean carriers.