By Richie Lin      Photo：Felix Rottmann

Since joining the WTO in Year 2000, China has become the factory of the world because of the unparalleled power driven by governmental initiatives, substantial labor forces, and foreign investments and technology. It created a most complete supply chain in one single country in the history. No matter what kind of products you want to buy, you can always find a full-fledged supply chain in China, especially in Guangdong, Jiangsu and Shanghai. People in developed world such as USA and European countries are all depending on China to provide their daily products such as clothes, shoes, houseware, furniture, and mechanical products. However, the situation seems totally different after Trump became the president of United States. The supply chain really felt the pressure to migrate out of China after Trump announced the trade war on China and began to increase the duty on products manufactured in China. And the ongoing competition between China and USA pushed those have factories in China to evaluate seriously if they should move or create another factory outside of Chiha if their products are mainly sold in the United States. Therefore, we began to see customers looking for other suppliers in Southeast Asia countries, India or even Mexico. If Chinese suppliers want to keep their businesses with customers in USA, they are forced to establish new factories in another country besides of China. In addition to the Sina-American trade war, the lockdowns and port congestions caused by the Covid-19 in last two years have push customers to think seriously about the near shoring their supply chain in order to get closer to their consumers. Suppliers and buyers all face the challenge of multiple points of origin and multiple points of consumption. They need an all-around logistics provider to provide logistics from multiple countries to multiple countries including pick up, customs clearance, freight forwarding, warehouse management and last mile door delivery. This logistics company must have full-fledged data, knowledge, experiences and networks to provide such a complicated cargo movement. Furthermore, a total logistics provider must also have well-designed IT system to provide 24 hours online tacking to track each purchase order transparently, and VMI to provide real time products in/out and inventory in different warehouses. Supply chain will be more and more complicated because China can no longer be the only manufacturing site in the world and the consumption will take place in several countries. Customers must utilize total logistics providers to optimize the flow of goods from the multiple points of origin to the multiple points of consumption in the future.

FCL market rate reference in week 20:

• Asia main ports to USAWC USD 1500~1700 per 40GP; 
• Asia main ports to USAEC USD 2500~2700 per 40GP; 
• Asia main ports for IPI points of USA is USD 4000~4500 per 40GP. 
• Asia main ports to Europe base ports and West Mediterranean: USD 2000~3500 per 40GP.

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