Shipping & Freight News

In today’s interconnected global economy, geopolitics play a major role in the ways businesses choose to source their goods. The complexities of international trade are unavoidable for companies reliant on imports from countries like China. With an increased trend toward tariffs on Chinese products and other international imports, these dynamics have a profound impact on sourcing practices in the global supply chain.

China has long been a manufacturing powerhouse, offering businesses competitive pricing, efficient production, and access to a vast array of goods. Successfully sourcing from China requires careful navigation of cultural, linguistic, and logistical barriers. For companies new to importing, or even seasoned players looking to refine their operations, having a local presence for supplier vetting, factory audits, and quality control can be invaluable. Companies such as CPG Sourcing have emerged to fill this crucial role.

“We help clients vet manufacturers to see if we can get better quality and a better price for the products they’re sourcing, but we also help clients who are new to sourcing in general,” explains Jessie Alterman, who helms Operations and Insights for CPG.

With transit times from China to the U.S. averaging four to six weeks by sea—and significantly shorter by air freight at a much higher cost—timing and cost management become critical considerations for importers. Still, the established quality of goods from Chinese manufacturers has led to the nation’s dominance in the domestic import market.

How will geopolitics shape the US-China trade relationship in the years to come? Watch the latest episode of the Stay In Your Lane Podcast for key insights on this important topic.

“Quality control is absolutely essential because by the time you pay for merchandise, ship, and receive it, discovering non-conforming goods is a serious crisis,” says CPG CEO and Founder, Michael De Clercq.

The pandemic highlighted vulnerabilities in global supply chains, particularly for businesses overly reliant on Chinese manufacturing. Extended lockdowns, port congestion, and skyrocketing freight costs led companies to reevaluate their sourcing strategies. These disruptions created lasting changes in how businesses approach supply chains.

Nearshoring, particularly to Mexico, gained attention as a potential solution. However, nearshoring faces its own challenges, including higher costs and limited infrastructure for certain types of goods. While many companies have diversified sourcing to mitigate risks, China remains a dominant player in global trade.

“The pandemic was an earth-shaking logistical nightmare,” says De Clercq. “By now, the world has recovered. But it left scars, creating concerns about the stability of supply chains and the risks of relying solely on China.”

Beyond Mexico, countries like Vietnam, Thailand, and Indonesia have emerged as alternatives for sourcing, especially in textiles and consumer goods. While these regions offer lower tariffs and diverse supply chain options, they often cannot match China’s efficiency and cost advantages.

U.S.-China relations have added another layer of complexity to sourcing decisions. Tariffs have prompted some companies to seek suppliers outside China, yet China’s manufacturing ecosystem remains difficult to replace. Sophisticated products like smartphones benefit from China’s advanced assembly capabilities and proximity to component manufacturers in South Korea and Taiwan.

Despite these challenges, the pursuit of lower landed costs, factoring in tariffs, freight, and logistics, continues to drive many companies back to China for the goods consumers depend on.

Logistics professionals must adapt to these evolving dynamics, leveraging a mix of nearshoring, import diversification, and strategic partnerships to ensure stability. As the industry continues to recover and evolve, proactive planning and flexibility will remain key to overcoming future challenges.

For businesses navigating these dynamics, understanding the trade-offs between cost, efficiency, and resilience is essential. Whether capitalizing on long-standing relationships with Chinese suppliers or exploring new opportunities in emerging markets, companies must weigh their options carefully to remain competitive in a rapidly changing world. Wherever your journey takes you, count Triple T Transport to deliver reliable, cost-effective 3PL solutions.