We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Nearshoring will alter supply chain flows
Perspective

Nearshoring will alter supply chain flows

March 26, 2013
James A. Cooke
No Comments

As nearshoring gains traction, it could change supply chain flows across the United States. This sourcing strategy—bringing manufacturing closer to end markets or purchasing from suppliers near those markets—could lead companies to establish distribution centers in new locations and push carriers to set new routes.

The offshoring of manufacturing to Asia has resulted in fleets of containerships bringing goods to West Coast ports. There, containers filled with imported goods are offloaded onto intermodal trains for transport throughout the United States. In this scenario, supply chain flows run from west to east.

But that west-east pattern is expected to abate somewhat. With an increasing number of manufacturers leaving China for Mexico or other countries in Latin America, the volume of cargo flowing along a north-south axis—particularly from south to north—should pick up.

Of course, since Canada and Mexico are major trading partners of the United States, a steady north-south flow among the three North American Free Trade agreement (NAFTA) countries is to be expected. But aside from NAFTA trade, there's another important development that could strengthen the flows of shipments along north-south routes: an increase in manufacturing in the United States. If the pundits are right and more producers choose to establish plants in nonunion states in the South, then supply chain flows should increasingly radiate northward.

If supply chain flows in the United States change, companies likely will need to change their networks and establish distribution centers in new locations. Although that might be somewhat disruptive to the warehousing industry, carriers should be able to adjust to these patterns and provide the service their customers will need. In fact, railroads and trucking companies might welcome the change. Those whose major business flows west to east sometimes have trouble finding loads heading back in the other direction. As more traffic begins to flow from south to north, carriers may be able to use such network changes to their advantage, finding backhauls and balancing equipment flows better than they are able to do now.

    • Related Articles

      Economic anemia will lead to innovation

      Why Christmas will never be the same

      Metamorphosis of a supply chain

    James A. Cooke is a supply chain software analyst. He was previously the editor of CSCMP's Supply Chain Quarterly and a staff writer for DC Velocity.

    Recent Articles by James A. Cooke

    Getting smart about using software intelligence

    The payback challenge

    A farewell, with thanks

    You must login or register in order to post a comment.

    Report Abusive Comment

    Most Popular Articles

    • Wabash opens trailer manufacturing facility in Indiana

    • Six defining challenges of omnichannel fulfillment

    • Postal advocacy group says “excessive” July 9 stamp price hike will hurt consumers

    • California bill would require large corporations to disclose their greenhouse gas emissions

    • Panorays extends risk management throughout the digital supply chain

    Featured Video

    8757b894 244c 4429 b5d8 e6df7b479d82

    Penalties for Wood Packaging Material Violations

    Viewer Contributed
    Our Services Include: Customs Broker Denver Freight Forwarder Denver Global Logistics Denver Cargo Insurance Denver Customs Bond Denver Customs Clearance Denver Customs Duty Denver Isf Filing Denver More details: Phone : 281-445-9779 Email: info@gallaghertransport.com Website: gallaghertransport.com

    FEATURED WHITE PAPERS

    • Five questions to ask before electrifying your indoor forklift fleet

    • Operator assist system myths busted

    • Three layers of forklift safety: Promoting operating best practices

    • The Complete Guide to Automated Packaging

    View More

    Subscribe to Supply Chain Quarterly

    Get Your Subscription
    • SUBSCRIBE
    • E-NEWSLETTERS
    • ADVERTISING
    • CUSTOMER CARE
    • CONTACT
    • ABOUT
    • STAFF
    • PRIVACY POLICY

    Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing