b'AUGUST 29 - SEPTEMBER 25, 2022NORTH AMERICAS TRANSPORTATION & LOGISTICS NEWSPAPER21Lena R.Irtysh R U S S I A AmurAstana IrkutskChina-centric supplyAmurchain changing Qaraghandy CHINA TRADE 2022 AmurKAZAKHSTAN UlaanbaatarQiqiharIrtyshThe China-centric supply chain may be giving way to sourcing alternatives but isAlashankou M O N G O L I A Harbin Jixistill the biggest game in town. Alma Ata Urumqi Erenhot Changchun Jilin VladivostokBishkekLiaoyuanFuxin FushunBy Matt Miller, AJOT KYRGYZSTAN Tarim R. BenxiBaotou Zhangjiakou Jinzhou Yingkou NORTH KOREABaotouHuang Ha Hohhot Feng ChengThisspring,asuddenspikeinCOVIDcasesDatong Beijing Tangshan DandongtriggeredadraconianlockdowninShanghaithatYinchuan Tianjin Port of TianjinDalian PyongyangTAJIKISTAN Yinchuanlasted for nearly a month. It brought area factoriesC H I N A Taiyuan Shijiazhuang Incheon SeoulHuang Ha SOUTH KOREAandthecitysmammothportcomplexaliketoaXining Handan Jinan Taejeon Sakai- JAPANstandstill, wreaking havoc on Chinas supply chain,Lanzhou Luoyang Taian Port of Qingdao Taegu minato Kyoto TokyoPAKISTANZaozhuang Nagoyaand, by extension, large and wide-ranging segmentsXian Kaifeng Xuzhou Port of LianyunangPusan Hiroshima OsakaIslamabad Srinagar Huang Ha Xian Xuzhou Kita-kyushu Osakaof international commerce.Rawalpindi Indus Xian Huaibei FukuokaFukuokaThings are getting crazy, one Los Angeles- Huainan WuxiIndus Gujranwala Jinsha R. Nanjingbased household appliances importer told the Wash- Mianyang Wuhan Hefei Wuhu Port of Shanghai Faisalabad Lahore Salween Port of Shanghaiington Post at the time. Everything is halted. Chengdu Yangtze Huangshi Huzhou JiaxingChengdu YangtzeChengdu Wuhan HuzhouMultan HangzhouEarlier this month, Americas Inflation Reduc- NEPAL Zigong Chongqing Yueyang Nanchang Ningbo Port of NingboNewDelhi JingdezhenIndus Shang Raotion Act became law. A provision specifically tar- Kathmandu BHUTAN Changsha Shang RaoJinsha R.geted the supply chain for minerals and componentsAgra Ganges Lucknow Thimphu Dukou Guiyang Pingxiang WenzhouJaipurthat go into everything from electric cars to solarKanpur Patna Brahmaputra Mekong FuzhouAllahabad Gangespanels with measures aimed to reduce US depen- Varanasi BANGLADESH Salween R. Kunming Shaoguan Port of Xiamen TaipeiINDIAdence on China for a shift to renewable energy.Bhopal Jabalpur Dhanbad Dhaka Port of GuangzhouAhmadabad P a c i f i cThis is just the latest political measure aimed,JamshedpurKolkata Khulna Chittagong Nanning ShantouVadodara Indore (Calcutta) KaohsiungNarmada O c e a nlargely through steep tariffs, to punish China andVIETNAM Hanoi Zhanjiang Port of Hong KongSuratweaken its hold on American commerce. TreasuryNagpur MYANMAR Mekong LAOS Hai Phong Port of ShenxhenPort of ShenzhenSecretaryJanetYellenrecentlypushedwhatshe UlhasnagarMumbai Pune Godavari R.calledthefriend-shoringofsupplychains,anVientiane(Bombay)obvious dig against unfriendly China. Krishna R. Hyderabad Vishakhapatnam THAILAND PHILIPPINESSalween R.These come on the back of massive COVID- Krishna R. Rangoonrelated shocks that upended international trade forMekongthe better part of two years. Demand whipsawed. China, its customers, and logistics providers, were completely caught out.c hAllenge to thec hinAc entrics uPPlyc hAinAll this underscores the impression that Chinas dominant place in global commerce is being threat-ened. In unprecedented ways. its vaunted system of manufacturingprowess,girdedbywell-oiledandGUANGZHOU PORT GROUPstate-of-the-art logistics and support, is under attack.AChina-centricsupplychainisbeingchal- THE FASTEST GROWING PORT IN SOUTH CHINA lengedbyaconfluenceoffactors,saidCarlos(FY 2021 Volumes)Cruz,apartnerinthemanagementconsultancyNansha = 17.62 M TeusBain & Co. One is a political side that is driving uncertainty. Two is a fundamental shift driven by theHong Kong = 14.51M Teusincreasing pressures from a supply perspective. Yantian = 14.16 M TeusThe trauma of the past two-and-a-half years has forced pretty much everyone involved in cross-bor- PORT OF NANSHA (GUANGZHOU PORT GROUP)der trade, commerce, and logistics to question the status quo. But how this big reexamination playsNew On Dock Rail (connecting the Hinterlands+Europe)out is anything but certain, and how China will beNew Cold and Dry Warehousing Facilities with Air-Sea+Rail enabling impacted is a matter of intense speculation.Ecommerce ShippersA few now believe that China will play a less commanding role in the global supply chain in theNew Terminal (4th) Fully Automateddecade to come.Open 24/7/365Majorsupplychaindisruptionsduringthe16+ Berths, 65+crane and Deep Waterpast decade have mostly not led to any significant changestosupplychainfootprintsorresilience/riskmitigationstrategies,socautioniscertainly justified, said Geraint John, vice president Interos Resilience Lab, which makes supply chain manage-ment software. However, in the case of China and the West, the backdrop is a long-term geopolitical shift in the balance of economic power, rather than merely short-term disruptive events, so unless dip-lomatic relations begin to improve, its highly likely that some strategic rebalancing in supply chains will need to happen. Of course, John added, some industry sectors will be impacted by this more than otherscritical technologies vs household durables, for example.Others maintain that what change comes will be gradual, often citing a ten-year transition period necessarytomakemeaningfulchanges.Chinas*Balance your Supply Chain by having multiple Origin and Destination Gateways=Port Diversificationdominance will continue for some time.It is a shift, said Cruz. I dont think were going to see companies that are completely exiting. You may see 20% to 30% of volume shift over timeS.CHINA PORT WITH N.AMERICA AND to new manufacturing countries or completely dif- EU/UK REPRESENTATIONferent geographies.Thesupplychainisnotgoingawayfrom China, added Daniel Karlsson, assertively. Karls- FOR MORE INFORMATION, VISIT US AT son is the managing partner of the consultancy AsiaPORTOFNANSHA.COMPerspective. Its just changing. Whats indisputable is that uncertainty and fear (CHANGINGcontinued on page 22)'