As a freight and logistics company, FreightExchange keeps an eye on what’s happening in our industry. This story from furnituretoday.com caught our attention:
Infrastructure issues in alternative source countries creates headaches
The migration of furniture sourcing out of China considering tariffs on Chinese goods has created a supply chain ripple that’s straining infrastructure and complicating shipping from alternative source countries.
While nations such as Indonesia, Malaysia, Vietnam, and India have shown their ability to produce goods for the U.S. market, increased demand is stretching not only factory capacity, but also road infrastructures and those countries’ port facilities, which pale in comparison to China’s.
In addition, ocean carriers don’t have as many direct sailings to U.S. ports from many Southeast Asian countries as they do from mainland China, creating the prospect of delays and increased costs from trans-shipments.