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More on 3PLs from a Provider’s Perspective

Free trade agreements have a history of spurring trade activity; however, they do not always point to a decline in opportunities for 3PLs overseas.

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Editor’s Note: Rick Mettetel, vice president, global forwarding for C.H. Robinson, recently shared these insights with our readers on current state of third party logistics.

Supply Chain Management Review: With new trade agreements now on hold, will there be a decline in 3PL opportunities overseas?

Rick Mettetel: Free trade agreements have a history of spurring trade activity; however, they do not always point to a decline in opportunities for 3PLs overseas. Shippers that work with 3PLs like C.H. Robinson are often better positioned to be agile and flexible when economic or geographic changes occur. That said, should current trade agreements be reversed, it is possible trade could slow.

SCMR: Do you see more on-shoring as a consequence?

Mettetel: A number of factors is affecting the rise in near-shoring including carrier, port, and labor issues; rate instability, primarily in ocean carriers; and rising costs in other areas of the world, most notably China. Global companies are taking the opportunity to evaluate their supply chains and are continuing to evaluate opportunities to near-shore their operations. We don’t anticipate all companies will move operations closer to home, but some might. 

SCMR: How important will cross-border trade be next year?.

Mettetel: Mexico is certainly benefitting currently from the recent uptick in near-shoring. What’s in the future? That’s left to be seen at this point.


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Third Party Risk: Too Close for Comfort
You’ve got a handle on many of the potential supply chain "disrupters" that can paralyze your business. But the real risk is embedded in areas you may have overlooked.
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From the December 2017
This is a comprehensive guide to services, products and educational opportunities targeted specifically to supply chain professionals. As with years past, we’re also featuring several articles we trust will offer food for thought in your supply chain throughout the coming year.
Transportation Trends: The last mile, history repeating
Economic Outlook: A Complex and Uneven Scenario for Global Supply Chains
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