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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