• Advertise
  • Contact Us
  • Supplier Directory
  • SCB YouTube
  • About Us
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Parcel & Express
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Robotics
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Customer Relationship Management
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • Green Energy
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • Sourcing/Procurement/SRM
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Management & Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Warehouse Automation
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • WHITEPAPERS
  • VIDEOS
Home » Blogs » Think Tank » Viewing the Coming Weeks Through a Crystal Ball, Darkly

Think Tank
Think Tank RSS FeedRSS

Viewing the Coming Weeks Through a Crystal Ball, Darkly

Battered by Trade War and COVID-19
Source: Bloomberg
September 21, 2020
Robert J. Bowman, SupplyChainBrain

For shippers, carriers and consumers, was there ever a time when the near future seemed as uncertain as it does today?

One expects a wide margin of error in long-term forecasting. Chaos has a habit of disrupting even the most carefully crafted scenarios for the coming year, five years, or beyond. But it shouldn’t be that hard to predict what’s going to happen a couple of months from now. Shouldn’t it?

A pandemic that shows few signs of abating. An economy in a tailspin. A presidential election that could upend economic, trade and geopolitical policy. And huge questions about how consumers will respond to this pack of wild cards. All are factors that make it virtually impossible to prepare for the weeks ahead with any amount of confidence.

To be sure, at least some of those trends were well in evidence before COVID-19 laid waste to a thriving and seemingly unshakable economy. The trade war between the U.S. and China had already brought a measure of pain and uncertainty to American exporters. Manufacturers were beginning to rethink their love of China as a source of low-cost production. And mounting corporate and sovereign debt had some prognosticators warning that the economy was teetering on the edge of a devastating crash.

Now, with the pandemic still in full force, those rumblings have become a quake with global reach. Past disasters have tended to restrict supply-chain disruptions to a single country or region, prompting a shift in sourcing. But when every country in the world is in some stage of lockdown, where do you go for alternative suppliers?

The push to diversify sourcing has been underway for several years, says Patrik Berglund, chief executive officer and founder of Xeneta, provider of a benchmarking and freight-rate analysis tool for ocean and air. Rattled by a series of abrupt shifts in American trade policy, Fortune 500 companies were looking for stability, a quest that led them to consider countries such as Vietnam, Bangladesh, Eastern Europe, Mexico and even the U.S. itself, he notes.

That last option has attracted a lot of press of late, bolstered by rising labor rates in China and the notion that producers could mitigate the risk of supply-chain disruptions by siting factories closer to end markets. All of which looks good on paper, but Berglund isn’t completely buying the argument.

“Personally, I struggle to play it out,” he says, citing the many years that Chinese producers spent in acquiring the expertise to churn out goods quickly, cheaply and reliably.

High U.S. import tariffs might well curb the flow of manufactured goods from China, but to stand up a similar infrastructure of factories and suppliers in the U.S, “you would need to build capacity and competence, and do the investments that are needed,” says Berglund. “That’s not going to happen overnight.”

For a Fortune 500 producer, the task of undertaking a major shift in sourcing could take years. Meanwhile, a couple of presidential administrations might have occurred, with a highly uncertain impact on long-term trade policy. What happens, for example, if the next president drops all tariffs on goods from China and once more makes that country a viable, cheap producer of consumer goods? Companies that rushed to reshore when tariffs were high could find themselves at a severe competitive disadvantage to those that held back and waited for the diplomatic dust to settle.

There’s been much talk in recent years of a shift away from free trade and globalization. Berglund isn’t buying that one, either. “Over the last 70 years, global trade has been the key thing that has increased and improved everybody’s way of living,” he says. “I can only find positives from it.

“What’s so strange about these times is that there aren’t facts or evidence saying we should reverse what we’ve done [in trade policy],” Berglund continues. “That’s why I think this election is so interesting.” With another four years of draconian punishments for U.S. trading partners generally, and China in particular, “the U.S. might struggle to be the powerhouse that the rest of world will be looking for.”

Such are the factors to consider, but in times of confusion and anxiety, who is willing to toss the dice and make decisions about sourcing that could impact their profitability for years to come? Shippers have enough on their plate dealing with day-to-fluctuations in freight rates and capacity availability. Ocean carriers have been cancelling scheduled sailings left and right, a practice that has allowed them to limit ship space and keep rates high. Airlines are struggling to repurpose passenger planes to carry cargo, but could instantly reverse that effort if people gain the confidence to start flying again.

Past trends offer little in the way of guidance for businesses trying to suss out the rest of the year and early 2021. For companies large and small, the current combination of bruising events has rendered the phrase “perfect storm” more than a glib cliché.

“Uncertainty is the key word,” says Berglund. “Anyone who could bring certainty [to this world] would be very rich for sure. There’s nobody with experience to guide you through it.”

Forecasting & Demand Planning Supply Chain Planning & Optimization Global Supply Chain Management Global Trade & Economics Regulation & Compliance Sourcing/Procurement/SRM Supply Chain Security & Risk Mgmt

RELATED CONTENT

RELATED VIDEOS

Subscribe to our Daily Newsletter!

Timely, incisive articles delivered directly to your inbox.

Featured Product

Popular Stories

  • Stacks of multi-colored shipping containers arranged in rows at a port, with rows of blue and grey shipping cranes lining the background along the coastline

    Port of Savannah Approved for New 3.5M TEU Terminal

    Global Gateways
  • An overhead view of a port, with stacks of containers and vehicles moving through rows

    Podcast | AI in Supply Chain Planning: Impact, Promise and Limits

    Artificial Intelligence
  • SCB_Q426_SAP_FSR_THUMB_2.jpg

    An AI Playbook for Your Journey to Autonomous Planning

    Global Logistics
  • On Demand Webinar Locus Robotics Thu Oct 15 2026 11a ET.png

    Designing for Uncertainty: A Flexibility-First Approach to Warehouse Automation

    Webinars
  • A row of semi-truck cabs, with a red truck in the foreground, parked next to four white trucks, two more red ones, and three blue ones

    USDOT Announces $200M in Funding for Commercial Truck Parking

    Logistics

Digital Edition

Scb q3 26 cover

100 Great Supply Chain Partners 2026: The Secret to Supply Chain Success

VIEW THE LATEST ISSUE

Case Studies

  • Recycled Tagging Fasteners: Small Changes Make a Big Impact

  • A GRAPHIC SHOWING MULTIPLE FORMS OF SHIPPING, WITH A HUMAN STANDING AT THE CENTER, TOUCHING A SYMBOLIC MAP OF THE WORLD

    Enhancing High-Value Electronics Shipment Security with Tive's Real-Time Tracking

  • A GRAPHIC OF INTERLACING HONEYCOMBED ELEMENTS REPRESENTING GLOBAL BUSINESS TRANSACTIONS

    Moving Robots Site-to-Site

  • JLL Finds Perfect Warehouse Location, Leading to $15M Grant for Startup

  • Robots Speed Fulfillment to Help Apparel Company Scale for Growth

Visit Our Sponsors

4flow Amazon Freight Anaplan
Arkieva AutoStore Blue Yonder
Canadian National Railway Company Carton Cloud CoEnterprise
Dassault Descartes Dexory
Duravant E2Open EPG
General Logistics Systems GEP Hy-Tek
iGPS Knapp Korber
Lyngsoe Odyssey Logistics OMP
PeakAI Procurability Quinyx
SAP Sikick Staples
S&P Global Mobility Systech TADA
Tive TransImpact US Bank
Werner WSI
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Email Preferences
    • Newsletters
  • Resources
    • Events Calendar
    • 2026 Event Coverage
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2026 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing