Impact of logistics trends on the Asia-Europe supply chains. A study of relocation of production and the current transportation market

Abstract

The future of transportation is standing on the brink of a revolution. The environmental question grows stronger by every day and the current state of reliability, high prices and venerability of the shipping market lays as foundation to the current debates of reshoring and alternative modes of transport. The purpose of this thesis is to improve the understanding of the effects that logistics trends have on production localization in China-Europe supply chains. To evaluate and study this, interviews and a survey was conducted with persons of interests working in relevant market areas in relevant positions to give valuable information and data. This information and data were collected to find what the current trends, prerequisites, and disruptions are, and how they will affect companies moving goods from China to Europe or Sweden, both today and in the future. The study is aimed towards companies already having production and moving goods from China to Europe, these types of companies will be referred to as “target companies” throughout the report. The question that rises are then if it is possible to keep doing this while the situation is getting worse or if the companies should move their production somewhere they are not forced to rely on the long transports. Using the collected data from both interviews and a survey the results has been compiled and compared. To find out if the trends, prerequisites, and disruptions are common to both the interviewees and our target companies in the background. The result showed that it is not only the transport situation that is a factor regarding reshoring now, because the situation is not that bad. Right now, the trends with reliability of getting cargo on time is clearly the most concerning issue. Right now, it is clear that you have to take in account not only transport perils but also disruptions like war, canal blockages and global lockdowns.