The supply chain disruption caused by the closure of Chinese factories may lead to greater changes, and shifting the manufacturing industry closer to consumers will reduce the demand for transportation. Shippers and Third-party logistics companies see more local manufacturing returning, because COVID-19 shows the vulnerability of just in time logistics mode.

The head of major Third-party logistics organizations in the United States said that the impact of COVID-19 may become a catalyst to promote broader restructuring of the supply chain. At the Canadian Freight Logistics Conference held in Vancouver, Bob Waltman, CEO of the Transportation Intermediaries Association, told Lloyd's Daily, "This is the second time this has happened in China. The situation we are seeing this time is different from when SARS occurred in 2003. We have already seen air travel stop. In the United States, we are isolating passengers. This gives us a huge opportunity to reinvest our supply chain into the North American market

Mr. Waltman said, "Ratify the United States Mexico Canada Agreement (USMCA) to replace the North American Free Trade Agreement (NAFTA) It will also help to invest more in manufacturing in the United States rather than in Asia. The population of China is decreasing. In a country with an economic growth rate of 6%, the one child policy makes some sense. Because of this, in the long run, China will begin to become like Japan, wealthy but with a decreasing population. Therefore, low-cost manufacturing will shift from China to Southeast Asia. But I think you will see closer procurement. If you sell products in North America, you will produce them here

Mr. Waltman said, "The increase in oil and gas production in the United States will lead to more chemicals and plastic products being produced in the United States, which will be used for local manufacturing. There is also Mexico near us, where labor costs are much lower and transportation costs for returning to the United States and Canada by rail and truck are also much lower. I do see a revival in North American manufacturing

Magari Amir, the Canadian transport manager of the French sportswear brand Decathlon, told Lloyd's Daily that this COVID-19 had affected the company's imports. Ms. Amir said, "Our factory in China has closed, and the containers there should have been placed in Canada. It has already put pressure on the supply chain and stores, so it will be important to diversify procurement sources in the future." Amir said, "Environmental protection issues also advocate for the importance of close range procurement. It is important for the manufacturing industry to produce as much as possible within major consumer countries. Customers also hope to produce locally