Ocean Network Express (ONE) indicated that the map of global textile production is being redesigned with a migration from East Asia to the Southeast and South of the continent, accompanied by a new era in sourcing strategy.
According to the Japanese shipping line, this evolution is driven by factors such as competitive labor costs, government policies, geopolitical obstacles, and technological disruptions.
This scenario implies challenges for carriers and brands, raising questions about where to source from to build a resilient, agile, and forward-looking supply chain.
In its perspective, the maritime company maintained that “while East Asia remains a significant player, its relative share of clothing exports is contracting. The crucial trade route between East Asia and North America recorded a negative compound annual growth rate (CAGR) of -1.2% between 2015 and 2024.”
“This is not only due to rising costs but to a strategic shift accelerated by geopolitical tensions and tariff uncertainty. As companies adopt supply chain diversification strategies to mitigate risks, they are fundamentally altering established trade patterns and facilitating the emergence of new distributed sourcing ecosystems,” explained ONE.
Likewise, the company highlighted the attractiveness of Southeast Asia for foreign investment and the advanced manufacturing capabilities offered by some countries in that region, accompanied by proactive government policies.
“Long-term fiscal incentives, combined with a growing skilled workforce, are facilitating the production of higher value-added garments, making the region an attractive long-term strategic option,” emphasized the firm.
Regarding infrastructure and connectivity, the shipping line maintained that “the quality of ports, roads, and digital infrastructure is critical. A country’s investment in global connectivity is becoming a crucial factor in determining its viability as a long-term sourcing partner.”
“The rise of ultra-fast fashion business models demands unprecedented levels of speed and agility in the supply chain. This is shifting sourcing decisions towards partners that can support rapid production cycles and direct-to-consumer logistics,” it explained.
“Navigating this multifaceted landscape requires more than a simple cost comparison. The interaction between geopolitics, advanced manufacturing, infrastructure quality, and the demands of e-commerce creates a complex challenge. Success depends on a logistics partner with extensive hands-on experience in these emerging regions,” emphasized Ocean Network Express.
