This year we have seen an increasing trend of ethical challenges in supply chains and structural risks with expansion into developing sourcing destinations such as Bangladesh and Vietnam.
According to analysts, we are starting to see a rebalancing and shift in global merchandize trade flows. A good example of this is Brazil, whose imports from China dropped by 60% yoy in Q4 2015. At the same time, Brazil’s containerized exports to China and the rest of Asia rose. According to Asia Inspection data, the number of inspections in Brazil tripled in Q1 2016 compared to Q1 2015, but this also came with a 13% increase in Beyond AQL rates, signaling significant quality related issues.
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