Companies are shifting sourcing out of China into Southeast Asia, and the 3PLs best positioned to support the move are not always the ones talking about it. GXO published an essay this week calling the shift a "fundamental, long-term transformation," even though Asia contributes less than 1% of its revenue.
The shift is real: US inspection demand for China sourcing fell 18% in 2025 while Southeast Asia rose 24%, according to QIMA's Q1 2026 Barometer. Vietnam climbed 30% and Thailand 44%.
Production moves support the trend. Apple now makes about 25% of iPhones in India, HP produces over 90% of its North American products outside China, and Adidas spreads output across Vietnam, Indonesia and China.
Who's actually built for it: Capacity is the benchmark, not positioning.
Who's actually built for it: Capacity is the real benchmark. Here's what each company has actually built:
Kuehne+Nagel has acquired Malaysia’s City Zone Express, adding 260 vehicles and 80,000 sqm across Southeast Asia
GXO has one signed warehouse in the Johor-Singapore zone and says its larger expansion, through M&A, begins in 2027. CEO Patrick Kelleher told The Loadstar: “Our business in Asia right now is small… I just don’t think we turned our eye to that strong growth yet.”
The takeaway: If you are building a Southeast Asia alternative to China, the 3PL choice comes right after the sourcing decision. Evaluate providers on warehouse capacity already operating. By that measure, GXO is arriving later than its peers.
Dig deeper:
Kearney 2026 Reshoring Index — China shed $135B in US imports last year while 13 other Asian low-cost countries absorbed $193B.
