Shippers Diversify Global Sourcing as China Lead-Time Concerns Intensify

China Lead-Time Concerns Surge as Shippers Widen Global Sourcing Networks

Small and midsize businesses are spreading their supply chains across more regions and placing orders earlier as they manage longer supplier lead times, higher freight costs, tariffs and changing consumer demand.

The shift could create a more fragmented freight environment for carriers. Instead of relying on one primary supplier or country, more businesses are dividing orders among multiple regions, creating additional ocean routes, cross-border movements and domestic transportation legs.

Findings from Netstock’s 2026 Supply Chain Planning Benchmark Report show that no single disruption is driving inventory decisions. Businesses are dealing with several pressures at once, a change the supply chain planning software company described as a move from isolated volatility to broader “supply chain chaos.”

Netstock based its findings on a survey of more than 2,500 customers worldwide, including a separate survey of more than 150 small and midsize businesses with annual revenue below $250 million.

Supplier timing was the most commonly cited inventory planning challenge. Twenty-nine percent of respondents identified supplier lead-time swings as their biggest concern. Raw material and input costs followed at 23%, freight and shipping costs at 22%, and demand shifts at 21%.

When respondents were allowed to identify multiple concerns, supplier timing appeared among the top three issues for 77% of businesses. Freight and shipping costs were included by 72%, raw material and input costs by 66%, and demand changes by 57%.

For trucking companies and drivers, the changes may be felt through less predictable shipment patterns. Purchase orders divided among several countries can produce different arrival schedules, shipment sizes and inland transportation requirements. Freight may move through a wider mix of ports, border crossings, distribution centers and intermodal connections.

More suppliers mean more freight lanes

The percentage of businesses sourcing from at least two of four tracked regions — the United States, China, Canada and Mexico — increased from 45% in 2024 to 49% in 2025 and 55% in 2026.

Netstock said supplier diversification can reduce dependence on one country or supplier, but it also adds complexity. Companies must manage more suppliers, lead times, freight routes and delivery schedules.

Businesses also reported a gradual move away from offshore sourcing. Preference for offshore suppliers fell from 31% in 2024 to 28% in 2025 and 21% this year. Preference for domestic sourcing rose from 19% to 21% and then 23% over the same period.

That does not mean supply chains are quickly becoming domestic. The share of small and midsize businesses sourcing from at least two supplier regions has increased by 10 percentage points since 2024, indicating that many companies are pursuing a broader supplier mix rather than simply moving all purchasing to one location.

China lead times become a larger concern

China remains an important part of many sourcing networks, but businesses using Chinese suppliers reported a sharp deterioration in lead-time conditions.

In 2025, 61% of small and midsize businesses sourcing from China cited long supplier lead times, compared with 52% of businesses sourcing elsewhere. This year, the figures rose to 75% for China-based sourcing and 42% for other sourcing locations.

The difference between the two groups widened from 9 percentage points to 33 percentage points in one year.

Supplier reliability is a broader concern as well. Netstock found that lead-time variability affects 74% of small and midsize businesses, while long lead times affect 63% and minimum order quantities affect 60%.

Tariffs have not led to rapid supplier changes for most U.S. small and midsize businesses. Thirty-five percent said they had changed suppliers because of tariffs during the previous 12 months. Among those that did switch, 44% cited cost as the primary reason. Country-of-origin risk accounted for 26%, supplier reliability for 15%, and tariff-related lead-time changes for 11%.

FreightWaves SONAR data also showed that, as of Sept. 24, import bookings from China to the United States were averaging below the previous three years. The China-to-U.S. Import Ocean TEUs Index uses a 14-day moving average to measure container import bookings.

SONAR Head of Freight Market Intelligence Zach Strickland wrote that 2026 had been less chaotic but remained difficult for shippers managing rising transportation and inventory costs in an uncertain consumer environment. He also noted that political issues have become more closely tied to economic conditions, adding to business concerns despite relatively stable aggregate figures.

Earlier ordering could move freight demand forward

Businesses are also trying to prepare for peak-season disruptions by ordering earlier or purchasing larger quantities. Fifty-three percent of small and midsize businesses said they were taking that approach, while 39% said they were relying more heavily on forecasting and planning tools. Only 10% said they were adding or switching suppliers for peak-season preparation.

Earlier purchasing can move freight demand ahead of traditional seasonal peaks. For carriers, that may mean stronger volumes during earlier periods, followed by softer demand after warehouses have been stocked.

However, the survey also found potential risks in buying earlier without accurate demand forecasts. Only 44% of businesses that ordered earlier reported service levels above 90%, compared with 62% of companies that did not order earlier. Dead-stock rates were not significantly better among the early buyers.

The findings point to a supply chain environment in which freight movements are being shaped by multiple overlapping decisions. More sourcing regions can spread risk for shippers, but they can also create more complicated transportation networks and less consistent shipment patterns for the trucking industry.