How Shippers Cope with Global Tariffs?
- help7844
- Apr 23
- 2 min read
Great question—global tariffs can really shake things up in the shipping world. Here’s how shippers (like freight companies, exporters, and importers) typically cope with them:
🔄 Supply Chain Adjustment
Re-routing trade: Shippers may avoid tariff-heavy regions by rerouting shipments through countries with favorable trade agreements.
Nearshoring: Companies move production closer to home (e.g., U.S. firms shifting from China to Mexico) to reduce exposure to high tariffs.
Diversifying suppliers: Instead of relying on one country, businesses build networks in multiple countries to stay flexible.
📦 Reclassification of Goods
Tariff rates can vary by how a product is classified. Shippers sometimes work with customs experts to reclassify items under codes that carry lower tariffs—legally, of course.
💸 Pricing Strategies
Passing on costs: Some businesses raise prices to offset tariffs.
Absorbing costs: Others eat the cost to stay competitive, especially if customers are price-sensitive.
Negotiating with suppliers: Try to share the burden of the tariff impact.
📃 Leveraging Trade Agreements
Free Trade Agreements (FTAs): Shippers actively look for ways to utilize FTAs like USMCA, EU-Japan EPA, or ASEAN trade deals to avoid or reduce tariffs.
Duty drawback programs: Claim refunds on tariffs paid for goods that are later exported again.
🚢 Consolidating Shipments
Combine smaller shipments into one larger container to lower the cost-per-unit of shipping and make tariffs less painful proportionally.
📊 Investing in Trade Intelligence
Many use real-time analytics and trade data tools to keep up with changes in global tariffs and stay ahead of regulatory shifts.
Want examples from a specific industry—like electronics, textiles, or agriculture? Or how a major shipping company like Maersk or FedEx handles this?
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