
Oct 14, 2024
Key Strategies for Growth of Import Export Logistics Business in a Tariff World
Key Strategies for Growth of Import Export Logistics Business in a Tariff World

Oct 14, 2024
Key Strategies for Growth of Import Export Logistics Business in a Tariff World
1. Strategic Supply Chain & Market Diversification
The "China Plus One" strategy, nearshoring (moving production closer to end markets), and friend-shoring (moving to politically aligned countries) are key trends to follow and facilitate for clients.
Geographic Expansion: Proactively identify and expand into non-affected or emerging markets with favourable trade agreements or economic conditions (e.g., Southeast Asia, India, Mexico, specific regions in Europe).
Supplier Diversification: Encourage and help clients to establish relationships with multiple suppliers across different regions to mitigate risk associated with a single country's sudden tariff increase or disruption.
Service Diversification: Expand beyond basic freight forwarding to offer value-added services like customs brokerage expertise, warehousing (especially in Foreign Trade Zones to defer duties), labelling, and local distribution support.
2. Leveraging Technology and Data Analytics
Investment in robust data and analytics tools is crucial for informed decision-making and operational agility.
Real-time Visibility: Implement advanced tracking systems (IoT, GPS, AI-powered platforms) to provide end-to-end visibility into shipments, allowing for prompt adaptation to disruptions and real-time decision making.
Automated Compliance: Utilize automated systems and software for customs documentation and HS code classification to reduce errors, avoid penalties, and accelerate customs clearance processes.
Route Optimization: Employ AI and machine learning for dynamic route optimization to find cost-effective shipping lanes and avoid high-tariff or congested regions and chokepoints (like the Red Sea).
3. Operational Excellence & Risk Management
Focus on agility, flexibility, and robust risk mitigation as volatility becomes the "new normal".
Agility and Flexibility: Develop flexible logistics plans and capacity that can be quickly adjusted in response to sudden policy changes or market shifts.
Strong Partnerships: Build strong relationships with reliable carriers, customs brokers, and local partners who possess intimate knowledge of regional regulations and can offer alternative solutions.
4. Positioning as a Strategic Partner
Move beyond being a service provider to a trusted advisor on complex global trade issues.
Knowledge and Expertise: Invest in training staff on international trade law, new regulations, and compliance to offer expert guidance to clients, positioning your business as an indispensable partner.
Consultative Approach
Use a data-driven, consultative approach to help clients understand the total cost of ownership (including tariffs and potential delays) across different sourcing scenarios.
