Shippers: COVID Supply Chain Disruption Repeat?

We didn’t think it was possible, but what we experienced during the “once-in-a-lifetime” global pandemic is starting to feel familiar. With new tariffs in place and ongoing negotiations, this is not the time to wait and see. We’re advising clients to take action now to protect their business from risks that could hit profit margins hard.

Here are some practical supply chain disruption strategies for shippers that can help you stay prepared and minimize negative impacts:

• Model landed costs under different tariff scenarios and make sure your inventory systems can update product lots accurately.

  
  

• Ensure your suppliers are separating dutiable and non-dutiable costs on commercial invoices to avoid overpaying taxes.

  
  

• Revisit your terms to see if you can shift or reduce duty exposure.

  
  

• Understand your cash flow needs if your outlays are doubling, and explore how bonded warehouses might help mitigate that challenge.

  
  

• Identify alternative sourcing locations for high-impact SKUs.

  
  

• Check that your freight forwarder has a plan. Blank sailings, restricted capacity, and shifting manufacturing mean you need a backup for your orders—or risk significant delays. We already know shipping costs are rising fast.

  
  

Staying proactive and prepared will help minimize potential damage and keep your business resilient in uncertain times.