Tariffs are more than just taxes—they’re pivotal forces that reshape supply chains and influence how goods move across borders. Policies like those recently discussed by FreightWaves highlight how tariffs are driving changes in sourcing strategies, trade routes, and logistics solutions. For global shipping providers like ForwardNow, these shifts bring new opportunities to support clients navigating a transformed trade landscape.

The Ripple Effect of Tariffs on Global Shipping

Tariffs often compel importers to rethink their sourcing and logistics strategies. Faced with higher costs on goods from certain countries, businesses must choose between absorbing these costs, passing them on to consumers, or finding alternative suppliers. Many opt for the latter, redirecting supply chains to countries with more favorable trade agreements.

This shift is accelerating a broader diversification of supply chains, reducing dependence on volatile regions and fostering resilience. For global shipping providers, this means facilitating new trade routes, navigating emerging markets, and offering end-to-end solutions for complex logistics challenges.

Nearshoring: A Game Changer for Cross-Border Shipping

One of the most notable shifts driven by tariffs is the rise of nearshoring—moving production closer to consumer markets. Mexico, for example, has emerged as a key beneficiary of these changes, thanks to its proximity to the U.S., lower labor costs, and stability as a trade partner under the United States-Mexico-Canada Agreement (USMCA).

Nearshoring doesn’t just reduce manufacturing costs; it also redefines the logistics landscape. Shipping providers are tasked with creating seamless cross-border solutions, whether by ocean, air, rail, or ground transport, to keep supply chains running smoothly.

Beyond Borders: Facilitating Global Trade

Global tariffs don’t only impact the Americas. They drive changes across continents, prompting businesses to explore new partnerships in Europe, Southeast Asia, and beyond. ForwardNow specializes in connecting clients to these emerging opportunities, whether it’s arranging multimodal freight from Asia to North America or streamlining customs clearance for shipments bound for Europe.

By offering comprehensive logistics solutions—including customs brokerage, risk management, and insurance—ForwardNow ensures that goods move efficiently across borders, no matter how trade policies shift.

Resilience in a Changing World

As FreightWaves notes, tariffs are more than just economic tools—they're strategic levers shaping global trade. By diversifying supply chains and prioritizing resilience, businesses can better withstand geopolitical and economic uncertainties.

At ForwardNow, we’re not just observers of these changes; we’re active participants, ready to help clients adapt to new realities. Whether it’s coordinating cross-border shipments, exploring new trade lanes, or navigating complex regulatory landscapes, we provide the expertise needed to thrive in a dynamic global market.

Source: FreightWaves, Trump’s Tariffs: A Boost for Domestic Trucking Demand (December 13, 2024)

As businesses take action to mitigate potential supply chain disruptions, global shipping is bracing for significant shifts. According to a recent forecast by the National Retail Federation (NRF), container imports through U.S. ports are expected to surge into the new year. This increase reflects shippers’ efforts to navigate two looming challenges: a potential strike by East and Gulf Coast longshore workers and proposed tariffs by the incoming administration.

A Surge in Imports to Avoid Disruption

In October 2024, containerized import volumes totaled 2.25 million twenty-foot equivalent units (TEUs) across ports monitored by the Global Port Tracker. While this figure represented a slight 1.2% dip from September, it marked a 9.3% year-over-year increase. Looking ahead, projections for November and December suggest continued growth, with import volumes anticipated to rise by over 14% year-over-year for each month.

The surge is largely driven by importers frontloading cargo to avoid potential supply chain disruptions. Retailers, in particular, are prioritizing early shipments to shield themselves and their customers from the economic impact of potential strikes and broad-based tariffs.

Retailers and Policy Advocates Urge Action

The NRF, representing major retailers like Walmart, Target, and Levi Strauss, has urged both industry and political leaders to address these potential challenges. The organization has called for renewed contract negotiations between port employers and the International Longshoremen’s Association (ILA), emphasizing the critical need to avoid a work stoppage that could further strain supply chains.

Additionally, the NRF has advised the incoming administration to adopt a strategic approach to tariffs, warning that sweeping policies could increase costs for everyday goods.

Record-Setting Import Activity and the Path Forward

The ripple effects of this frontloading are evident in intermodal container activity, with record-setting volumes reported by the Association of American Railroads in November. This trend underscores the interconnected nature of global shipping, where increased port activity leads to heightened demand across rail, trucking, and warehousing networks.

Looking ahead, monthly import volumes for early 2025 are projected to remain robust. January imports are expected to rise 12% year-over-year, while February may see a temporary dip due to Lunar New Year factory shutdowns in Asia. By March and April, imports are anticipated to rebound, growing by 12.7% and 6.6%, respectively.

What This Means for Global Shipping

The surge in container imports highlights the importance of adaptability in today’s global shipping landscape. ForwardNow is committed to helping businesses navigate these challenges with reliable, multimodal logistics solutions. From managing peak-season surges to mitigating supply chain risks, our expertise ensures that your goods move efficiently, even amid uncertainty.

Source: National Retail Federation and FreightWaves, Container Imports to Surge Ahead of Strike, Tariffs (December 10, 2024).