In spite of the reported positive progress trade talks with China have made in order to end the “trade wars”, the ripple effects have already been felt among freight forwarding clients. From billions of pounds of meat sitting in cold-storage warehouses with nowhere to go, to seeing the cost of container freight shipping double and tariff hikes already in place, many businesses are seeing a massive impact on their bottom line. The current trend in global logistics is forwarding freight through alternative ports and finding creative solutions to mitigate the impact.



Trade War Tariffs Threaten a Major Financial Impact

Starting in July 2018, the Trump administration imposed two sets of tariffs on Chinese goods under Section 301 of the Trade Act of 1974. This impacted an estimated $50 billion in imports annually placing strain on businesses large and small. Now there is a third much larger and more widely applicable set of Section 301 tariffs threatening to go from 10% to 25% on nearly $200 billion in annual imports from China, known as “List 3”. While Trump has delayed putting these next tariffs into place many companies are not waiting for the proverbial hammer to drop. They are seeking other avenues to keep their supply chain intact.


While some companies are anticipating the impact, others have already felt it. “We have had an automotive related client experience a tariff increase on their product, which resulted in duty payments north of $250,000 on single shipments. We have a client who imports small electronics and computer/cell phone accessories that has seen tariffs implemented on more than half of their products,” Justin Panasewicz, VP of International Operations at Mach 1 Global Services reports.



Avoiding Unnecessary Tariffs with the Help of Forwarding Freight Experts


With a number of their clients being impacted by the tariffs, the forwarding freight experts at Mach 1 Global Services have a number of tips and deep industry connections to serve their clients during these times. Here are a few ways Mach 1 Global Services can help:


  • They can perform a review of your parts database and related HTS numbers to make sure that they are correct. You could be paying additional duties or tariffs unnecessarily.
  • They can assist with your urgent sample or production shipments should you choose to move production to a country not affected by the tariffs. With more than 30 years of global industry connections Mach 1 Global Services is well connected to help you with the process of moving your supply chain outside of China.
    • Mach 1 is a Mexico and Mexican border expert who has been handling critical shipments in and out of Mexico for more than 30 years.
    • Mach 1 has a 10 year history in India, and can assist with air and sea shipments, and all related customs processes.
    • Mach 1 also has an established presence in Indonesia, the 4th most populace country in the world, and home to a growing manufacturing powerhouse.
  • If your business deals with shipping oversized equipment or machinery, Mach 1 Global Services has a team of project cargo experts that can assist you with transporting large assets worldwide.

If you are facing additional tariffs for your imports, contact the forwarding freight experts at Mach 1 Global Services. They can help you adapt to the changing global logistics landscape and reduce its impact on your bottom line.


To learn more about the many freight shipping services we offer, visit our page on Transportation Services. Contact us to discuss your concerns and see how Mach 1 Global Services can help. Click HERE to plan your shipment today.


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