As a result of President Trump's desire to reshore U.S. manufacturing and increase revenues on imports, tariff rates hit their highest level in more than 100 years, increasing from 2.5% to an estimated 27%. Even businesses that didn't expect tariffs to impact them are feeling the pain of increased material costs, customs delays, administrative burdens, and shipping surprises.

Today, we're sharing a few tips on how to address tariff challenges and how you can offset your spending by saving on shipping.

4 Proactive Strategies To Reduce Tariff Troubles

Don't wait until you're overwhelmed by expenses and your products are stuck in customs to make a plan. Start now:

1. Re-evaluate Your Supply Chain: Are there alternative sourcing options available in countries with more favorable tariff agreements? Could nearshoring or even reshoring some production make sense in the long run? While these are significant decisions, the current tariff environment may be the push you need to build a more robust supply chain.

2. Understand Your True Shipping Costs: Tariffs add a layer of complexity to your shipping expenses. It's no longer just about the base rate. You need to factor in duties, customs fees, and potential delays when calculating the true cost of getting your product from point A to point B for accurate pricing and margin management. UPS Global Checkout's real-time updates provide a clear view of the guaranteed landed cost at checkout, including all duties, taxes, and fees.

3. Leverage Technology and Data: Utilize shipping analytics to identify your most impacted lanes, product categories, and even individual SKUs. Investing in logistics technology can help streamline compliance and provide greater visibility into your shipping spend.

4. Trust, but Verify: Now, more than ever, it's essential to double-check every line item while shipping and receiving. Parcel audits can ensure you're only paying for the services you use.

Surefire Savings in Questionable Times

We can't stop a trade war, but we can offer two paths for significant savings

Parcel Audits

A thorough parcel audit should meticulously review every line item to uncover:

●       Billing Errors: Incorrect weights, duplicate charges, and misapplied surcharges are surprisingly common.

●       Service Failures: Recover refunds when parcels aren't delivered as guaranteed.

●       Unnecessary Fees: Identify and eliminate avoidable accessorial fees.

Recovering these overcharges can significantly offset the impact of rising tariff costs.

Parcel Rate Negotiation

Did you know you can renegotiate your shipping contract at any time? Engaging ShipRx for strategic parcel rate negotiations with FedEx and UPS can lead to substantial savings by:

●       Analyzing Your Shipping Profile: We evaluate your unique shipping patterns to give you leverage.
●       Benchmarking Rates: We're well-versed in industry standards to ensure you get a competitive deal.
●       Leveraging Volume: Shipping consistent volume may qualify you for better discounts.
●       Negotiating Surcharges: We don't just focus on base rates; many hidden costs lie in surcharges.

By negotiating your contracts proactively, ShipRx can help you secure better terms and lower your per-package shipping costs, offsetting rising rates due to tariffs.

Maybe there is a cure after all!

Ready to take control of your shipping costs? Explore how a comprehensive parcel audit and expert parcel rate negotiation with ShipRx can benefit your business today.