The 2:00 Minute Warning

We’ve been on a tariff rollercoaster ride for a couple of weeks here and expect to see more twists and turns ahead. 

Looking back for a moment, on April 2 the President announced the reciprocal tariff amounts and all sorts of things were happening in the following days. The stock market became a center of attention during this time since it rapidly lost trillions of dollars in valuation. And then, for non-retaliating countries, the new reciprocal tariffs were rescinded and a blanket 10% tariff was put in place instead. While this brought relief for imports from several countries, the escalation with China is another story.

How do shippers manage in a sea of uncertainty – especially when what exists today is likely to change in the next sixty to ninety days? Are there things that shippers could be and should be doing to protect themselves? While we don’t know everything that will happen with tariffs in the coming months, we do know that there's been a deluge of questions and people are looking to learn more about what strategy for managing tariffs is best for their business.

That’s why on May 7 we’re going to be hosting another important webinar about this topic with our friends from the National Industrial Transportation League (NITL), CSCMP, and the Global Shippers Forum. During the webinar you'll hear from Karyn Booth and Daniel Ujczo from Thompson Hine. And we will also be discussing how shippers can utilize a Tariff Management Program (TMP) to address the challenges associated with the tariff issue.

Looking on the bright side – if there is any – let me share a recent observation that a friend shared with me: “Mike, when there’s chaos and confusion, companies can do very well.” Assuming this situation affects everybody – and with tariffs, it certainly does – how one company manages through that adversity can make a big difference in their financial results. If they do a great job, it can be a competitive advantage against a company that doesn’t do as well.

And that’s why we encourage you to take advantage of resources like our upcoming webinar and improve your ability to manage a situation that will affect your bottom line, cash flows and inventory strategies.  

Before signing off, it is important to note that LTL shippers will also be dealing with a major change in the LTL classification system that will go into effect this July. Since these are the most significant changes affecting LTL since 1980, if you’re not preparing for them, you could see your LTL cost soar. One way to prepare is to take advantage of our LTL Assessment. This analysis will help you understand how the LTL changes could impact you, where you could make changes, and what impact those changes could have on your LTL costs.

If you're interested in learning more about what's involved, just give us a call, send me an email or schedule a time to meet.

BY MIKE REGAN, CO-FOUNDER OF TRANZACT

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