The 2:00 Minute Warning

Earlier today we hosted our second tariff webcast with our friends from the National Industrial Transportation League (NITL) and CSCMP. We’ve received very positive comments from the audience because our resources did a great job in updating shippers on the changes that are constantly occurring with tariffs.
 
Stay tuned for the replay and in the meantime, check out the recording of our first tariff webinar that was held one day after the reciprocal tariffs were announced. Today's webinar featured several key takeaways that every shipper should heed.

First, as our resources shared information about all the different tariffs, the China ship tax and many of the “hidden gems” it became glaringly obvious: Companies that don’t have a written Tariff Management Plan are playing "Supply Chain Tariff Roulette." And tariffs are a bullet that can really hurt or even kill your company. Here in Chicago, the Tribune and Sun-Times have both written numerous articles about substantial long standing companies whose very existence is in jeopardy because of the tariffs.
 
Second, there is a high level of uncertainty and confusion about which tariffs will apply, when and how they will be assessed, and how supply chains will be disrupted. With all this uncertainty, now more than ever, your team can benefit from running scenario planning exercises and creating strategies to manage the threats posed by tariffs.
 
Third, companies should assess how certain changes will impact particular parts of their supply chain. For example, on May 2, the de minimis exemption expired for packages under $800 and going forward they will be treated much differently. They no longer will have an expedited entry process or enter duty free. About 1.6 billion packages previously came into the U.S. through this de minimis exemption and it has a huge impact on what shippers could be dealing with in coming months.
 
Add it all up and it’s plain to see: If your company doesn’t have a Tariff Management Plan, call TranzAct now (630-833-0890) because without a plan your company will be operating in fire fighting mode as you react to a bunch of unpleasant surprises! Our resources confirmed that since this issue is so critically important to your company’s financial well-being, time is of the essence and you need to act now!

TranzAct has the tools and experience to help put together a Tariff Management Plan. This plan will cover other items that help your company quantify the economic impact of tariffs, look at how tariffs will affect your cash flow and inventory strategies, and provide options for dealing with the tariffs, plus how different INCO terms can be used to manage the tariffs. To learn more about what’s involved, get in touch.
 
Before leaving, one item we want to highlight this week is recent changes that UPS has made involving accessorial charges. While these and other parcel charges may look small on the surface, when they impact thousands or even millions of packages, they can add up to a significant amount. And that’s why our parcel expert Dariusz sent me a note saying, “Mike you have to make people aware that we have tools that can help people manage these changes.”
 
If you’re interested in learning more about our parcel tools or the Tariff Management Plan, give us a call, send me an email or better yet, let’s schedule a brief call to learn more about your company needs and how TranzAct can partner with you to help manage your logistics costs and strengthen your supply chain.

BY MIKE REGAN, CO-FOUNDER OF TRANZACT

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