The international logistics market is facing unprecedented challenges: Trump’s tariff measures, geopolitical tensions in the Red Sea and rising transport costs are forcing new strategies. The reorganisation of global supply chains is making it increasingly important for businesses to have flexible and reliable logistics solutions. How to adapt to these changes, and what can companies do to reduce customs burdens and transport uncertainties? HGL’s experts will help you navigate the changing market environment!
Global logistics and transport have become increasingly unpredictable in recent years. Supply chains operate in an ever-changing environment where geopolitical decisions and trade regulations can quickly upset previously well-established systems.
Donald Trump’s return to the US presidency could pose new challenges to international trade: his announced tariff measures, protectionist policies and tougher action against Asian manufacturing could significantly reshape the global dynamics of trade in goods.
Trump’s previous statements suggest that the US could impose a 60% tariff on products from China and a 25% tariff on products from Europe, and additional taxes on Mexican manufacturers.
This measure is expected to cause a major shift in supply chains, with many companies already looking for alternative suppliers in South East Asia and Latin America. Meanwhile, the EU is preparing its own response, while China is working to diversify its export markets to reduce its dependence on the US market.
Maritime trade enters a new era
In addition to the new customs measures, the maritime transport industry is facing other challenges. Conflicts in the Red Sea and growing geopolitical uncertainty have put one of the world’s most important trade routes, the Suez Canal, at risk. Attacks by Houthi rebels and rising insurance costs have led many shipping companies to opt for a longer and more costly detour around Africa, which can add up to two to three weeks to shipping times. This not only increases logistics costs, but also makes inventory and supply chain planning much more complex.
The impact of these changes will not only affect the big international players. Businesses that rely directly or indirectly on global transport networks may also face serious challenges. Unforeseen cost increases, uncertain delivery times and new market conditions are forcing companies to constantly rethink their logistics strategies. In this environment, choosing the right transport partner becomes critical – companies that can adapt to the rapidly changing market environment and offer flexible, efficient solutions to their customers.
How can logistics companies adapt to changing customs policies?
Global logistics companies need to be flexible to respond to the challenges of a changing customs and geopolitical environment. Leading companies such as Maersk, DHL, FedEx and UPS have implemented a number of strategies to manage the effects of trade wars, tariff increases and regional conflicts, which can have a positive impact on their customers.
Maersk, one of the largest players in the global logistics sector, has recently demonstrated that geopolitical and trade policy changes can not only be reacted to, but also benefited from by proactive strategies. The Copenhagen-based giant recently published its performance for the year 2024, which showed that the company’s performance far exceeded analysts’ expectations despite the global economic situation. The company’s recent development of new supply chain models and delivery routes appears to have lived up to expectations.
Changes in customs restrictions and trade barriers often require the development of new transport routes. DHL, for example, is building more alternative manufacturing and distribution centres as part of its “China+X” strategy, reducing dependence on a single country.
Modern technology also plays a key role in how logistics giants adapt to changes in customs policy. UPS, for example, is using its artificial intelligence-based route optimisation system ORION to save around 100 million miles of unnecessary journeys a year, significantly reducing its fuel consumption.
With higher tariffs resulting from trade conflicts, shippers are also finding creative ways to reduce the burden on customers. UPS, for example, has declared several of its US airports as free zones (FTZs), allowing importers to pay duty only when goods are actually released for domestic use. This allows companies to postpone or even avoid paying customs duties in times of tariff wars, when some products are temporarily subject to high tariffs.
These examples shows that changes in customs policies and geopolitical tensions are not necessarily an obstacle. With the right strategy and an innovative approach, logistics service providers of all sizes can adapt to challenges.
What lies ahead for businesses that need logistics services?
The ever-changing customs policy environment and global logistics challenges mean that businesses need to pay increasing attention to efficient transport strategies. With rising prices, uncertainties in supply chains and new customs measures, planning and choosing the right logistics partner becomes a key factor.
In the current international context, some questions may rightly arise for medium and large companies looking for logistics services. The most important ones are answered below:
- How will the new duties affect my purchasing and transport costs?
Unfortunately, the increase in tariffs directly increases the cost of imported goods, which can lead to more expensive purchases and higher costs. However, with proper logistical planning and a combination of alternative routes and modes of transport, these additional costs can be reduced.
- How much can delivery times increase due to customs controls and administrative restrictions?
Tighter customs controls and more complex administrative procedures may increase delivery times. Unfortunately, this is to be expected, especially for goods from countries affected by customs wars. However, with reliable logistics partners with decades of experience and a pre-clearance strategy, delays can be minimised.
- What alternative routes and modes of transport can help avoid high customs burdens?
Combined, multimodal transport (sea, air, rail and road) offers the possibility to optimise costs. The inclusion of alternative ports, free trade zones and regions with preferential tariffs can also reduce extra costs. At HGL, we know these options and locations well.
- What strategic steps should I take to reduce the risks from tariffs and market changes?
Flexibility and forward planning are key! Existing contracts need to be reviewed, more sources of supply need to be built up, the customs clearance strategy needs to be optimised and alternative logistics strategies should be tried to maintain business stability.
- Is it worth relocating production or sourcing?
Not sure! Regional manufacturing bases should be considered for long-term cost efficiency, but significant savings can also be achieved by optimising transportation strategies, proper customs clearance and route planning without the need for drastic supply chain restructuring.
As a flexible and customer-oriented logistics service provider, HGL Group offers its partners maximum support in finding the ideal solution for their needs. It is important to emphasise that HGL is not a traditional transport company, but a provider of complex logistics services that enable its customers to deliver their products to any destination in the world in the most efficient way possible.