22 Apr 2025

Strategies for Freight Forwarders Amid Shipping Line Adjustments Under Trump’s 2025 Tariffs on China

Strategies for Freight Forwarders Amid Shipping Line Adjustments Under Trump’s 2025 Tariffs on China

In 2025, following the Trump administration’s imposition of additional tariffs on Chinese goods, several shipping lines canceled U.S. routes due to market uncertainty, leading to a sharp reduction in China-U.S. capacity and a surge in freight rates. Against this backdrop, freight forwarders must innovate service models and integrate resources to help clients reduce transportation costs and ensure supply chain stability. The following strategies are proposed across five key areas: route substitution, multimodal transport, localized partnerships, digital tools, and emergency response.

1. Route Substitution Solutions

  • Develop Alternative Routes: Collaborate with shipping lines in Southeast Asia and the Middle East to launch transshipment routes such as "China-Southeast Asia-U.S." or "China-Middle East-U.S.", leveraging regional ports to diversify risks.
  • Share Slot Resources: Form slot-sharing alliances with small- and medium-sized freight forwarders to aggregate remaining capacity and reduce per-shipment costs. For example, one alliance reduced costs by 15%-20% through slot sharing.

2. Multimodal Transport Integration

  • "Rail + Ocean" Combination: Utilize the China-Europe Railway Express to extend to U.S. West Coast ports, combined with ocean freight to cover the East Coast, shortening transit times and cutting costs.
  • "Air + Ocean" Hybrid Model: For high-value goods, use air freight to regional hubs (e.g., South Korea, Japan) followed by ocean transit to the U.S., balancing speed and cost.

3. Localized Partnership Networks in shipping agent

  • Collaborate with U.S.-Based Forwarders: Establish bilateral partnerships between Chinese and U.S. forwarders to share customs clearance resources and warehousing networks, reducing intermediary fees.
  • Leverage Bonded Zone Policies: Use Chinese bonded zones for cargo consolidation and simple processing to lower export tariff costs.

4. Digital Tool Application

  • Smart Route Planning: Develop AI algorithms to dynamically recommend optimal transport routes based on real-time freight rates, port congestion, and tariff policies.
  • Cost Simulators: Provide clients with freight rate simulation tools that generate cost comparisons for multiple scenarios upon inputting cargo parameters, aiding decision-making.

5. Emergency Response Mechanisms

  • Backup Transport Solution Library: Establish a multi-channel transport network covering air, rail, and ocean freight, with pre-booked slot resources to ensure emergency order switching.
  • Policy Early Warning System: Interface with customs authorities and shipping lines to monitor tariff policies and capacity changes in real time, notifying clients in advance to adjust plans.