News / Logistics should be ‘as reliable as a light switch’ - Flexport’s new bet on AI

The end of the de minimis exemption has upended global ecommerce logistics, forcing shippers to rethink fulfilment and customs strategies.

As a result, Flexport this week unveiled a suite of new tools aimed at helping importers adapt to the changing trade environment.

The de minimis rule – which allowed low-value imports to enter duty-free – ended first for China in May and globally on 29 August. The move has increased costs for cross-border sellers and encouraged many to shift stock into domestic warehouses.

Flexport said its US fulfilment volumes have doubled this year as retailers relocate inventory. Speaking during the company’s product-launch event for customers, chief executive Ryan Petersen acknowledged that global trade “has been a lot harder the last few years – the last few days even”, citing tariffs, Red Sea disruptions and port strikes.

“We want to make global trade easy so there will be more trade,” he told customers. ”Our approach to this has always been pretty simple. It’s not easy, but it’s simple. We want to take the best technology in the world, the latest in artificial intelligence and data modelling, and pair it with a team of experts who are willing to roll up their sleeves, apply some elbow grease, and solve customers’ logistics problems.”

Air and ocean freight markets remain volatile, with rates fluctuating as carriers adjust capacity and routes.

“We want Flexport to be the easiest place to get access to the best rates on air and ocean freight,” Mr Petersen said, introducing a new Rate Explorer tool that gives users live spot quotes inside the company’s platform. The feature aims to bring airline-style booking convenience to freight – a response to what Mr Petersen described as “a moving target, very volatile prices”.

He also announced Flexport’s new Customs Technology Suite, which automates compliance checks and helps importers manage tariffs that grew more complex after April’s US duty hikes. Mr Petersen said the company had to ask itself “if we’re building the right things for this moment” when tariffs hit earlier in the year.

The suite includes an AI-driven audit system that reviews 100% of entries before filing, plus access to five years of Customs and Border Protection data to identify refund opportunities. Mr Petersen said the company’s duty-drawback technology has already generated “$700m of refunds for our customers” – money which many firms didn’t even know they were owed.

Flexport also launched a Detention and Demurrage Defender to track container deadlines and prevent late-return fees – charges Mr Petersen noted were one of the most hated costs in logistics. The dashboard allows importers to monitor movements and assign responsibility across teams.

Mr Petersen explained that the loss of de minimis accelerated investment in automation and domestic fulfilment. “We’re building toward a world where logistics can be as easy as flipping a light switch.”

Flexport’s competitors aren’t standing still. Maersk, for one, and other global forwarders are increasingly investing in tech upgrades – such as enhanced regional warehouses, digital supply-chain platforms and automation across port and inland operations.