Trade financing offer to Flexport customers hit by tariffs

© Engdao Wichitpunya

I know, we are at risk of running too many stories about Flexport this week, but this is interesting. Flexport is offering customers a financing solution to help “alleviate the working capital constraints caused by US-China tariffs”. 

Customers of Flexport, which specialises in China to US tradelanes, are highly likely to have been affected by tariffs, and vice president of Flexport Capital Dan Glazer notes that customers are “spread too thin” and have been constrained by the tariffs.  

“Unless we can provide companies with a way to manage their finances in a sustainable, long-term manner, both US businesses and the economy will stagnate. By helping companies through smart financial instruments designed for the global trade process, businesses will be able to better steer through the chaos and find new ways to thrive and innovate.” 

He added: “The average landed unit cost has increased by about 30% due to the tariffs when comparing the first half of 2019 to 2018.” 

While acknowledging that “trade financing won’t eliminate the new costs or headaches spurred by the tariffs,” he said that “it can, however, help companies manage the financial stress of new duty payments and the table-stakes expenses companies face”.