U-Freight Group (UFL) says recent changes to US trade policy; particularly the removal of the de minimis threshold for duty-free imports, could bring opportunities as well as threats to freight forwarders.
UFL reports that instead of shipping individual orders directly to US consumers from overseas, several of its clients are pivoting to bulk shipping models — moving inventory in larger volumes into the US for domestic storage and fulfilment.
It argues that shipping in bulk for local fulfilment offers several upsides. Businesses can now pay duties based on wholesale costs, which are typically lower than the retail value of individual DTC shipments. This allows them to avoid surprising customers with unexpected import fees, reduce per-unit shipping and logistics costs, improve delivery speeds by utilising US fulfilment centres and maintain price competitiveness in the U.S. market, even without the benefit of duty-free thresholds.
UF says its network of distribution centres and experience in cross-border e-commerce logistics makes it well-positioned to support businesses making this transition.
U-Freight America chief executive Rick Keller said: “This change is driving a reassessment of supply chain models. Many shippers are now identifying which of their SKUs previously benefited from the de minimis exemption. They are running detailed cost simulations that factor in duties, tariffs, and various fulfilment strategies to find the most economical way forward.”
