3PLs SLAM VOLATILITY
Navigating Volatility with FTZs
As the tari environment intensi es, shippers increasingly turn to Foreign Trade Zones (FTZs) to manage costs. ese specially designated sites, typically located near U.S. ports of entry, operate as secure areas— technically outside U.S. customs territory—allowing corporations to store and handle goods while deferring or potentially reducing customs, duties, and taxes.
Evans Distribution Systems secures flexible leases at its Detroit distribution center, which allows shippers to adjust warehouse footprints by 25% annually. This flexibility helps Evans rapidly scale storage to match fluctuating customer demands.
help shippers determine if they need to expedite a shipment to meet a jump in demand or if they have enough stock on hand to accommodate the increase. A technology solution can help logistics providers and shippers determine how to direct goods that arrived at a port where cargo is at a standstill by estimating the impact on cost and service levels of remaining at the port versus shifting to over-the- road transportation. Along with technology, human expertise is critical when launching operations in new locations, especially in new countries. Logistics providers can help shippers get any new networks o to a strong start. When starting out in a region, selecting the right partners, such as drayage companies and truckload carriers, is essential to successful operations. “ ere is a lot of complexity that needs to be managed,” Fullerton says. Strong logistics providers, especially those that have local expertise and established operations on the ground, can help shippers make intelligent choices. e supply chains of high-tech and semiconductor companies that move products between Asia and North America are among those that have experienced signi cantly changing
trade policies, capacity constraints, and shifting market conditions over the past year, Chien says. To help its shippers navigate this changing environment, Dimerco leverages its Asia-Paci c operating network, local market expertise, and transportation management capabilities so it can provide alternative routing options and market intelligence. Customers can make more informed decisions when capacity conditions, costs, or transit times change. “ e goal is not simply to move freight, but to help customers maintain supply chain exibility and resilience as market conditions evolve,” Chien says. Strong Partner Bene ts Organizations increasingly need logistics partners that can provide visibility, exibility, and strategic guidance across their broader supply chains as geopolitical uncertainty, demand shifts, and regulatory complexity continue to evolve and global supply chains become more complex. Leading logistics providers help shippers diversify transportation options, improve visibility, and develop contingency plans, such as leveraging regional gateway strategies, to provide multiple options when market conditions change.
e strategic utility of FTZs has shifted, however. A recent regulatory change has diminished their primary cost-savings bene t: Shippers now typically pay the tari rate assessed at the time of entry, rather than the potentially lower rate at the time of release. Despite this, FTZs remain a vital tool for tari deferral. By delaying payment, shippers can preserve essential cash ow during periods of volatile supply chain costs. e data re ects this ongoing interest; logistics providers are aggressively expanding their FTZ footprints to meet demand. For instance, Evans Distribution Systems activated an additional 378,000 square feet of warehouse space as a General Purpose Foreign Trade Zone in April 2025, bringing its total capacity to roughly 2.3 million square feet. For shippers navigating unpredictable trade policies, the FTZ remains a cornerstone to help mitigate tari exposure and maintain operational exibility.
122 Inbound Logistics • July 2026
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