- Flexport and BlackRock have teamed up to provide $250M in financing for US importers facing steep tariff and duty costs.
- The financing will be managed by Flexport Capital, which has already distributed over $2B since its launch in 2017.
- Importers are dealing with sharply rising costs, including tariffs that in some cases have surged up to 200%, as well as shrinking duty exemptions.
Helping Importers Stay Afloat
Flexport, a logistics and freight company, is partnering with asset management giant BlackRock, reports Bisnow. Together, they are launching $250M in financing to support companies struggling with the rising costs of importing goods into the US. As a result, the program is designed to ease financial pressure on importers. Specifically, it targets businesses that are increasingly caught between upfront inventory purchases and delayed final sales. In doing so, it helps close the cash flow gap that often disrupts operations.
Backed By Flexport Capital
The financing initiative will be overseen by Flexport Capital, Flexport’s in-house lending division. Since its launch in 2017, Flexport Capital has financed over $2B in loans and credit lines for importers. This highlights the growing demand for financial services within the logistics sector.
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Tariff Pressure Intensifies
According to Bloomberg and The Wall Street Journal, importers are seeing tariff bills climb as much as 200% in some cases. Rising customs insurance and additional duties are driving up costs for importers. Many importers are now preparing for the elimination of the “de minimis” duty exemption on shipments valued at $800 or less from China. This exemption is scheduled to end globally this August, adding yet another cost burden to cross-border trade.
A Growing Demand For Trade Financing
As global trade grows more expensive and uncertain, the demand for specialized financial tools is steadily increasing. Consequently, importers are turning to term loans, asset-backed credit, and other financing options to bridge the gap between sourcing products and delivering them to customers.
Flexport Isn’t Alone
In May, HSBC introduced a similar financing product tailored to importers facing tariff-related cash flow issues. Likewise, the emergence of these offerings signals a broader shift in the industry. As a result, trade and logistics firms are rethinking how they manage financial strain brought on by evolving trade policies and rising supply chain costs.
Why It Matters
Rising costs are increasingly putting pressure on small and mid-sized importers. As a result, strategic financing partnerships — such as the one between Flexport and BlackRock — are becoming essential tools. These collaborations play a key role in supporting trade. In turn, they help ensure that goods, and ultimately commerce, continue moving smoothly across borders.
