US Trade Wars: The Cost for Perishable D2C Shippers

Recent trade issues in the form of tariffs (extra taxes on imported goods) between the U.S. and other countries could make it harder for businesses to ship products affordably. If you sell food or other items that need to stay fresh, these changes could increase your costs and cause delays.

Here’s what you need to know and how to handle it.

1. More Expensive, Unpredictable Shipping Rates

New trade policies could increase shipping costs, primarily due to higher fuel costs. Fuel is a variable, ancillary fee imposed by carriers and the rate is typically adjusted on a weekly basis based on market dynamics. Higher fuel will only make it harder to offer affordable and fast shipping to end consumers.?

What you can do:

• Partner with a 3PL that gives you the ability to ship from multiple, strategically located warehouses, allowing you to reach the highest percentage of the population with cost-effective 1- or 2-day ground shipping.
• Reduce costs by using regional carriers to take advantage of lower rates and more flexible delivery schedules.
• Leverage economies of scale and work with partners that provide access to pre-negotiated, discounted shipping rates and the ability to shift volume across carriers without penalties.?

2. Inventory Control and Contingency Planning

Managing perishable inventory effectively is crucial during trade disruptions. If your products rely on imported ingredients—like coffee, seafood, proteins, or specialty cheeses—tariffs might cause delays and increased costs. Being proactive about inventory control can help prevent shortages and keep your business running without major disruption.

What you can do:

• Partner with fulfillment providers that utilize top-tier Warehouse Management Software (WMS) to accurately track inventory and predict future demand, helping to avoid shortages or overstocking.
• Establish relationships with multiple suppliers, both domestic and international, to maintain a steady supply of key ingredients?
• Plan ahead and keep strategic on-hand reserves of high-demand items to minimize the impact of potential delays.

3. Higher Prices for Packaging and Supplies

Most perishable direct-to-consumer brands use special packaging, like corrugated boxes with?insulated liners and ice packs and/or dry ice, to keep within the cold chain during final mile transit. But some materials are imported and new tariffs could spike costs. Keeping costs under control is important for staying profitable.

What you can do:

• Purchase from U.S.-based suppliers or partners located in countries without tariffs to avoid additional fees.
• Again, source packaging materials from multiple suppliers and leverage competing price quotes for negotiating power
• Since shelf-life is not a concern, consider ordering surplus supplies, which also decreases the cost per unit

How to Stay Ahead

Businesses shipping perishable goods must carefully plan to keep costs down and products moving, especially during times of volatile trade conditions. Partnering with third party providers that offer multiple distribution centers, tech-enabled fulfillment services, and cost-effective logistics solutions will help you stay competitive despite these challenges.

Need Help Reducing Fulfillment and Shipping Costs?

Work with ColdTrack to leverage our core 3-facility network, reaching 77% of the U.S. with 1-day ground shipping, enterprise shipping rates with regional and national carriers, and ColdTrack Live, software built for perishable eCommerce brands.?

Contact us today by emailing [email protected] or message us directly on LinkedIn!