Inside the Minds of Shippers: Findings from Shipwell’s Tariff Survey

Written by: Jason Traff–President & Co-founder‍

Shippers are navigating uncharted waters. With supply chain tariffs disrupting the cost of goods and materials, our recent virtual roundtable unpacked findings from Shipwell's survey on how businesses are adapting their supply chain strategies to navigate these challenges. Expert consultants Venky Ramesh and Abhijit Boora of AlixPartners and supply chain industry leaders were in attendance, while Jon Xiu and I helped drive the discussion.

Let’s dive into the survey results and the observations made during the conversation, highlighting the trends, challenges, and actions shippers are taking to stay ahead. And, if you’d like more economic context to help ground the discussion, see AlixPartner’s insights.

Supply Chain Tariffs Force a Multi-Pronged, Strategic Approach

When asked about how tariff changes have impacted their transportation and supply chain strategies, nearly all survey respondents indicated they are implementing multiple strategies simultaneously. This reflects the growing complexity of supply chains, especially as tariffs continue to disrupt sourcing, production, and shipping.

As Jon noted during the discussion, "The ones that are doing something about tariffs aren’t just picking one lever—they're implementing a multi-pronged approach to mitigate these impacts. It's about tackling multiple aspects of their supply chain at once."

Key Strategies Include:

• Sourcing and Network Adjustments: Many mid-market companies are redirecting their supplier base, particularly away from tariff-heavy regions like China, to countries such as Vietnam and Mexico. This approach is more common among small-to-mid-sized businesses (SMBs) and mid-market companies, which are inherently more nimble.
• Inventory Strategy Modifications: Enterprises are focusing on inventory management, including forward-staging inventory in bonded warehouses to avoid sudden tariff hikes. Many of our customers report increased bonded warehouse usage as a key part of their inventory strategy.
• Technology Investments: Enterprises are leading the way in deploying visibility and analytics tools to gain real-time insights into their supply chains. Conversely, SMBs and mid-market companies are lagging behind in leveraging technology, often due to resource constraints.

While all respondents are taking steps to adapt, the data shows that enterprise companies focus more on strategic, long-term solutions like technology, while SMBs and mid-market companies prioritize tactical changes such as sourcing adjustments.

Tariff Impacts on Supply Chain: Raw Materials vs. Finished Goods

The survey revealed that supply chain tariffs are affecting goods & materials across the board, but the specific impact varies by company size and industry:

• SMBs Feel the Pressure on Raw Materials: With limited negotiating power and fewer long-term supplier contracts, SMBs report raw materials as the most affected area. 
• Enterprises Face Broad Disruptions: Larger companies, with more complex supply chains, are seeing impacts across finished goods, components, and raw materials alike. 

"Across industries, we’re seeing the severity of impact vary widely depending on materials used, points of manufacture–it’s all about where the vulnerabilities lie within the supply chain." - Jon Xiu, reflecting on the diversity of survey responses.

Cost Mitigation: Missed Opportunities in Tariff Engineering

Cost mitigation remains a top priority, but the survey revealed that many companies are underutilizing some of the most effective tools at their disposal:

• Commercial Adjustments Dominate: The majority of mid-market and enterprise respondents are renegotiating contracts with suppliers and customers. This is a logical first move, leveraging long-term relationships to offset cost increases.
• Limited Use of Technical Levers: Surprisingly, few respondents reported using strategies like tariff engineering, reclassification, or duty drawbacks. Abhijit highlighted this as a missed opportunity: "The first-sale mechanism alone can reduce tariff burdens by 8–10% without changing your supplier base. It’s a no-regret move that more companies should explore."
• Absorbing Costs: Around 35% of respondents are taking a wait-and-see approach, absorbing tariff costs rather than making immediate changes. While this may work in the short term, it’s not a sustainable strategy if tariffs persist or escalate.

Top Challenges: Cost Uncertainty and Internal Coordination

When asked about the most significant challenges in managing the tariff impacts on supply chains, respondents overwhelmingly pointed to cost uncertainty and the resulting financial implications. This was consistent across all company sizes and industries. Other challenges included:

• Navigating Compliance and Regulatory Changes: SMBs and mid-market companies struggle with the technical expertise required to stay compliant with evolving trade policies.
• Operational Disruptions: Enterprises cited internal coordination and resource allocation as significant hurdles, given the complexity of their supply chains.

"Proper understanding and exploitation of tariff engineering tools require a cross-functional approach. Procurement, supply chain, and legal teams need to work together to identify and act on opportunities." - Abhijit Boora, emphasizing the importance of collaboration.

Collaboration and Technology: The Way Forward

The survey also highlighted a strong appetite for collaboration and knowledge sharing within the supply chain community. Respondents expressed interest in discussing topics like compliance, sourcing strategies, and cost mitigation tactics with their peers. As I note, "No one has a silver bullet right now—sharing insights and strategies is critical as we navigate this together."

Technology also emerged as a critical enabler. Companies that invest in visibility tools and data analytics are better equipped to respond to tariff volatility. Venky from AlixPartners explained, "The ability to forecast and simulate scenarios is key. Companies need to know how different tariff scenarios will impact their supply chains so they can act quickly and strategically."

How Shipwell’s TMS helps shippers

We also highlighted how Shipwell is a key enabler for SMBs and mid-market companies looking to level the playing field. Unlike traditional TMS platforms that are often expensive and complex, Shipwell’s cloud-based solution is designed to be affordable, easy to implement, and highly configurable. This makes it an ideal choice for companies that need to react quickly to supply chain tariffs affecting their shipments. 

• Real-Time Visibility: Shipwell’s TMS provides end-to-end visibility into shipments, enabling companies to track their goods in real time and make proactive decisions. This is especially critical during periods of tariff uncertainty, where delays or disruptions can lead to significant cost increases.
• Scenario Planning and Forecasting: The platform’s advanced analytics tools allow companies to simulate different scenarios, such as shifting suppliers or rerouting shipments, to understand the potential cost and operational impacts.
• Faster Decision-Making: By centralizing data and automating workflows, Shipwell’s TMS shortens the time between insight and action. As Jason Traff, Shipwell’s co-founder, noted, “Transportation departments are being tasked with data gathering operations they never would have thought of 10 years ago. Having access to technology and being able to come up with answers faster are no-regret moves.”
• Cost Savings: Shipwell’s TMS helps companies optimize routes, reduce empty miles, and benchmark rates to ensure they are getting the best value for their transportation spend.

For SMBs and mid-market companies, which often lack the resources of larger enterprises, these capabilities can make a significant difference. 

Turning Obstacles into Possibilities

The survey results and roundtable discussion underscored a few critical themes for shippers:

1. Adaptability is Key: Whether through tactical adjustments or long-term investments, companies need to remain agile in the face of tariff volatility.
2. Leverage Underutilized Tools: Strategies like the first-sale mechanism and HTS code optimization can provide immediate relief without major disruptions.
3. Invest in Technology: Visibility and analytics are no longer optional—they’re essential for navigating uncertainty and maintaining competitiveness.
4. Collaborate and Share Knowledge: No one has all the answers. Open dialogue within the supply chain community can help uncover new strategies and solutions.

While the tariff era presents undeniable challenges, it also offers opportunities for companies to build more resilient, supply chain strategies. By taking proactive steps and leveraging the right tools, shippers can survive and thrive in this environment.

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