The Dimerco-sponsored Freight Buyers’ Club podcast was busy at the recent TPM event, speaking with industry leaders about the rapidly changing trade environment. Read on for a high-level summary of the insights shared, and listen to the clips for a deeper dive.
Tariffs and Policy Uncertainty: The Business Impact
How are businesses supposed to plan for the future when trade policies keep shifting? That’s the challenge facing many companies as the U.S. imposes new tariffs, adding another layer of uncertainty to supply chains.
Bingham highlighted that businesses are struggling to make long-term decisions amidst policy volatility. “Risk has a price, and that obviously then has an impact back on the aggregate economy,” he noted. “If all businesses are holding back, if consumers are holding back even on purchases because of threatened tariffs, or if they’re accelerating purchases on tariffs and then that pulls ahead growth now that maybe fades in the future, it has impacts on the economy that are unquestionable.” Companies must weigh immediate cost increases against potential retaliatory actions from trade partners. If tariffs persist, supply chains may see shifts away from traditional manufacturing hubs.
Hapag-Lloyd CEO on the Gemini Alliance & Reliability in Ocean Shipping
Rolf Habben-Jansen, CEO of Hapag-Lloyd, discussed the company’s investment priorities and their participation in the Gemini Cooperation with Maersk. This is designed to improve schedule reliability to nearly 90%, which represents a significant enhancement compared to past industry standards.
When asked if shippers are willing to pay more for reliability, Habben-Jansen suggested that cost-competitive, dependable services will always hold value. With better reliability, businesses can reduce inventory buffer requirements, potentially justifying slightly higher freight rates.
The conversation also touched on the risks of hub-and-spoke networks, with some critics arguing they could lead to feeder service disruptions.
Long Beach Port’s Record Year & Future-Proofing Investments
Dr. Noel Hacegaba, Chief Operating Officer at the Port of Long Beach, shared that 2024 was a record-breaking year, with 9.6 million TEUs handled. This growth was partly driven by cargo diversions from East Coast ports due to labor disputes and concerns about tariffs.
As shippers look for reliable West Coast options, logistics providers with established regional expertise continue to play a key role in supporting efficient cargo flow. To maintain its competitive edge, Long Beach is investing $2.3 billion over the next decade, focusing on infrastructure, expanded rail capacity, and zero-emissions technology. Hacegaba emphasized that while global trade patterns fluctuate, the port’s reliability and capacity make it an attractive option for shippers.
Tariffs & Retailers’ Supply Chain Dilemmas
Jon Gold, VP of Supply Chain and Customs Policy at the National Retail Federation, echoed concerns about policy unpredictability. New U.S. tariffs on steel, aluminum, and potentially autos add another layer of complexity for retailers.
As a result, retailers are now facing difficult choices, with some opting to absorb higher costs, while others seek alternative suppliers despite limited options.
The rapid shifts in trade policies are making it harder to develop stable, long-term supply chain strategies. Gold explained that past trade tensions led many companies to shift sourcing away from China. However, with new tariffs now targeting Southeast Asia and Mexico, businesses are running out of alternative manufacturing locations. The lack of long-term trade stability is making it nearly impossible for retailers to plan effectively.
MSC’s Expansion & Shipping Market Volatility
Lars Jensen, CEO of Vespucci Maritime, discussed MSC’s acquisition of Hutchison’s ports and its potential impact on the shipping industry. “We are talking 45 ports around 23 different countries… If this is true, this could potentially catapult MSC to de facto be one of the world’s very, very largest terminal operators,” he noted. With increased control over key hubs, MSC could enhance its operational efficiency. However, Jensen cautioned that while this expansion strengthens MSC’s position, it does not necessarily equate to the same level of schedule reliability offered by Maersk and Hapag-Lloyd.
He also highlighted the extreme volatility in shipping rates, attributing it to geopolitical tensions and evolving trade policies. He said that contract negotiations at TPM reflected this uncertainty, with many shippers seeking contingency plans and index-linked pricing to protect against unpredictable rate fluctuations.
What This All Means for Shippers
The overarching theme from these discussions is the need for adaptability. Whether it’s tariff shifts, changing carrier strategies, or port investments, companies must stay agile in an increasingly turbulent market.
As a global logistics specialist, Dimerco helps businesses navigate these complexities with tailored supply chain solutions, trade compliance expertise, and end-to-end logistics support.
For more expert perspectives on trade and logistics, listen to the latest episodes of the Freight Buyers’ Club and subscribe for direct access to trade insights, shipping trends, and expert perspectives from industry leaders.
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