Flexport launches trade finance solution

Flexport is launching a trade finance solution that it claims will help companies alleviate capital constraints caused by the US-China tariffs. Flexport said that because all client shipments are managed on its digital platform, with data down to the SKU level, it views risk differently than a bank would because it has visibility into clients’ supply chain and business health. That allows Flexport to provide “flexible, customised terms�� that help clients to “reinvest into their supply chains, develop new products, or fund an expansion”, the company said. The forwarder said that more than 60% of its shipper clients have had products affected by the tariff increases and that the average landed unit cost has increased by around 30% when comparing the first half of 2019 to 2018. Vice president of Flexport Capital Dan Glazer said: “When I speak to our customers, one of their biggest obstacles to growth is a lack of working capital. They’re growing like crazy, but they don’t have the liquid cash to invest in new products, fulfill orders, pay suppliers, move their freight and cover customs all at the same time.