Navigating trade between the USA and Ireland through supply chain partnerships
Global 3PL Logistics company, Crane Worldwide, recently opened a 126,000 square feet warehouse in Cork.
With the new Trump administration firmly established in the USA, international trade policies are a key focus as we approach 2025.
The new President's America First Trade Policy is a central priority, and the implications of import tariffs will be significant for many Irish businesses exporting to the United States.
China, Mexico, and Canada have been central to discussions concerning potential import tariffs. However, the United States remains an important trade partner for the European Union, and any movement towards import tariffs could substantially impact member countries, including Ireland.
Ireland has a close trading relationship with the United States for pharmaceutical products, organic chemicals, medical instruments, and beverages. If tariffs are implemented in 2025, Irish exports may face challenges.
Supply chain professionals excel in navigating economic and geopolitical changes. In recent years, supply chain agility has faced significant challenges. For instance, disruptions in the Middle East led to container ships being rerouted around the Cape of Good Hope in South Africa, resulting in an additional 3,500 nautical miles (6,500 km) and 10 to 12 days of sailing time for goods to reach their destination.
Although the COVID-19 pandemic resulted in airspace shutdowns, a critical demand remained for items such as batteries from China for example, to meet the increased demand for ventilators.
The distribution of vaccines and related equipment became a crucial success factor for many countries grappling with the nationwide lockdowns. International supply chains captured global attention as the unprecedented importance of inbound cargo became evident.
Interestingly, supply chain partnerships have significantly evolved beyond solely importing and exporting. They now offer fully integrated services, including logistics solutions such as freight forwarding, warehousing, packaging, and international trade advisory services.
Significant technological investments have enhanced the visibility and tracking of shipments from purchase orders to final product deliveries. Each step in the supply chain process highlights data's role in identifying potential cost savings. Consumers are increasingly demanding faster deliveries and, importantly, value for their money.
Identifying cost savings in the supply chain As speculation about potential tariffs on imports into the United States grows, it becomes paramount for Irish and American companies to fully comprehend the costs associated with their global supply chains. With more data available for analysis — typically through third parties like 3PL logistics partners — every avenue of cost reduction could bring them closer to gaining a competitive edge.
In addition to multimodal transportation and warehousing, some third-party logistics providers offer international trade advisory services.
For instance, Crane Worldwide Logistics, a Houston-based third-party logistics provider that opened a 126,000 sq.ft warehouse in Cork last year, has recently underscored the potential benefits of the customs duty drawback program in light of the America First Trade Policy.
A drawback refers to the refund of specific duties, internal revenue taxes, and certain fees collected when importing goods into the United States. These refunds are permitted only when goods are exported or destroyed under the supervision of U.S. Customs and Border Protection.
Duty Drawback is an incentive scheme that allows importers, exporters, and manufacturers to recover customs duties in the United States.
Supply chain partnerships will continue to be pivotal in maintaining cost-effective trade between Ireland and the United States.
Leveraging the data and expertise of manufacturers and supply chain professionals will be vital for many global organisations' success.
Navigating the potential challenges of the ever-evolving landscape of international trade will provide international companies with the competitive advantage necessary to thrive in the global business arena.
