Freight Forwarders and Foreign Trade Zones: Turning Tariff Pressure into Opportunity
Freight forwarders and customs brokers are under pressure in an increasingly unpredictable global trade environment. The 2025 Descartes Forwarder & Broker Benchmark Study reveals an industry caught between today’s operational pressures and tomorrow’s digital promise.
Key Findings from Study
According to the study, global instability (60%), customer pricing pressure (61%), and tariff changes (42%) are among the most significant challenges facing forwarders and brokers over the next five years. Combined with mounting compliance complexity and manual inefficiencies, these forces are reshaping how logistics providers compete, serve customers, and plan for the future.
Amid these pressures lies opportunity, particularly in how forwarders are rethinking global trade management through Foreign Trade Zones (FTZs) and other duty mitigation strategies.
FTZs: From Cost Control to a Competitive Edge
As tariff volatility and trade policy uncertainty grow, more logistics providers are exploring FTZs as a way to offer cost savings and compliance efficiency to customers. The 2025 Benchmark Study found that 14% of respondents now provide FTZ or bonded warehouse services, nearly doubling from 8% in 2023. This growth reflects a strategic pivot, that forwarders aren’t just moving freight, they’re helping customers navigate trade barriers and reduce duty exposure.
How FTZs Can Help Operations Thrive
Customs regulations are only getting more complex. Forwarders relying on manual documentation or outdated systems risk fines, delays, and damaged reputations. Automated compliance tools, customs integration, and audit-ready records ensure you stay ahead instead of constantly playing catch-up.
For forwarders, offering FTZ capabilities strengthens customer relationships and builds loyalty by adding value beyond transport and documentation.
Data-Driven Trade Services: A Growing Demand
The study also revealed a surge in demand for trade-related services designed to mitigate tariff risks. Top customer requests in 2025 include:
✓ Harmonized Tariff Schedule (HTS) classification services (51%)
✓ Duty analysis and forecasting (50%)
✓ Foreign Trade Zone and bonded warehouse support (30%)
✓ Supply chain analytics and mapping (34%)
This data shows that customers are increasingly relying on forwarders for strategic trade insight, not just logistics execution. By integrating FTZ management into their service portfolio, forwarders can respond to these demands while differentiating themselves in a competitive market.
Today’s Pressures: Manual Inefficiencies and Compliance Drag
Despite the promise of digital innovation, the industry remains heavily burdened by manual workflows. The study identifies manual processes (25%) and IT resource constraints (20%) as top inhibitors to growth. This reliance on manual systems creates challenges for forwarders managing FTZs, where documentation accuracy, real-time reporting, and audit readiness are essential. Without automation, these operations can quickly become bottlenecks that consume valuable time and resources.
Tomorrow’s Promise: Technology & Automation
Respondents citing it as highly important. Artificial intelligence (AI) and automation are emerging as key enablers of this transformation. Survey data shows that implementing AI solutions to increase efficiency (42%) has become the top competitive aspiration for the industry.
This shift reflects a growing focus on digital self-service, automated rate management, and intelligent compliance systems to dramatically improve FTZ administration, reporting accuracy, and customer visibility.
The next evolution of freight forwarding will be powered by technology-driven decision-making: dynamically calculating duties, identifying tariff savings opportunities, and actively preventing compliance risks before they arise
How Descartes Supports FTZ-Enabled Forwarders
Growth shouldn’t break your system. Cloud-based platforms with multi-language and multi-currency support let forwarders expand into new markets without hesitation. If your system can’t scale with you, it’s holding you back.
Descartes' forwarder back-office solution helps logistics service providers digitize processes to better coordinate shipments, clear customs, and create “stickier” client relationships. With a comprehensive solution set, local support, and 30+ years of experience, Descartes is the industry leader in software for freight forwarders. From shipment management, customs compliance, rate management, seamless integration, and more, Descartes has you covered.
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