The Need for Exports

Cross-border trade presents Opportunities that are rife with Challenges like fluctuating tariffs

The Opportunities: Global trade is projected to grow by 2.3% annually through 2030 with e-commerce reaching $6.4 trillion by 2024, indicating robust demand that transcend geopolitical shifts but uncertainties loom.

The Challenges: total trade cost are not always accurately estimated and surprises (like tariffs & surcharges) leading to discrepancies between expected and actual total trade cost: this is the Trade Cost Gap which impacts profits

Severity & Impact of That Challenge

On a macro economic perspective, studies estimate the ripple effects of tariffs (trade wars) to span across global supply chains (multiple cross-border legs, inflationary effect including on transport cost) and cost an extra 1.5 % of global GDP and amounting to 1.5 tn = the Global Trade Cost Gap.

On a micro economic perspective, a 10% increase in the total landed price (for instance due to a tariff increase) can lead to 12% decline in sales (as buyers shift to lower-cost competitors) and 14% drop in Gross Margin

Limitation of current set-ups

-Delayed, fragmented data hinders timely visibility of cost increases, leaving traders reliant on outdated market forecasts.

-Supply chain dependencies and fragmented coordination among multiple intermediaries obscure cost adjustments and create bottlenecks.

-Rigid contract terms, including fixed pricing and inflexible payment conditions, prevent rapid responses to volatile tariffs and input costs

-Lengthy Buyer-Seller Processes (From Negotiation to Delivery) prevent from quickly adapting to the changing cost conditions, resulting in lower net profit margins.

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Complete the survey to share your views and receive a summary of the “Bridging the Trade Cost Gap: from tariffs to profits", a TradinLoop publication filled with actionable insights, best practices, and recommendations to close trade cost gaps and enhance competitiveness

Global Trade Cost Survey

New Solution

Based on decades of experience of fixing funding to cash processes and optimizing Buyer-Seller relationships, TradinLoop founders have designed on online platform that addresses these root causes at scale

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New Solution

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Benefits to CFOs

Addressing the Trade Cost Gap not only improves profitability and financial forecasting but also enables to create a competitive advantage by creating an agility that slower competitors will struggle to achieve, leaving them stuck in a spiral of increased cost and reduced demand

Use Case

Take this global manufacturer with globally intertwined supply chains who anticipated the prospective tariff wars and commissioned TradinLoop to support is trade transformation and reached the following benefits:

- Visibility on its total Trade Cost structure

- Ability to quickly negotiate terms with suppliers globally

- Agility to adjust to new tariffs and inflationary factors

- Tracking of Commercial Transactions from quote to cash

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