Latest news with #Portless
Business Insider
29-05-2025
- Business
- Business Insider
This logistics startup is getting 'buried in inbound' from brands after de minimis ended. It just raised $18 million.
Portless, a logistics startup that helps brands to offer quick shipping, has raised $18 million in a Series A funding round led by Commerce Ventures. FJ Labs, eGateway Capital, Red Swan Ventures, and Group Up Ventures also contributed to the round. Portless offers Western brands the chance to use a shipping and fulfillment model made popular by Shein. Shein grew to dominate the fast-fashion world by responding quickly to changing style trends and shipping packages on planes going directly to customers from warehouses in China. Products cross borders in a matter of days rather than months. For years, Shein did this using the de minimis provision, which allows for the duty-free import of packages valued at less than $800. Portless emulates this model by shipping from its fulfillment center in Shenzhen, China, near where many of its customers manufacture their goods. For a while, it also used the de minimis exemption. However, on May 2, the Trump administration ended de minimis shipping as part of its tariff program. That meant many companies had to pivot. Portless' founder and CEO, Izzy Rosenzweig, told Business Insider that the company had been preparing for the end of de minimis since last September. It raised its Series A with the understanding that de minimis would be ending. Rosenzweig said that with tariffs disrupting global supply chains, Portless' pitch is resonating with many brands. By fulfilling orders outside the US, the company can help brands defer their duty payments until an order crosses the border on its way to a customer. Portless uses an informal entry process called Type 11 to import the goods to the US. It pays duties on behalf of its brand customers, who then pay Portless back later. "There isn't a company in the US that isn't looking for a new way of doing things," Rosenzweig said. "We're getting buried in inbound." Businesses impacted by tariffs and the end of de minimis have also explored other strategies, like storing inventory in bonded warehouses and foreign trade zones, to defer their duty payments and lessen the hit on their balance sheets. Portless typically works with mid-market brands earning between $5 million and $150 million in annual revenue. Rosenzweig said brands of that size benefit the most from having better access to cash, which Portless helps with by fulfilling small orders by plane instead of tying up large amounts of inventory on shipping containers. "In our model, it is like a live supply chain," he said. "You're reacting immediately to the demand." Its customers include home wellness device brand Canopy, kids' clothing brand Andy & Evan, and apparel brand SA Fishing. Building a 'supply-chain-as-a-service' company Before creating Portless, Rosenzweig founded an online marketplace called Browze that sourced products directly from factories in China. In his 10 years running the company, he saw firsthand how complicated global supply chains are. He said Portless plans to use the funding to expand into new markets. It has a new fulfillment center in Vietnam and plans to open another in India by the end of the third quarter. The company also plans to build more services to help brands improve their supply chain. It plans to introduce the ability to book quality control inspections through its customer portal within the next two months. "While today Portless is fundamentally changing cash flow with a new supply chain model, we want to simplify supply chain," Rosenzweig said. "A lot of things will change in our model, like small-batch manufacturing, and we'll be rolling out services." Commerce Ventures partner Matt Nichols said the firm led Portless' Series A because it believes "that the 'direct-ship-from-manufacturer' model will be the future for much of retail." He said that they invested with the assumption that the de minimis loophole would go away. "We were able to get comfortable by talking to many of Portless' customers and finding out that the tax advantage was not the reason they decided to choose Portless," he said. "They were all focused on aligning production volumes with actual demand, and this was the best model to facilitate that."
Business Times
15-05-2025
- Business
- Business Times
Retailers rush to save US summer shopping season
[NEW YORK] US retailers including Walmart and several clothing brands are racing to secure China-made merchandise for the busy summer shopping season starting in late May after Washington and Beijing agreed to temporarily slash tariffs. The agreement on Monday to lower US tariffs on shipments from China to 30 per cent from 145 per cent for the next three months prompted a restart in orders and shipments for sundresses, bathing suits, clogs and sunscreens from Chinese factories, according to logistics company Portless, which helps US e-commerce brands import goods from China via air. 'Once the tariff cut was announced, our clients said 'we are in go-go-go mode,'' said Izzy Rosenzweig, CEO of Portless, which counts swimwear brand Hapari, and bug repellent maker NatPat among its clients. 'They said 'let's restart production and let's restart shipping.'' US businesses largely rely on ocean shipping but that can take between 30 and 60 days for goods to reach the United States from China, depending on the destination and ship size, although orders for the summer can start in late winter or early spring to allow for the manufacturing of new designs, John Harmon, managing director of technology research at Coresight Research, said. US retailers and apparel companies typically begin shipping merchandise from China at least two to three months before the summer season starts on Memorial Day, which this year falls on May 26. But after US President Donald Trump hit Beijing with retaliatory and fentanyl tariffs totaling 145 per cent on April 9, several US companies paused their orders. Container bookings from China to the US fell nearly 50 per cent in the last week of April, according to data provided to brokerage TD Cowen by container tracking firm Vizion. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up This trend went into reverse on Monday, but Harmon said restarting supply chains after the April pause could take some time. 'It has been super busy these two days,' said Liu, a toy manufacturer from the export hub of Dongguan in southern China, who declined to give her full name for privacy reasons. 'We are booking containers and some of our goods are already on the way to Shenzhen port. In recent months there were fewer cargo buses on the road but today ... there is a traffic jam on the way to the port,' said Liu, who serves customers including Walmart, the biggest single importer of container goods into the United States. Consumer products maker Newell Brands, which also counts Walmart as a customer, said on Thursday it had resumed shipments of Graco strollers and baby seats that it had stored in warehouses in China. Container-costs worries Despite the rush to deliver goods to the US, freight rates have not yet spiked. The spot rate to send a 12 m container from China to the US West Coast rose 3 per cent week-on-week to US$2,395 on Monday, data from freight booking and payments platform Freightos shows, indicating that businesses were not swamping shippers with bookings. This is half of the price in February, when many large players were rushing to stock up to defuse the expected tariff action by Trump. But companies like Bogg Bag are starting to worry that container costs are soon going to go through the roof. Kim Vaccarella, CEO of the tote-bag maker, sold at retailers including Target, said on Wednesday that she has drastically sped up manufacturing for her China-made totes to get as many as possible en route to New Jersey by August. She is sticking to a few popular items instead of many new products at once so that they can move fast. Even though China and the United States agreed to lower tariffs while trade talks continue, the US maintained a 30 per cent levy on imports of Chinese goods, which is going to pinch both large and small retailers in coming months. Walmart executives said following the group's earnings report on Thursday that it could start raising prices by the end of May, while German sandal maker Birkenstock said it would hike prices globally. Along with Walmart, Costco and Target front-loaded orders at the start of the year, CFRA research analyst Arun Sundaram wrote in a note on May 13. Walmart's inventories rose about 3% in the quarter ended January 31, its first rise in nearly two years, Sundaram said. At warehouse club chain Costco, inventories were up nearly 10%, while those of surf and skateboard apparel retailer Zumiez rose about 14% in the three months to February. Target's inventories increased 7% during the same period. While Monday's tariff reprieve is a potential boon for U.S. brands eager to stock up on summer merchandise, the current rush may create supply-chain bottlenecks, though likely less severe than during the pandemic years of 2021-2022, said Sundaram, who expects a rise in freight costs. Some manufacturers of Halloween decorations told Reuters on Wednesday that they would have to scramble to produce and ship hanging skeletons and costume props to the United States within the 90-day window. Gene Seroka, executive director of the Port of Los Angeles, said businesses may not be able to fully prepare for both summer and back-to-school in July, another big retail selling season. 'Right now we're looking at the last orders that would go in for back-to-school, and maybe some lingering orders for summer fashion. So that's really tight,' Seroka said. Stephen Lamar, who heads the American Apparel & Footwear Association, which counts Adidas America as a member, flagged a risk of congestion at ports if hundreds of companies rush to bring in goods now. 'The tariff war has delayed back-to-school shipping by a month. But it's not like school districts can delay school by a month,' Lamar said. REUTERS
Business of Fashion
15-05-2025
- Business
- Business of Fashion
Retailers Rush to Save US Summer Shopping Season
US retailers including Walmart and several clothing brands are racing to secure China-made merchandise for the busy summer shopping season starting in late May after Washington and Beijing agreed to temporarily slash tariffs. The agreement on Monday to lower US tariffs on shipments from China to 30 percent from 145 percent for the next three months prompted a restart in orders and shipments for sundresses, bathing suits, clogs and sunscreens from Chinese factories, according to logistics company Portless, which helps US e-commerce brands import goods from China via air. 'Once the tariff cut was announced, our clients said 'we are in go-go-go mode,'' said Izzy Rosenzweig, CEO of Portless, which counts swimwear brand Hapari, and bug repellent maker NatPat among its clients. 'They said 'let's restart production and let's restart shipping.'' US businesses largely rely on ocean shipping but that can take between 30 and 60 days for goods to reach the United States from China, depending on the destination and ship size, although orders for the summer can start in late winter or early spring to allow for the manufacturing of new designs, John Harmon, managing director of technology research at Coresight Research, said. ADVERTISEMENT US retailers and apparel companies typically begin shipping merchandise from China at least two to three months before the summer season starts on Memorial Day, which this year falls on May 26. But after US President Donald Trump hit Beijing with retaliatory and fentanyl tariffs totaling 145 percent on April 9, several US companies paused their orders. Container bookings from China to the US fell nearly 50 percent in the last week of April, according to data provided to brokerage TD Cowen by container tracking firm Vizion. This trend went into reverse on Monday, but Harmon said restarting supply chains after the April pause could take some time. 'It has been super busy these two days,' said Liu, a toy manufacturer from the export hub of Dongguan in Southern China, who declined to give her full name for privacy reasons. 'We are booking containers and some of our goods are already on the way to Shenzhen port. In recent months there were fewer cargo buses on the road but today ... there is a traffic jam on the way to the port,' said Liu, who serves customers including Walmart, the biggest single importer of container goods into the United States. Container-costs worries Despite the rush to deliver goods to the US, freight rates have not yet spiked. The spot rate to send a 40-foot (12 m) container from China to the US West Coast rose 3 percent week-on-week to $2,395 on Monday, data from freight booking and payments platform Freightos shows, indicating that businesses were not swamping shippers with bookings. This is half of the price in February, when many large players were rushing to stock up to defuse the expected tariff action by Trump. But companies like Bogg Bag are starting to worry that container costs are soon going to go through the roof. Kim Vaccarella, CEO of the tote-bag maker, sold at retailers including Target, said on Wednesday that she has drastically sped up manufacturing for her China-made totes to get as many as possible en route to New Jersey by August. She is sticking to a few popular items instead of many new products at once so that they can move fast. ADVERTISEMENT Retailers including Walmart, which reports earnings on Thursday, and rivals Costco and Target front-loaded orders at the start of the year, CFRA research analyst Arun Sundaram wrote in a note on May 13. Walmart's inventories rose about 3 percent in the quarter ended January 31, its first rise in nearly two years, Sundaram said. At warehouse club chain Costco, inventories were up nearly 10 percent, while those of surf and skateboard apparel retailer Zumiez rose about 14 percent in the three months to February. Target's inventories rose 7 percent during the same period. While Monday's tariff reprieve is a potential boon for US brands eager to stock up on summer merchandise, the current rush may create supply-chain bottlenecks, though likely less severe than during the pandemic years of 2021-2022, said Sundaram, who expects a rise in freight costs. Some manufacturers of Halloween decorations told Reuters on Wednesday that they would have to scramble to produce and ship hanging skeletons and costume props to the United States within the 90-day window. Gene Seroka, executive director of the Port of Los Angeles, said businesses may not be able to fully prepare for both summer and back-to-school in July, another big retail selling season. 'Right now we're looking at the last orders that would go in for back-to-school, and maybe some lingering orders for summer fashion. So that's really tight,' Seroka said. Stephen Lamar, who heads the American Apparel & Footwear Association, which counts Adidas America as a member, flagged a risk of congestion at ports if hundreds of companies rush to bring in goods now. ADVERTISEMENT 'The tariff war has delayed back-to-school shipping by a month. But it's not like school districts can delay school by a month,' Lamar said. By Siddharth Cavale, Casey Hall, Nicholas Brown, Jessica DiNapoli, Lisa Baertlein; Editors: Lisa Jucca, Matthew Lewis Learn more: Tariff Windfall Tests Limits of India's Apparel Factories As US retailers shift orders from China and Bangladesh to capitalise on lower tariffs, apparel factories in India's textile hub of Tiruppur are scrambling to meet demand and are held back by a deepening skilled labour shortage, cost pressures, and fragmented manufacturing capacity.
Time of India
15-05-2025
- Business
- Time of India
Retailers rush to save US summer shopping season
HighlightsU.S. retailers, including Walmart and various clothing brands, are ramping up orders for China-made merchandise in anticipation of the busy summer shopping season following a temporary reduction in tariffs from 145 percent to 30 percent. Manufacturers in China, such as those based in Dongguan, are experiencing a surge in container bookings and are actively shipping goods to the United States, despite concerns about potential supply chain bottlenecks and rising freight costs. The American Apparel & Footwear Association warns of potential congestion at ports as numerous companies rush to import goods, highlighting the challenges in synchronizing summer merchandise with back-to-school inventory amid ongoing tariff impacts. U.S. retailers including Walmart and several clothing brands are racing to secure China-made merchandise for the busy summer shopping season starting in late May after Washington and Beijing agreed to temporarily slash tariffs. The agreement on Monday to lower U.S. tariffs on shipments from China to 30 per cent from 145 per cent for the next three months prompted a restart in orders and shipments for sundresses, bathing suits, clogs and sunscreens from Chinese factories, according to logistics company Portless, which helps U.S. e-commerce brands import goods from China via air. "Once the tariff cut was announced, our clients said 'we are in go-go-go mode,'" said Izzy Rosenzweig, CEO of Portless, which counts swimwear brand Hapari, and bug repellent maker NatPat among its clients. "They said 'let's restart production and let's restart shipping.'" U.S. businesses largely rely on ocean shipping but that can take between 30 and 60 days for goods to reach the United States from China, depending on the destination and ship size, although orders for the summer can start in late winter or early spring to allow for the manufacturing of new designs, John Harmon, managing director of technology research at Coresight Research, said. U.S. retailers and apparel companies typically begin shipping merchandise from China at least two to three months before the summer season starts on Memorial Day, which this year falls on May 26. But after U.S. President Donald Trump hit Beijing with retaliatory and fentanyl tariffs totaling 145 per cent on April 9, several U.S. companies paused their orders. Container bookings from China to the U.S. fell nearly 50 per cent in the last week of April, according to data provided to brokerage TD Cowen by container tracking firm Vizion. This trend went into reverse on Monday, but Harmon said restarting supply chains after the April pause could take some time. "It has been super busy these two days," said Liu, a toy manufacturer from the export hub of Dongguan in Southern China, who declined to give her full name for privacy reasons. "We are booking containers and some of our goods are already on the way to Shenzhen port. In recent months there were fewer cargo buses on the road but today ... there is a traffic jam on the way to the port," said Liu, who serves customers including Walmart, the biggest single importer of container goods into the United States. Container-Costs Worries Despite the rush to deliver goods to the U.S., freight rates have not yet spiked. The spot rate to send a 40-foot (12 m) container from China to the U.S. West Coast rose 3 per cent week-on-week to USD 2,395 on Monday, data from freight booking and payments platform Freightos shows, indicating that businesses were not swamping shippers with bookings. This is half of the price in February, when many large players were rushing to stock up to defuse the expected tariff action by Trump. But companies like Bogg Bag are starting to worry that container costs are soon going to go through the roof. Kim Vaccarella, CEO of the tote-bag maker, sold at retailers including Target, said on Wednesday that she has drastically sped up manufacturing for her China-made totes to get as many as possible en route to New Jersey by August. She is sticking to a few popular items instead of many new products at once so that they can move fast. Retailers including Walmart, which reports earnings on Thursday, and rivals Costco and Target front-loaded orders at the start of the year, CFRA research analyst Arun Sundaram wrote in a note on May 13. Walmart's inventories rose about 3 per cent in the quarter ended January 31, its first rise in nearly two years, Sundaram said. At warehouse club chain Costco, inventories were up nearly 10 per cent , while those of surf and skateboard apparel retailer Zumiez rose about 14 per cent in the three months to February. Target's inventories rose 7 per cent during the same period. While Monday's tariff reprieve is a potential boon for U.S. brands eager to stock up on summer merchandise, the current rush may create supply-chain bottlenecks, though likely less severe than during the pandemic years of 2021-2022, said Sundaram, who expects a rise in freight costs. Some manufacturers of Halloween decorations told Reuters on Wednesday that they would have to scramble to produce and ship hanging skeletons and costume props to the United States within the 90-day window. Gene Seroka, executive director of the Port of Los Angeles, said businesses may not be able to fully prepare for both summer and back-to-school in July, another big retail selling season. "Right now we're looking at the last orders that would go in for back-to-school, and maybe some lingering orders for summer fashion. So that's really tight," Seroka said. Stephen Lamar, who heads the American Apparel & Footwear Association, which counts Adidas America as a member, flagged a risk of congestion at ports if hundreds of companies rush to bring in goods now. "The tariff war has delayed back-to-school shipping by a month. But it's not like school districts can delay school by a month," Lamar said.
Time of India
15-05-2025
- Business
- Time of India
Retailers rush to save US summer shopping season
U.S. retailers including Walmart and several clothing brands are racing to secure China-made merchandise for the busy summer shopping season starting in late May after Washington and Beijing agreed to temporarily slash tariffs. The agreement on Monday to lower U.S. tariffs on shipments from China to 30 per cent from 145 per cent for the next three months prompted a restart in orders and shipments for sundresses, bathing suits, clogs and sunscreens from Chinese factories, according to logistics company Portless, which helps U.S. e-commerce brands import goods from China via air. "Once the tariff cut was announced, our clients said 'we are in go-go-go mode,'" said Izzy Rosenzweig, CEO of Portless, which counts swimwear brand Hapari, and bug repellent maker NatPat among its clients. "They said 'let's restart production and let's restart shipping.'" U.S. businesses largely rely on ocean shipping but that can take between 30 and 60 days for goods to reach the United States from China, depending on the destination and ship size, although orders for the summer can start in late winter or early spring to allow for the manufacturing of new designs, John Harmon, managing director of technology research at Coresight Research, said. U.S. retailers and apparel companies typically begin shipping merchandise from China at least two to three months before the summer season starts on Memorial Day, which this year falls on May 26. But after U.S. President Donald Trump hit Beijing with retaliatory and fentanyl tariffs totaling 145 per cent on April 9, several U.S. companies paused their orders. Container bookings from China to the U.S. fell nearly 50 per cent in the last week of April, according to data provided to brokerage TD Cowen by container tracking firm Vizion. This trend went into reverse on Monday, but Harmon said restarting supply chains after the April pause could take some time. "It has been super busy these two days," said Liu, a toy manufacturer from the export hub of Dongguan in Southern China, who declined to give her full name for privacy reasons. "We are booking containers and some of our goods are already on the way to Shenzhen port. In recent months there were fewer cargo buses on the road but today ... there is a traffic jam on the way to the port," said Liu, who serves customers including Walmart, the biggest single importer of container goods into the United States. Container-Costs Worries Despite the rush to deliver goods to the U.S., freight rates have not yet spiked. The spot rate to send a 40-foot (12 m) container from China to the U.S. West Coast rose 3 per cent week-on-week to USD 2,395 on Monday, data from freight booking and payments platform Freightos shows, indicating that businesses were not swamping shippers with bookings. This is half of the price in February, when many large players were rushing to stock up to defuse the expected tariff action by Trump. But companies like Bogg Bag are starting to worry that container costs are soon going to go through the roof. Kim Vaccarella, CEO of the tote-bag maker, sold at retailers including Target, said on Wednesday that she has drastically sped up manufacturing for her China-made totes to get as many as possible en route to New Jersey by August. She is sticking to a few popular items instead of many new products at once so that they can move fast. Retailers including Walmart, which reports earnings on Thursday, and rivals Costco and Target front-loaded orders at the start of the year, CFRA research analyst Arun Sundaram wrote in a note on May 13. Walmart's inventories rose about 3 per cent in the quarter ended January 31, its first rise in nearly two years, Sundaram said. At warehouse club chain Costco, inventories were up nearly 10 per cent , while those of surf and skateboard apparel retailer Zumiez rose about 14 per cent in the three months to February. Target's inventories rose 7 per cent during the same period. While Monday's tariff reprieve is a potential boon for U.S. brands eager to stock up on summer merchandise, the current rush may create supply-chain bottlenecks, though likely less severe than during the pandemic years of 2021-2022, said Sundaram, who expects a rise in freight costs. Some manufacturers of Halloween decorations told Reuters on Wednesday that they would have to scramble to produce and ship hanging skeletons and costume props to the United States within the 90-day window. Gene Seroka, executive director of the Port of Los Angeles, said businesses may not be able to fully prepare for both summer and back-to-school in July, another big retail selling season. "Right now we're looking at the last orders that would go in for back-to-school, and maybe some lingering orders for summer fashion. So that's really tight," Seroka said. Stephen Lamar, who heads the American Apparel & Footwear Association, which counts Adidas America as a member, flagged a risk of congestion at ports if hundreds of companies rush to bring in goods now. "The tariff war has delayed back-to-school shipping by a month. But it's not like school districts can delay school by a month," Lamar said.
