34% Cost Reduction
China+1 Air Freight Strategy
How a US electronics brand navigated tariff uncertainty by diversifying production to Vietnam — and cut air freight costs by 34% in the process.
The Challenge
A mid-size US consumer electronics company was shipping 2,000+ kg of finished goods weekly from Shenzhen to Los Angeles via air freight. With Section 301 tariffs adding 25% to their landed cost and the February 2026 de minimis elimination requiring formal customs entries for all shipments, their existing supply chain was unsustainable.
They had already begun manufacturing in Ho Chi Minh City as part of a China+1 strategy, but their logistics partner couldn't match the transit times or rates they had from Shenzhen. Air freight quotes from Vietnam were 40% higher than China, and they had no customs expertise for Vietnamese export documentation.
Our Solution
Suaid Global designed a dual-origin air freight program. We negotiated dedicated allotments on Vietnam Airlines Cargo and Korean Air Cargo from Ho Chi Minh City to LAX, achieving rates competitive with the China lane. For the transition period, we ran parallel operations from both Shenzhen and HCMC.
Our customs team handled the complete tariff classification analysis — identifying that Vietnamese-origin goods avoided Section 301 tariffs entirely, saving 25% in duties. We also set up formal customs entry processes to replace their previous de minimis shipments, ensuring zero disruption when the Section 321 exemption was eliminated.
The Results
Within 90 days, 80% of their air freight volume shifted to Vietnam. Total landed cost dropped 34% — combining lower freight rates, zero Section 301 tariffs, and competitive Vietnamese manufacturing costs. Transit time from HCMC to LAX averaged 3 days, matching their Shenzhen performance.
The company now ships from both origins based on product line, with Suaid Global managing unified tracking and customs clearance across both lanes.
Suaid didn't just move our freight — they redesigned our entire supply chain for the post-tariff world. The 34% savings went straight to our bottom line.
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