As U.S. importers navigate the unpredictable landscape of tariffs imposed during the Trump administration, Bloomberg reports that a scramble has emerged for space in customs bonded warehouses—specialized facilities that allow companies to store goods for up to five years without immediately paying duties. These warehouses, a fixture of American trade since the 19th century, have become a financial lifeline for businesses seeking to keep products close to customers while deferring the cost of tariffs until merchandise is actually sold.
The renewed interest in bonded warehouses is a direct response to the volatility of U.S. trade policy, particularly the steep tariffs targeting dozens of countries and the fluctuating levies on Chinese imports. The uncertainty has made these federally licensed facilities, typically located near major coastal ports, more attractive than ever. Importers are eager to take advantage of any sudden tariff reprieve, ensuring their goods are not stranded at sea during critical policy shifts. Conversely, if the imposed duties persist, the warehouses offer a way to gradually release inventory into the market, spreading out the financial burden and helping companies weather potential dips in consumer demand as higher prices take hold.
“Tariffs have become a moving target, and bonded warehouses give brands more control in a market that feels a little chaotic,” John Shea, founder and chief executive officer of Momentum Commerce, told Bloomberg. “It’s less about beating the system and more about buying time to see where policy, demand and margin pressure settle.”
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The cost of bonded warehouse space has always been higher than standard storage due to regulatory requirements and the need for customs clearance both in and out. But the current surge in demand is pushing prices even higher, reflecting the urgency among importers to avoid a one-time tariff hit. For Flexe, a Seattle-based startup that connects companies with short-term warehouse space, inquiries for bonded storage have jumped by sixfold this year. “We’re just seeing extraordinary demand for it,” Flexe co-founder Karl Siebrecht told Bloomberg, noting that bonded space now commands a premium of up to 60% over typical warehouse rates.
One importer, who sells more than $100 million worth of artificial Christmas trees annually, used Flexe’s platform to secure bonded space, allowing them to delay tariff payments until closer to the holiday season. Flexe’s network now includes about 140 customs-bonded facilities nationwide, totaling 21 million square feet, much of which is being snapped up quickly, Siebrecht said.
Bonded warehouses have traditionally occupied a small, niche segment of the industrial real estate market. But the recent surge in interest is likely to prompt more warehouse operators to seek federal certification—a process that can take up to a year and requires significant investment in security and compliance. “There’s going to be a shortage in the short term, but there’s going to be a lot more of this space coming in the future,” Brandon Young, CEO of Seller Systems, told Bloomberg. Young’s company, which educates online marketplace sellers, has shifted its curriculum to include strategies for navigating the Trump tariffs.
The rush for bonded space has been dramatic in places like Bayonne, New Jersey, where Accem Warehouse leased all 220,000 square feet of its bonded facility almost immediately after the tariffs were announced, before ships even reached port. “Our phones were ringing off the wall like crazy,” said company president Jerry Mecca. “Normally the demand is not big for bonded warehouse space.” Some of those pre-leases fell through when a 90-day tariff reprieve was announced, but with tariffs on Chinese goods still in effect, Mecca’s team is reaching out to Chinese clients and expects the space to fill again soon.
Ports such as Los Angeles are also bracing for a surge in demand, given that about 40% of goods passing through the city and Long Beach originate from China, according to port officials. For logistics firms like Afar Logistics in Tacoma, Washington, the spike in interest has been a welcome change after a post-pandemic slowdown. CEO Dawit Habte told Bloomberg it took about a year to complete the bonding process, which included security upgrades and inspections. “Perfect timing for us,” Habte said. “That’s going to flood the whole market basically, and they’re going to run out of space because a lot of customers have a huge amount of cargo.” Habte estimates that a single client could fill his 37,000-square-foot facility.
Customs brokers and freight forwarders are also feeling the pressure. Robert Krieger, president of Krieger Worldwide in Long Beach, California, described a surge in calls from importers seeking bonded space. One client, importing footwear from China, is holding out for a potential tariff reduction, while another, with 40 containers of apparel from South Asia, is weighing the cost of bonded storage against the possibility of a tariff reprieve. “He’d be smart to do his original intent, just clear customs, because the cost of bonded space has gone up,” Krieger told Bloomberg.
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