Tariffs, Shipping and Materials with Charles Bowden

The vast majority of materials that you use to build a house are manufactured overseas and shipped to the US from around the world. That reliance on global shipping and distribution means materials can be subject to price fluctuations brought on by a wide variety of external factors. To discuss how the cost of your house is affected by the cost of transporting materials, our guest today is Charles Bowden of MSI, one of the world’s largest movers of building materials. Charles takes the time to break down trading routes from Asia, and how the closure of certain routes has forced shippers to raise the costs of getting their products to their destination, and how that affects the price the end user pays. Chapters 00:00 Introduction to the Episode and Guest 01:00 Guest Background: Charles Bowden and MSI 02:12 Overview of Shipping Logistics in Construction 03:17 What Are Shipping Logistics and How Do They Work? 05:03 Understanding Freight Class and Shipping Costs 06:29 Tariffs and Their Impact on Import Costs 07:17 What Are Tariffs and How Do They Affect Shipping? 09:09 Container Costs and COVID-19 Impact 10:53 Section 232 and 301 Tariffs Explained 12:47 Most Affected Construction Materials by Tariffs 15:33 Shipping Delays and Global Disruptions 19:25 Nearshoring and Its Growing Role in Supply Chains 21:04 What Is Landed Cost and Why Is It Important? 23:05 Budgeting and Price Escalation in Construction 26:49 Advice for Managing Material Costs and Tariffs 30:37 Future Outlook on Tariffs and Shipping Challenges 31:56 Closing Remarks and Key Takeaways