Flexport Doubles Supply-Chain Financing Pool to $250 Million with BlackRock Partnership

San Francisco – Flexport, the technology-driven freight forwarder, has announced a significant expansion of its supply-chain financing capabilities, doubling its pool to $250 million through a partnership with funds and accounts managed by BlackRock. The collaboration aims to provide crucial working capital to U.S. retailers and manufacturers grappling with rising costs, particularly those driven by tariffs. As stated by The Wall Street Journal on social media, > "Flexport, the tech-focused freight forwarder, is joining with BlackRock to double its supply-chain financing pool to $250 million as tariffs raise costs for U.S. retailers and manufacturers."

This expanded financing, managed by Flexport Capital, Flexport's financial services arm, will offer flexible working capital solutions for inventory, logistics, and tariff financing. Flexport Chief Financial Officer Stuart Leung highlighted the necessity of such capital, noting, "Global trade runs on cash flow, and too many great businesses fall behind simply because they can’t fund the gap between when they buy inventory and when they sell it." The partnership is designed to embed capital access directly into the supply chain lifecycle, streamlining access for businesses.

Flexport Capital has been actively providing financing since its launch in 2017, having already disbursed over $2 billion to its customers. The company has achieved an impressive annualized growth rate of 71% over the past five years in this segment. This new infusion from BlackRock-managed funds significantly enhances Flexport's capacity to support its 13,000-plus client base, enabling them to navigate cash flow challenges without tying up equity.

The initiative comes as U.S. businesses face increasing pressure from tariffs, which have led to heightened import costs and supply chain disruptions. Tariffs impact forecast accuracy for companies and can significantly raise prices for consumer goods, automotive parts, and raw materials. This environment necessitates agile financial solutions, making Flexport’s integrated logistics and finance platform increasingly vital for businesses seeking to maintain competitiveness and manage liquidity.

BlackRock's involvement underscores a growing trend of major financial institutions investing in logistics-driven fintech solutions. This strategic alliance not only provides much-needed capital but also leverages Flexport's real-time data on supply chain operations, potentially mitigating lending risks. The partnership positions Flexport to further solidify its role as a comprehensive solution provider in global trade, addressing both the physical movement of goods and the financial flows that underpin it.