BlackRock Inc., the world's largest asset manager, has partnered with San Francisco-based digital logistics startup Flexport Inc. to expand financing options for businesses facing rising tariffs and cash flow pressures in international trade.

According to Stuart Leung, Flexport's chief financial officer, the $250 million investment from funds and accounts managed by BlackRock will help Flexport double its lending capacity. Since its 2017 launch, Flexport Capital's financial services arm has disbursed over $2 billion.

Flexport currently ranks 33rd on the Transport Topics Top 100 list of the largest logistics companies in North America, 43rd in ocean freight, and 31st in air freight forwarding.

[Caption]. Photo: Flexport via YouTube

[Caption]. Photo: Flexport via YouTube

Rising global trade costs are driving demand for financing from Flexport's clients, including term loans, tariff financing, and asset-based credit to free up working capital for product cycles – the period from factory order to consumer delivery, which can take up to six months.

"Policy changes, including US tariff increases, have had a profound impact on global trade and put significant pressure on businesses," Leung said. "They create uncertainty, forcing companies to restructure their supply chains and supplier networks, tying up working capital needed for operations and growth."

He noted that demand for Flexport Capital's services is soaring, and the four-year agreement with BlackRock will help meet this need. The financing package will cover various stages of the supply chain: from purchase orders and inventory receipt to shipping, warehousing, and final delivery.

Flexport is currently backed by Bloomberg Beta, the venture capital arm of Bloomberg LP.

Gia Han (According to Transport Topics)