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