Flexport takes fulfillment network international with Canada, UK expansion 

“Our customers built demand in Canada and the UK long before they had a good way to serve it,” Flexport founder and CEO Ryan Petersen said in a statement. “Flexport customers using freight through fulfillment in the U.S. have seen tangible efficiencies and cost savings with end-to-end logistics.”

Flexport targets Toronto, Manchester

The Canadian fulfillment center is in Mississauga, near Toronto Pearson International Airport.

The facility has Health Canada certifications for medical products, supplements and consumer goods. Inbound receiving began in July, with the first outbound customer orders scheduled to ship in September.

In the U.K., Flexport is operating through two partner-run fulfillment facilities in Manchester. Both use AutoStore automated storage and retrieval systems, which employ robots traveling across grids of stacked bins to bring inventory to workers.

Flexport said the technology allows roughly the same volume of goods to be stored in one-quarter of the floor space required by traditional warehouse configurations.

Flexport also plans to add fulfillment operations in continental Europe in 2027, where the company already maintains freight and customs operations. The company said its logistics network serves more than 13,000 companies and includes air, ocean, truck and rail transportation, customs and fulfillment services.

Tariffs, customs enforcement reshape North American supply chains

Flexport’s expansion comes as importers face a North American trade environment increasingly defined not only by tariffs but by heightened scrutiny of importers, customs brokers, transshipment and country-of-origin rules.

During Flexport’s Aug. 19 “Tariff Trends 2026” webinar, Customs Director Marcus Eeman and Trade Advisory Director Jenn Park discussed changes involving Section 338 and Section 232 tariffs, importer-of-record requirements, transshipment enforcement and refunds of IEEPA tariffs.

Canada was a particular focus of the webinar.

At the time, the Trump administration had temporarily delayed planned Section 338 tariffs of 50% on roughly 5% of Canadian products amid negotiations between Washington and Ottawa. Targeted products included food and agricultural goods, softwood lumber, dairy, outerwear, hockey equipment and alcohol.

Eeman said the proposed duties as a potentially credible negotiating threat intended to pressure Canada into concessions on longstanding trade disputes. He said the tariff threat appeared designed to “create a sense of urgency” around negotiations involving issues such as Canadian dairy quotas and U.S. Section 232 metals tariffs.

The Peace Bridge connects Buffalo, New York with Fort Erie, Ontario and handles more than a million truck crossings a year. The border crossing is the primary freight corridor between the Toronto area and the U.S. Northeast.

As of Wednesday, the Buffalo trucking market is currently experiencing difficult capacity conditions for shippers, with an outbound tender rejection index (STRI.BUF) of 19.28%, significantly higher than the national average of 14.19%, according to SONAR data. 

Buffalo also shows signs of tightening capacity, as indicated by a recent positive shift in the SONAR Weighted Rejection Index (SWRI), suggesting conditions may continue to worsen for shippers.

Customs enforcement becoming the bigger concern

Beyond tariff rates themselves, Eeman said businesses that the next phase of trade uncertainty could increasingly revolve around customs compliance and determining where products actually originate.

Flexport said U.S. Customs and Border Protection was preparing to scrutinize importer-of-record registrations, including businesses using P.O. boxes or addresses that are not their actual principal places of business. Missing contact information could also result in importer records being deactivated or voided.

Customs brokers working with foreign importers also face additional due-diligence expectations, including reviewing ownership structures, affiliated companies, U.S. assets and the importer’s ability to pay duties. Flexport said those requirements could put additional compliance pressure on both brokers and foreign companies selling into the U.S.

The changes are particularly relevant for North American supply chains because companies frequently move components and finished goods among Mexico, Canada and the United States before products reach consumers.

Eeman said policymakers were considering whether the longstanding “substantial transformation” standard should be modified, potentially changing how customs officials determine where internationally sourced products originate.

“Maybe the chaos of, like, the last few years is mostly focused around tariffs,” Eeman said. “I think the chaos in the months and years coming ahead is probably going to be more around who gets to import, when they get to import, and how they know what those countries of origin are.”

Why it matters: Flexport’s move into Canadian and U.K. fulfillment gives shippers another way to position inventory closer to consumers at a time when tariffs, origin rules and tougher customs enforcement are making cross-border supply chains increasingly costly and complex.