By Peter Bouwhuis
Let me put it plainly: BRICS is no longer just a catchy acronym someone cooked up at Goldman Sachs. It’s grown teeth—and it’s starting to bite.
If you’ve read my past columns, you’ll know I don’t jump at shadows. I’ve worked in this industry for over 43 years. I’ve seen superpowers rise, fall, and bluff. I’ve watched global shipping lanes shift with every war, pandemic, and trade pact. And this latest move by BRICS? It’s one of the most significant shifts in global logistics and trade we’ve seen in decades—but it’s not the apocalypse some are making it out to be.
BRICS 2.0 — It’s Real, and It’s Resourceful
In 2025, BRICS isn’t just Brazil, Russia, India, China, and South Africa anymore. It now includes Egypt, Ethiopia, Iran, the UAE, and Indonesia. Add to that nine “partner” countries—Nigeria, Kazakhstan, Cuba, Belarus, and others—and suddenly you’ve got a coalition that controls:
- 40% of the world’s oil
- 36% of global gas
- 72% of rare earth minerals
- And over half of the world’s population
These aren’t side notes on the trade ledger. These are core drivers of our supply chain infrastructure. Everything from the components in wind turbines to the diesel in your generator shipments depends on access to these resources.
And for the logistics industry, that spells disruption—but also opportunity.
Trump’s Tariff Flare-up — Familiar Playbook, Different Field
And right on cue, here comes Trump with his tariff threats. A 100% hit if BRICS dares create a dollar alternative. Another 10% for “anti-American” policies. The same old “America First” rhetoric, but this time aimed squarely at a much more organized and resource-rich opponent.
Now look, I’ve written before about Trump’s trade playbook. We saw this in his first term with China—bluster, tariffs, retaliation, and a hell of a lot of paperwork for the rest of us in the logistics world. The result? More uncertainty, higher freight costs, delayed projects, and clients asking why we didn’t see it coming.
This round won’t be any different.
- Global trade routes will adjust
- Cargo insurance premiums will rise
- Pricing models will get shakier
- And multinational forwarders will need new routing strategies, fast.
The tariffs may sound like a punishment for BRICS, but it’s the global freight sector that will bear the weight first. Again.
De-Dollarization Isn’t Just a Political Buzzword Anymore
One of the core initiatives driving BRICS unity is de-dollarization. That’s no longer theory—it’s practice.
China and Russia are already trading in yuan and rubles. BRICS nations are working on BRICS Pay, and China’s CIPS now links 4,900 banks in 150+ countries. That changes how we bill, insure, and finance cargo.
If you’re a freight forwarder and you’re not thinking about how to settle in local currencies, you’re behind. The era of clean, dollar-dominated international trade finance is ending—not overnight, but inevitably.
And while the dollar still rules in FX markets, the cracks are widening. Logistics providers need to hedge differently, quote smarter, and build currency risk into their planning—especially in the project cargo space, where payment terms span months or even years.
But BRICS Isn’t Bulletproof Either
Let’s not crown BRICS as the new trade king just yet. Internally, it’s a complex group.
Take India and China—strategic rivals, not besties. Their border tensions, opposing views on expansion, and competition for leadership in the Global South create constant friction.
And let’s be honest, aligning democratic Brazil with authoritarian Iran under one economic vision? That’s a stretch.
In the logistics space, this plays out in fragmented customs processes, variable infrastructure quality, and unpredictable regulatory policies. A so-called BRICS trade corridor from St. Petersburg to Jakarta might look sexy on paper, but we know the real challenges happen at borders, terminals, and local ministries.
As I’ve written before, infrastructure plans are only as good as the bureaucrats who implement them.
What This Means for Us in Logistics
We’re not in a Cold War—we’re in a cold trade war. And logistics is right in the crossfire.
Here’s what I’d advise, based on hard-earned experience:
- Start treating BRICS lanes as strategic priorities. These aren’t fringe markets anymore—they’re becoming primary trade lanes. Build partner networks accordingly.
- Follow the money—and the currency. Your finance and operations teams must understand CIPS, local currency trends, and payment risk in places like Ethiopia and Kazakhstan. This isn’t optional.
- Expect decoupling to speed up. Western manufacturers will increasingly shift supply chains away from BRICS nations—or double down on them. Either way, volume will move, and you’ll need to move with it.
- Plan for compliance chaos. If Trump follows through on his tariff threats, customs classification and origin rules will become battlefield terrain. Keep your documentation airtight.
Final Word: BRICS Isn’t the Problem—Complacency Is
Let me be clear: BRICS isn’t going away. But neither is the West. This isn’t about one side winning. It’s about who adapts faster.
And in logistics? Adaptation is our bread and butter.
So while politicians throw around threats and economists draw curves, we’re the ones out there making it happen—tracking shipments across volatile borders, re-routing vessels around sanctions, and finding creative solutions when the rules change mid-project.
That’s what we do. That’s what we’ve always done.
Let the rest argue over currency wars. I’ll be over here watching the next oversized module clear Indian customs—with or without a dollar invoice.
