Swing away
I would be against shortening the trailer because of the handling and backing issues it would create. As long as it tows fine now I would want to keep the same length. The other issue that shortening the trailer will create is the need to back the towing vehicle much further down the ramp and potentially into the water to launch the boat.
I would do this:
Amazon.com: Fulton HDPB330101 Fold-Away Bolt-On Hinge Kit for 3" x 3" Trailer Beam - up to 5,000 lb.GTW: Fulton: Automotive
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