Combined forces of geopolitics, decarbonisation, digitalisation and automation are set to radically transform global supply chains over the next five years.
That was one of the key messages from supply chain leaders at the Lloyd’s List Outlook Singapore Forum last month.
“The things that are immediately shaping boardrooms, around decisions on resiliency are geopolitics,” said Alan Beacham, managing director at Toll Group, one of Asia’s largest forwarding and logistics firms.
“I think we’ll see more changes in the next five years in supply chain reconfiguration than we’ve seen perhaps in the last 20, as companies really start to grapple with all of those drivers,” he said.
The recent geopolitical tensions in the Middle East, particularly between Iran and Israel, pose immediate risks to shipping routes, especially the Strait of Hormuz, which is critical for oil and gas shipments, attendees were told.
If this route is blocked, logistics firms may need to consider alternative pathways, including overland routes into markets.
Han Ning from Drewry Consulting pointed out that the upcoming US election could bring further uncertainty to shipping, especially if trade tariffs introduced by the Trump administration are continued or expanded. This could force logistics providers to diversify their trading routes extensively to avoid these tariffs.
