A shifting landscape for global supply chains
Global trade is entering a period of sustained uncertainty. Regulatory changes across the EU are reshaping compliance frameworks, while escalating tensions in the Middle East are disrupting the physical movement of goods.
Together, these forces are exposing structural weaknesses in global supply chains and forcing businesses to rethink how they operate.
The Strait of Hormuz: a critical pressure point
One of the most significant areas of disruption is the Strait of Hormuz, a vital corridor for global energy and commercial shipping.
Recent developments have led to a sharp increase in vessel congestion, with over 3,200 ships impacted. Significant volumes of oil and goods are effectively being held in transit.
The implications are immediate and far-reaching:
- Increased uncertainty
- Extended lead times
- Rising operational costs
Rising costs and extended transit times at sea
Shipping routes are being actively adjusted to avoid high-risk areas such as the Red Sea. While necessary, these diversions are adding between 10 and 14 days to transit times.
Fuel consumption has increased significantly, in some cases reaching up to $1 million per voyage. At the same time, war risk surcharges and insurance premiums continue to rise, placing further pressure on freight rates.
Air cargo disruption and pricing volatility
Air freight is facing parallel challenges. Ongoing airspace restrictions and rerouting are reducing available capacity, particularly on Asia to Europe routes.
According to The Loadstar, this is resulting in:
- Growing backlogs
- Longer transit times
- Highly volatile pricing
In many cases, airlines are no longer able to offer fixed rates, instead pricing shipments based on daily conditions. This makes forward planning increasingly difficult for businesses.
Downstream impact across industries
The impact of these disruptions is already being felt across multiple sectors.
Retailers such as Next plc have indicated that prices could rise by 4 percent to 10 percent if disruption continues.
More broadly, industries including pharmaceuticals, electronics, and consumer goods are experiencing:
- Increased transport costs
- Delays in raw material supply
- Greater operational uncertainty
Insights from WIRED also highlight the growing operational and legal complexity in high-risk regions, including challenges affecting shipping crews and vessel operations.
A shift from efficiency to resilience
What we are witnessing is not a temporary disruption. It represents a structural shift in how global trade operates.
Historically, supply chains have been optimised for efficiency, with predictable routes, stable costs, and tightly managed timelines.
That model is now under pressure.
Businesses must move beyond cost optimisation and focus on resilience. This means:
- Building flexibility into routing strategies
- Planning for variability rather than stability
- Strengthening compliance processes
- Improving visibility across operations
How NG Terminal supports in a volatile market
At NG Terminal, we recognise that today’s logistics challenges require a more adaptable approach.
Flexible multimodal routing
We provide integrated air, sea, and road solutions that allow clients to adjust routes quickly when disruption occurs, helping to reduce delays and manage costs.
Bonded warehousing and duty management
Our bonded storage solutions allow goods to be held without immediate duty payment, supporting cash flow during extended transit periods or delayed distribution.
Compliance-led customs processes
We ensure shipments move efficiently through regulatory requirements, reducing the risk of additional delays in an already disrupted environment.
Operational visibility and control
Real-time information and structured process management enable faster, more informed decision-making.
Looking ahead
Global trade routes remain under pressure, and current geopolitical conditions show limited signs of short-term stabilisation.
For businesses, the focus is shifting. The priority is no longer simply reducing cost, but building supply chains that can withstand disruption and continue to operate effectively.
Those that invest in flexibility, maintain strong compliance frameworks, and take a proactive approach to logistics planning will be better positioned to manage ongoing volatility.
Conclusion
Global trade is not just disrupted. It is becoming structurally more unpredictable.
In this environment, adaptability is essential.
NG Terminal supports businesses in building more resilient, responsive supply chains, providing the expertise and infrastructure required to operate with confidence in a complex global market.
