Rising hostilities involving Iran and their spillover into neighbouring countries and areas hosting European military bases are having a serious impact on international transport flows.
Recent events have moved beyond warnings and constrained transit — to near total operational paralysis and systemic disruption across shipping, logistics, energy markets, and global supply chains.
ESC also recommends that shippers take the following operational actions:
Recommendations for Shippers:
1. Map and Locate cargo and equipment
- Perform a real‑time audit of shipments in transit, particularly those linked to Middle‑East gateways or reliant on Hormuz‑linked corridors.
2. Activate Dynamic Visibility and Scenario Planning
- Adopt enhanced tracking tools with war‑risk and geopolitical scenario modules.
- Reassess routing and modal shift options daily as conditions evolve.
3. Rebalance Inventory and Warehousing
- Build buffer stocks in strategic hubs (e.g., Europe, Southeast Asia) where demand exposure is highest.
- Evaluate vendor‑managed inventory (VMI) and near‑shoring alternatives where feasible.
4. Re‑evaluate Insurance and Contractual Risk
- Engage insurers to revise war‑risk and delayed‑shipment coverage, including specific clauses for prolonged chokepoint disruptions.
- Consider financial hedging against energy, freight and currency volatility linked to the conflict.
5. Model Systemic Impact
- Treat this not as a regional disturbance but as a global systemic shock with implications across energy, manufacturing, and goods industries.
