**London**: Industry leaders convened to address how geopolitical disruptions affect global supply chains. The discussion focused on implementing multimodal transport, exploring alternative trade routes, and fostering collaboration to enhance resilience, underscoring the need for proactive strategies in navigating these complex challenges.
Geopolitical disruptions, which range from trade wars and economic sanctions to regulatory upheavals, are impacting global supply chains in profound ways. This evolving situation has compelled businesses across various industries to reassess their strategies for operational continuity and resilience. Recently, industry leaders from the air cargo, logistics, and manufacturing sectors convened to discuss these challenges and propose solutions, placing a particular emphasis on multimodal transport, alternative trade routes, and collaborative partnerships.
The current geopolitical landscape has showcased a new era of complexity in international trade. Pressing issues such as the ongoing US-China trade tensions, the Russia-Ukraine conflict, and the regulatory shifts following Brexit have exposed critical vulnerabilities within supply chains. Samir J Shah, Chief Mentor and Director at JBS Academy, articulated the pervasive nature of these geopolitical risks. Speaking to Air Cargo Week, Shah noted, “Geopolitical risks are no longer isolated events. They have become systemic, impacting trade flows, regulatory frameworks, and market access. Businesses need to pivot from reactive approaches to proactive strategies that anticipate and mitigate these disruptions.”
As the panel engaged in discussions, one of the key strategies identified was the integration of multimodal transport solutions. This approach, which involves combining air, ocean, and land transport modes, can enhance flexibility and lessen dependency on singular routes or modes. Sam Katgara, Partner at Jeena & Company, underscored the importance of implementing such strategies in today’s unpredictable environment. He stated, “Multimodal transport is critical for navigating disruptions. For instance, during the pandemic and subsequent port closures, the agility offered by combining air and road transport helped businesses maintain supply chain continuity. Companies must now institutionalise these practices as part of their long-term logistics strategy.”
In addition to diversifying transport modalities, the conversation also highlighted the necessity of exploring alternative trade routes. With established paths becoming increasingly unreliable, companies are now considering corridors such as the India-Middle East-Europe Economic Corridor (IMEC) and forming Trans-Pacific partnerships. Ramesh Mamidala, Head of Cargo at Air India, elaborated on the crucial role of air cargo in these transitions, noting, “Air cargo has proven its value in enabling faster adaptation to new trade routes. The agility of air freight allows companies to quickly establish alternative supply lines, ensuring the timely movement of critical goods. As carriers, we are investing in infrastructure and partnerships to support this adaptability.”
Collaboration among stakeholders, including manufacturers, logistics providers, and policymakers, emerged as a key element for building resilience against geopolitical shocks. Dr. Sanjeevv Khanna, COO of Patanjali, emphasised that collective action is essential, stating, “Supply chain resilience is not a siloed effort. It requires collaboration at every level—governments must align regulations, and businesses must share data and resources. Only then can we create a system that is robust enough to withstand geopolitical shocks.”
Technology’s role in enhancing supply chain visibility and decision-making also featured prominently in the discussions. Innovations such as advanced analytics, real-time tracking, and predictive tools are enabling companies to anticipate disruptions more effectively. Sreenivas Rao Nandigam, Global Head of Supply Chain at Sun Pharma, remarked, “Technology is a game-changer. With predictive analytics, we can foresee potential risks—whether it’s a port closure or a regulatory change—and adapt our operations in real time. This level of visibility is critical for mitigating disruptions and maintaining customer trust.”
Furthermore, the intersection of geopolitical risk management and sustainability was another focal point of the dialogue. As businesses adapt to ongoing disruptions, there is a growing opportunity to incorporate sustainable logistics practices that not only reduce environmental impact but also bolster resilience. Umang S Bhatnagar, Senior Vice President of Strategic Sourcing, Supply Chain & IT at SRF Limited, highlighted the dual rewards, stating, “Resilience and sustainability go hand in hand. By investing in energy-efficient transport modes and reducing reliance on carbon-intensive routes, businesses can build supply chains that are not only more robust but also aligned with global sustainability goals.”
The overarching consensus from the industry discussion was that businesses must transition from a reactive response to a more proactive and strategic stance in managing geopolitical risks. This encompasses investments in multimodal transport, enhancing technology for better visibility, diversifying trade routes, and fostering collaboration throughout the supply chain. As Shah concluded, “Geopolitical risks are here to stay. The question is not whether disruptions will occur but how prepared we are to navigate them. Resilience is no longer a competitive advantage—it’s a necessity.”
Source: Noah Wire Services
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