V3I5P35

A Study on Geopolitical Risks and Their Influence on Global Freight Forwarding Business and Operations

Venkatachalapathy R.^1*, Dr. R. Priyadharshini²

Abstract

Recent global geopolitical developments pose numerous challenges for the global freight forwarding and logistics profession. Here we will look at how various geopolitical risks such as conflicts, trade war, sanctions, maritime security threats, and climate impacts are currently affecting this industry in terms of global trade and supply chain and routing of ships, shipping costs, changing shipping routes, and potential long-term impacts on supply chains. Five major disruptions examined are: Iran/Israel Conflict; Red Sea Crisis; Russia/Ukraine War; US/China Trade War; and Panama Canal Drought. All these disruptions have resulted in diversions of shipping routes, fluctuations in the price of freight rates, delays in shipments and uncertainty in booking, as well as increases in insurance and operational costs. The findings of the study support the importance of having a diverse supply chain, good risk management practices, multi-modal logistics, and increased use of digital monitoring systems, to increase resilience and maintain continuity of operations for global freight forwarding professionals.

Keywords:

Geopolitical Risks, Freight Forwarding, Global Logistics, Supply Chain Disruption, Maritime Security, Trade War, Route Diversification, Operational Resilience’s