Jan 15, 2025
The increasing frequency and impact of geopolitical disruptions—ranging from trade wars and economic sanctions to regulatory upheavals—have placed global supply chains under unprecedented strain. Businesses across industries are now compelled to reassess their strategies to ensure resilience and maintain operational continuity in a world marked by uncertainty.
A new era of complexity
Geopolitical events have redefined the landscape of international trade. Factors such as US-China trade tensions, the Russia-Ukraine conflict, and post-Brexit regulatory shifts have underscored vulnerabilities in global supply chains.
Samir J Shah, Chief Mentor and Director at JBS Academy, highlighted the core issues as,
“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.”
Adapting through multimodal transport
One of the key strategies identified was the integration of multimodal transport solutions. By combining air, ocean, and land transport modes, businesses can enhance flexibility and reduce dependency on any single route or modality.
Speaking on the issue, Sam Katgara, Partner at Jeena & Company, noted the growing importance of such strategies: “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.”
Trade route diversification was another area of focus. With certain traditional routes becoming increasingly volatile, companies are exploring alternative corridors, including the India-Middle East-Europe Economic Corridor (IMEC) and the Trans-Pacific partnerships.
Ramesh Mamidala, Head of Cargo at Air India, elaborated on the role of air cargo in this shift:
“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 and technology
Collaboration across supply chain stakeholders—manufacturers, logistics providers, and policymakers—was identified as a cornerstone of resilience.
Dr. Sanjeevv Khanna, COO of Patanjali, stressed the need for collective action by 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.”
The use of technology to enhance supply chain visibility and decision-making also featured prominently in the discussion. Advanced analytics, real-time tracking, and predictive tools are enabling businesses to anticipate disruptions and respond effectively.
Sreenivas Rao Nandigam, Global Head of Supply Chain at Sun Pharma, explained:
“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.”
Sustainability and resilience
The panel also addressed the intersection of geopolitical risk management and sustainability. As companies adapt to disruptions, there is an opportunity to integrate green logistics practices that reduce environmental impact while enhancing resilience.
Umang S Bhatnagar, Senior Vice President of Strategic Sourcing, Supply Chain & IT at SRF Limited, highlighted the dual benefits: “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.”
Building a resilient future
The overarching message from the discussion was clear: businesses must evolve from a reactive stance to a proactive and strategic approach to managing geopolitical risks. This includes investing in multimodal transport, leveraging technology for visibility, diversifying trade routes, and fostering collaboration across the supply chain.
“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” Shah stated.
The post Addressing the complexities of trade disruptions with strategic adaptation appeared first on Air Cargo Week.
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Author: Ajinkya Gurav