A study on global supply chain disruption and its impact on logistics cost

Abstract

Global supply chains have faced record disruptions in the last three years driven mostly by the COVID-19 pandemic and continued geopolitical tensions like the Russia-Ukraine war, Israel-Hamas conflict, and instability in the Red Sea area. The impacts have compelled the world's largest shipping companies and logistics operators to reroute established trade routes, leading to huge cost implications throughout the logistics industry. This project examines the effect of rerouting on logistics expenditures, with emphasis on prime trade lanes impacted by these disruptions.