The Strategic Implications of Red Sea: Disruptions on Global Supply Chains

The Red Sea shipping crisis, sparked by Houthi attacks, has exposed deep vulnerabilities in global supply chains. From skyrocketing freight costs to halted operations in key sectors like automotive, fashion, and energy, industries worldwide are struggling to adapt. The disruption of this vital maritime corridor has not only slowed trade but also revealed the fragility of just-in-time global logistics.

In this commentary, Shamshil Arefin discusses how companies can shift towards more resilient strategies: nearshoring, multimodal transport, and real-time risk monitoring. The era of low-cost, high-speed trade is giving way to a model that prioritizes flexibility, regionalization, and shock-resilience. The commentary outlines how businesses can adapt to this new reality and ensure long-term operational continuity.

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