Supply chain leaders are being urged to take action as the Israel-Iran conflict continues to disrupt key shipping routes and push up costs. According to a new report from Gartner, there are three big steps supply chain leaders need to take right now to keep their operations on track.
The first is to deal with growing transportation delays across the Middle East. “As the conflict between Israel and Iran oscillates, CSCOs must leverage the resilience they have built in recent years, recognizing that the global significance of this region makes it nearly impossible to avoid adverse impacts, even if only indirect,” said David Gonzalez, Vice President Analyst in Gartner’s Supply Chain practice.
Shipping traffic in the Red Sea and through the Suez Canal is still far below normal, with many carriers rerouting around the region. Ports like Jebel Ali and Haifa have already faced service interruptions, and demand for rail freight between Asia and Europe is rising fast, creating congestion and delays there too. Gartner says companies should look at alternative ports, work closely with shipping partners, and explore rail or multimodal options to stay flexible.
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