Restructuring supply chains to cause volatility in 2024

The Q3/Q4 2024 report highlights a mix of stability and volatility in global supply chains as they undergo restructuring. Similar to the year’s first half, geopolitical forces, shipping volatility, and supply chain stability are key trends being observed.

The report anticipates ongoing volatility through the remainder of 2024 but suggests a trend toward greater stability compared to the fluctuations of the past four years.



Unlike previous shifts driven mainly by economic reasons, current supply chain changes are significantly influenced by geopolitical interests, particularly those of the US-led West, China, and Russia. Commodity prices remain high despite weaker demand, creating a puzzling disconnect between supply, demand, and prices.



Shipping prices have also surged, driven by the Red Sea crisis and the rerouting of shipping around the Cape of Good Hope. Port congestion in Asia exacerbates the issue, tying up ship capacity and increasing demand.

Several emerging economies are poised to benefit from the global supply chain restructuring. India, Malaysia, the Philippines, Thailand, Vietnam, and Indonesia are highlighted as potential winners, each offering unique advantages and challenges that will determine the types of industries they attract.





The report underscores the significant geopolitical shift marked by the deepening relationship between Russia and China, posing a challenge to U.S. hegemony and evidenced by increased trade between the two nations.