Supply‑chain stress hits a three‑year high
A GEP survey shows global supply‑chain pressures at a three‑year peak as the Middle East war raises transport costs and triggers stockpiling across Asia. The report highlights sharper increases in freight and logistics strain for the region. (x.com)
Global supply-chain pressure jumped to its highest level since January 2023 in March, as manufacturers paid more to move goods and built bigger buffers against disruption. (prnewswire.com) The GEP Global Supply Chain Volatility Index rose to 0.57 in March from 0.09 in February, according to a report released April 10 by GEP and S&P Global. The index is based on monthly Purchasing Managers' Index surveys covering about 27,000 companies in more than 40 countries. (prnewswire.com; gep.com) A reading above zero signals rising strain across demand, shortages, transport, inventories and backlogs, while a reading below zero points to spare capacity in supply chains. March also brought the highest reports of stockpiling in three years and transport-cost pressure at a four-year high. (spglobal.com; morningstar.com) The immediate trigger was disruption on the sea lanes linking Asia, Europe and the Middle East. GEP said the March jump reflected an energy-price shock and maritime disruption tied to the war in the Middle East. (prnewswire.com) Those routes matter because the Suez Canal carried about 22% of global seaborne container trade in 2023, giving ships a direct path between Asia and Europe. When carriers avoid the Red Sea and Suez, they often sail around southern Africa instead, adding time and cost. (unctad.org) Asia showed the sharpest freight strain in the March survey. GEP said manufacturers there reported weaker demand at the same time that transport costs rose sharply, a combination that can squeeze margins even before shortages hit factory output. (prnewswire.com) Europe responded by building safety stock more aggressively than any other major region, while North America saw cost pressure build even as demand stayed soft. That pattern suggests companies were treating the shock as a risk to availability first and a demand story second. (prnewswire.com) The United Nations Conference on Trade and Development warned in 2024 that disruption in the Red Sea, Suez Canal and Panama Canal was already pushing up freight rates and threatening supply chains. S&P Global said in February 2026 that Red Sea traffic had started to resume, but renewed threats were still keeping route planning uncertain for shippers. (unctad.org; spglobal.com) GEP Vice President John Piatek said the latest data show higher costs, stockpiling and shortages, but not yet a shock large enough to materially slow global growth. For now, the survey points to a world economy still moving goods, but doing it with more detours, more inventory and less room for error. (marketwatch.com)
