The impact of the Middle East war on global shipping has demonstrated how geopolitical shocks can drastically affect operational planning.
Accelerating Cyclicality
Shipping markets have always experienced cycles, but these are becoming more frequent and volatile, driven by geopolitical effects, macroeconomic factors, energy market shifts, supply and demand, evolving regulation and critical stockpiles in key countries.
Optimization
Optimization is no longer solely determined by speed and fuel efficiency, but by diverse factors that are reshaping voyage economics – and this makes operational decision-making more complex than ever.
- Fuel price volatility
- Rapidly moving freight markets
- Regulatory shifts that impact carbon costs
- Delays and trade disruption caused by port congestion, weather or regional conflict
StormGeo’s Commercial Lead Routing Rolf Reksten notes that operators have to expect the unexpected and be agile in their thinking.