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Middle East tensions: SL’s logistics sector must brace for supply chain pressure

Middle East tensions: SL’s logistics sector must brace for supply chain pressure

15 Mar 2026 | By Thilina Siriwardena


The logistics industry has learnt, repeatedly, that global supply chains do not break neatly. They fray. They slow. They become more expensive. And the effects show up far from where the disruption begins.

The latest escalation in the Middle East is a clear example. Even though Sri Lanka is not directly involved, the region sits beside the world’s most sensitive trade corridors. When security risks rise in and around the Red Sea, Persian Gulf, and Strait of Hormuz, shipping and air networks react immediately. 

That reaction is what matters to us, because Sri Lanka’s exporters, importers, and freight forwarders operate inside those same networks.


What changes first is reliability


In normal conditions, supply chains are built around predictable schedules. When risk increases, however, predictability is the first casualty.

Shipping lines begin to reassess routes. Airlines reassess airspace. Ports and hubs take on uneven volumes as cargo shifts. The result is simple: transit times become unstable. Connections become harder to guarantee. Planning becomes guesswork unless you build buffers and alternatives into your operation.

For Sri Lanka, this can affect cargo even when it is not destined for the Middle East. Why? Because vessel capacity, equipment availability, and schedules are shared across trade lanes. When a major corridor is disrupted, the pressure spreads across the network.


Costs do not rise in one place – they rise everywhere


The second effect is cost, and it often comes in layers.

There is the obvious impact of longer voyages when vessels avoid high-risk corridors. More days at sea means more fuel, more crew time, and more operational expenses. Then come the financial layers, such as higher insurance premiums and risk-related surcharges. Finally, the downstream costs show up at ground level through congestion, longer container dwell times, and knock-on charges like storage and demurrage.

For shippers, this is not just a freight problem. It becomes a working capital problem. Delays disrupt production cycles, retail inventory planning, and cash flow. And when costs spike suddenly, pricing decisions become harder for Sri Lankan businesses already operating under tight margins.


Air cargo becomes a pressure valve, until it does not


When ocean schedules become unreliable, many shippers look to air freight for time-sensitive cargo. But in a region-wide escalation, air routes also face constraints. Rerouting around restricted airspace can extend flight times and reduce schedule reliability. Capacity tightens quickly, backlogs build, and urgent cargo becomes expensive cargo.

This is where a clear prioritisation mindset matters. Not every shipment should move at any cost. In volatile periods, decision-making must be tied to what truly protects revenue, customer commitments, and service continuity.


What SL’s logistics industry should do now


This is not a moment for panic. It is a moment for disciplined execution.

  1. Build buffer time into planning: If your cargo relies on transshipment, Europe-facing lanes, or time-bound delivery windows, assume schedules will shift. Align this early with customers and internal stakeholders.
  2. Confirm and reconfirm: In fast-moving situations, yesterday’s plan can change by today. Revalidate vessel schedules, cut-offs, transshipment connections, and airline routing before dispatch.
  3. Strengthen alternatives before you need them: Freight forwarders should maintain multiple carrier options, routing options, and modal options. The strongest operators will be the ones who can move from Plan A to Plan B without disruption to the customer.
  4. Tighten documentation and clearance readiness: When ports and hubs become congested, documentation errors are punished more severely. Clean paperwork and faster clearance reduce exposure to storage and demurrage.
  5. Manage cost exposure transparently: Customers do not react well to surprises. Explain what is happening, what costs may change, and why. Present options clearly, including the trade-offs between speed, cost, and certainty.
  6. Treat visibility as a core service: In volatile periods, the forwarder’s value is not only moving cargo, but reducing uncertainty. The best customer experience is proactive updates, realistic timelines, and practical contingency options.


A test of professionalism, not just capability


Sri Lanka’s logistics sector has faced disruption before. What separates strong operators from average ones is not whether they can move freight in calm conditions, but whether they can protect customers during turbulence.

This moment demands the basics, done exceptionally well: planning, communication, flexibility, and control of detail. The market will remember who provided clarity, who offered options, and who remained dependable when the network was unstable.


(The writer is the Chief Executive Officer of Envio Global Logistics)


(The views and opinions expressed in this article are those of the writer and do not necessarily reflect the official position of this publication)



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