Supply chain industry body SAPICS says that the effects of the war in Iran are already rippling through global supply chains and that South African businesses and consumers are unlikely to be spared. Disruptions to energy markets, maritime shipping routes and logistics insurance significantly increase the cost and complexity of moving goods to and across Africa. As businesses are forced to pay more, the burden will be passed on to consumers, SAPICS warns.
“ Supply chains are highly interconnected global systems,” says SAPICS president Thato Moloi.“ When geopolitical tensions affect major energy corridors or shipping routes, the consequences travel quickly through logistics networks and ultimately reach businesses and consumers everywhere.”
One of the most immediate impacts of the conflict is volatility in global oil and diesel markets. Diesel is the backbone of logistics. Trucks, freight rail networks, port equipment and agricultural machinery all depend on it. When diesel prices rise, the cost of moving goods increases almost immediately.
14 sabusinessintegrator. co. za