10/12/2026
Navigating New Frontlines
Six Critical Questions for Managing Cargo Amid Global Challenges
Another day at the office, and once again, a new “battlefield” emerges, raising more questions than providing direct answers. Keeping cargo flowing with so many hot spots on the map is a shared concern. Let’s work together to separate the issues that require urgent short-term fixes from longer-term scenarios which can still provide acceptable service levels.
From a risk management perspective, this means that cargo routings options need to be continuously benchmarked, to navigate and minimize the negative effects of chokepoints.
Even though the combination of competitive rates and acceptable, steady transit times remain the main factor to consider in the global matrix, we believe there is room for additional internal flow management challenges. These can be addressed by developing purpose-built indexes to add and weigh accordingly.
To tackle these aspects, we have selected six questions that were almost completely irrelevant in yesterday’s world, but which, in our opinion, are highly relevant in today’s environment.
1. Is the shortest and more direct solution from A to B the most relevant, considering your specific cargo requirements in terms of risk exposure?
Not anymore, as a general rule. Minimizing chokepoints in routings has become an important new criterion to consider, and in some cases, port congestion can also be seen as a chokepoint. A safety routing index in the Excel sheets can help differentiate between options.
Sea-air and sea-road multimodal solutions, as well as full dedicated long-distance trucks, can really make sense now for some specific cargo.
As for ports locations, quality varies from one terminal to another for the same port code. Terminal performance depends a lot on infrastructure, capacity management and space. Terminal selection adds granularity to the study, and in some cases, it can be a very good criterion to work on alongside carrier selection.
As an example, Tailwind in Vietnam operates in Ho Chi Minh at an independent terminal not primarily focused on container handling. While this choice might seem unexpected at first, it is quite relevant, as it avoids being in the midst of congestion.
2. Can you split volumes routings for existing flows to better manage risks?
At first glance, this may seem counterintuitive, given our natural tendency to seek leverage through massification. In today’s uncertain world, putting all your eggs in one basket is gaining traction in decision-making matrices.
As an example, on the transatlantic westbound route, temporarily diverting some cargo flows destined for the US via Mexican or Canadian ports can help navigate the US administrative roller coaster.
3. Do you have a structural ongoing nearshoring approach in sourcing, or do you remain in a more short-term opportunistic approach?
This leads us to the definition of customer profiles in terms of short-term versus long-term approaches. Both are respectable and relevant, depending on the case, and can of course vary over time. For us, this is a key element in shaping the customer relationship and building a fruitful partnership.
Even though the nearshoring ratio is slowly shifting in macroeconomic trends with a rate of around +1,5 % a year since the Pandemic, European economies take it into account, with Turkey and Morocco emerging as new “local champions”.
As an example, the Jacob Delafon case near Tangier replacing Asian origins by on site manufacturing scenarios. From a supply chain perspective, a far leaner model in terms of call to market reactivity and safer cargo connections.
4. Do you still manage cargo insurance aside from the logistical aspects or is it now integrated into the matrix for choice?
Price and coverage for cargo insurance were minor topics before the crisis, often limited to minimal general average coverage just to comply with commercial contracts. Between Asia and Europe, this has been a factor that gave traction to the now-established, longer, and safer Cape of Good Hope route, as it helps keep costs low and manageable, compared to quicker alternatives.
Today, cargo insurance can, in some cases, be a “showstopper,” and trade-offs are not easy to find in terms of business competitiveness. There is more benchmarking to be done on this criterion, and GEODIS can provide these types of services through our network.
No example this time, but just a kind reminder: your forwarder will never cover your cargo with specific insurance unless you have requested it in writing, even for general average situations - which can be a nightmare for cargo owners without coverage.
5. Do you have access to a controlled « barn » to cover at least 3 weeks of cargo shortage by « on the button » road calls?
A “barn” is a friendly word for a buffer stock with maybe a slightly more romantic touch as very often… you can discover hidden treasures in a barn!
A forbidden and unacceptable term in pre-COVID logistics - dominated by just-in-time practices, realism, and pragmatism - over the past six years has convinced most supply chain managers worldwide to reconsider their views on this topic for the sake of efficiency and coherence.
Navigating through crisis implies more than ever a more substantial intermediary buffer approach in the scenarios to ensure required quality. Our network and very often internally controlled worldwide warehousing facilities is a key component to streamline your flows.
6. Early termination of the contract by the carrier, what are your options to shift your cargo towards non planned or primarily identified markets, is your « return to sender » contractual clause robust enough to be activated?
Something rather counter intuitive in terms of contracting but yes, a liner carrier can legally terminate unilaterally its transportation contract in the closest nearby accessible location of its choice to the previously intended port of delivery.
In recent weeks, around the closure of Ormuz and the related war zone status of the Middle East area, many shipments with a Persian Gulf destination ended their voyage in India or in Pakistan, when it was not on the Eastern coast of Africa at shipper’s risks and expenses.
As the use of this option by liner carriers is likely to become more frequent in today’s environment, it leads to two new work cases:
- Building cargo routes with an intermediate downgraded market plan B access in mind, to try to avoid total losses.
- Working more on return cargo clauses format in commercial contracts as a safety net, not as preliminary intention of course, but again to better hedge risks. Usually for dry cargo, return cargo clauses offered by the liner carriers can be negotiated for half of the initial freight rate of the concerned shipment but as a prerequisite the exporter or original shipper of the goods will have to accept to get them back. Many recent stories show that in real life, this is not that easy to activate if this topic has not been previously put down on paper between co-contractors.
All these topics were considered largely marginal in pre-COVID scenarios, but they are no longer seen that way because they have clearly become central to today’s big picture, marked by the return of trade barriers, geopolitical tensions, and the volatility of maritime capacities.
Perhaps today, more than ever, we must deal with a more complex reality, reinvent our relationships, and develop more adaptive scenarios through greater inventiveness and confidence.
For decades, the freight forwarder advisor role has been minimized due to the focus on price and process optimization in a hassle-free flowing world. Today, whether you are a BCO (Beneficial cargo owner) or a smaller shipper, our concern is to reintroduce our advisory role so that we can be your co-pilot in these choppy waters, helping you achieve the required performance while maintaining manageable risk exposure.
The challenge is all about finding, together with you, a new balance in managing both material and intangible flows, ensuring data and cargo safety and control in an increasingly risky and unpredictable world. At GEODIS, this is what we are aiming for and dedicated to, every single day. Another day at the office!
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