Marine supply chain disruptions are costing the consumer goods sector more than $12 billion each year, as persistent instability across shipping and logistics networks continues to disrupt operations, according to a global study by DP World.
Scale And Sources Of Disruption
The study found that disruptions have been widespread over the past three years. Eighty percent of brands reported being affected by geopolitical events, while 86 percent cited port congestion. Technology failures affected 87 percent of respondents, and 91 percent experienced delays linked to climate-related factors.
Each logistics failure carries an average cost of $680,000. In years marked by heightened disruption, companies lose more than a month of productive time as internal teams shift focus from growth activities to stabilising supply chains.
Operational Impact And Customer Consequences
The effects extend beyond internal operations. Three-quarters of cargo owners reported an increase in customer complaints following disruptions. Sixty-eight percent said they lost business or contracts, while 56 percent reported damage to brand image. More than half, at 52 percent, experienced strained relationships with supply chain partners.
As disruptions become more frequent and more visible to end customers, expectations are changing. The study found that reliability is increasingly tied to brand trust, with companies directly linking supply failures to lost customers and weakened contractual relationships.
Confidence Versus Measured Performance
Despite these challenges, confidence levels among cargo owners remain high. Ninety-one percent said they believe they can scale operations efficiently, 88 percent stated that delivery performance differentiates them from competitors, and 87 percent described their operations as agile.
The data shows a disconnect between perception and outcomes. More than half of companies, 53 percent, lose over a month of productive time during disrupted years. One-third take longer than a month to recover normal operations after a disruption occurs.
Investment Gaps And Shifting Priorities
Visibility remains a widely acknowledged issue. Ninety-four percent of respondents cited limited visibility as a major challenge, yet only 27 percent ranked visibility improvements as a top investment priority. Formal risk management or resilience planning is adopted by just 39 percent of companies.
The study indicates early signs of change. Seventy-five percent of companies expect to increase logistics investment over the next three years. Spending on automation and artificial intelligence is also expected to rise, with 65 percent planning increased investment within the next 12 months and 85 percent within three years.
Companies that already invest across four or more logistics areas reported disruption-related costs that are 76 percent lower than those with fewer investments. Seventy-eight percent of respondents said reliability is critical to retaining customers, particularly as disruption-related losses remain closely tied to service performance.
Featured image credits: Carol M Highsmith via rawpixel
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