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Supply Chains in Crisis: Agility's Insight on Global Logistics Restructuring

In light of increasing economic uncertainties, logistics professionals worldwide are facing intense challenges. Recent findings from the Agility Emerging Markets Logistics Index 2025 reveal that over 62% of industry experts have restructured their supply chains as a defensive measure against inflation, impending trade tariffs, and a looming global recession.

The urgency of these measures reflects the raw realities of the current global landscape: almost 55% of the professionals surveyed anticipate a worldwide recession, while 82% acknowledge that tariffs and other forms of trade protectionism are adversely impacting their supply chains. Furthermore, 72% report heightened risks in emerging markets — a clear indicator of the shifting dynamics that logistics companies are now grappling with.

Tarek Sultan, Vice Chairman of Agility, notes, “There’s a cautious and uncertain atmosphere among shippers, carriers, freight forwarders, and other stakeholders concerning geopolitical factors that are driving up costs, altering trade volumes, and reshaping supply chains.” As a response to these pressures, many international companies are reconsidering their production locations, re-evaluating their investment plans, and seeking sustainable growth paths.

Restructuring Strategies

With the U.S. expected to impose tariff hikes and alongside an anticipated surge of exports from China, the logistics sector is on high alert. According to the survey, logistics stakeholders not only face potential trade wars but also have to manage rising operational costs. Specifically, the index points to a significant shift in procurement strategies, highlighting that 54% of companies plan to relocate production or sourcing away from China within the next five years.

This strategic necessity stems from ongoing trade tensions, escalating labor costs, and increasing domestic regulations that complicate the manufacturing landscape in China. Despite these challenges in the East, 35% of respondents remain optimistic about investing in Africa by 2025, aiming to tap into underexplored markets—indicative of a broader trend towards diversifying global supply chains.

The Emerging Markets Logistics Index Insights

The 2025 Agility Emerging Markets Logistics Index provides a detailed landscape of logistical dynamics across various countries. It ranks 50 leading emerging economies based on logistics strength, business climate, and digital readiness, vital factors for attracting logistics service providers, carriers, and investors.

Among the key highlights, the GCC (Gulf Cooperation Council) countries stand out, with the UAE ranked first for business climate, Saudi Arabia third, and Qatar fifth, showcasing their resilience amidst global upheavals. The UAE and Saudi Arabia have emerged as “beacons of stability,” investing heavily in infrastructure, artificial intelligence, and workforce development—coupled with ongoing efforts to enhance sustainability initiatives.

Similarly, Asian giants like China and India lead the index in terms of international logistics capabilities, while countries such as Indonesia and Vietnam are also making significant strides. However, nations like Nigeria and Ukraine have witnessed drops in their rankings, bringing forth the idea that volatility is often coupled with uncertainty.

A Call for Resilience

The logistics sector is embarking on a new era one that demands agility in the face of macroeconomic fluctuations and geopolitical tensions. John Manners-Bell, CEO of Transport Intelligence, notes that “the ability to respond effectively to global events will be pivotal for success.” No longer can businesses operate on a return-to-normal basis; they must adapt continually, rethinking their operational and procurement strategies to ensure resilience.

Ultimately, while the landscape is fraught with challenges, companies that successfully navigate these waters will emerge more resilient, transforming their supply chains into engines of adaptability and innovation.

For comprehensive insights into Agility's logistics initiatives and industry benchmarks, the full report is available on their official website.