Global chemicals supply chains are facing disruption on an unprecedented scale, costing cargo owners more than $12.2 billion annually, according to a new analysis by DP World. The study highlights over 17,500 logistics-related incidents each year, underscoring severe stress points at borders, ports and regulatory checkpoints.
With chemicals forming the backbone of 96% of all manufactured goods, disruptions in their movement are quickly transmitted across the global economy, resulting in manufacturing slowdowns and delays in sectors such as agriculture, construction and consumer products.
Disruption has become routine for the industry. Over the past three years, 92% of chemical cargo owners reported customs or border delays, 91% experienced impacts from geopolitical instability, and 90% were affected by port congestion. The financial impact is significant, with the average cost of a single disruption now estimated at $700,000. Nearly one-third of businesses reported annual losses exceeding $1 million, while one in ten faced losses of $5 million or more.
Operational efficiency has also taken a hit. More than half of cargo owners said disruptions erased over a month of operational time, with transit and lead times increasing by at least 11%.
Despite these challenges, industry confidence remains strong. Almost 90% of chemicals leaders believe they can scale operations efficiently over the next three years, driving increased investment in logistics. Digitalisation has emerged as the top priority, with 86% of respondents identifying it as the most critical tool for building supply chain resilience.
However, the study points to a widening gap between ambition and execution. Persistent weaknesses remain in forecasting, planning, supplier reliability and end-to-end visibility—areas where digital platforms, integrated logistics networks and predictive analytics could deliver significant improvements.
“Chemicals underpin every major industry, which makes logistics failures uniquely consequential,” said Markus Kanis, Global Senior Vice President – Chemicals, DP World. “In today’s environment, visibility and flexibility are not optional; they are the foundations of resilience.”
Echoing this view, Beat Simon, Chief Operating Officer – Logistics, DP World, said that the strongest performers are those investing early in visibility, scenario planning and multi-route resilience. “By building networks that can flex and recover, chemicals cargo owners can reduce costs, protect commitments and strengthen their competitive position,” he noted.
As geopolitical tensions and climate volatility intensify, the chemicals sector is emerging as a key test case for next-generation logistics models. DP World’s analysis urges companies to address systemic vulnerabilities and accelerate the redesign of supply chains for a world where disruption is no longer the exception, but the norm.
The findings are based on DP World’s global study of 680 senior logistics leaders across eight industry sectors, including senior decision-makers from chemicals companies. The research combines primary survey insights with a data model linking disruption costs to logistics investment, company size and reputational impact, providing an executive-level view of supply chain resilience and the true cost of disruption.
