Global Manufacturers Face Mounting Crisis as Nations Fight for Port Control

Global manufacturers and retailers are grappling with a deepening crisis in ocean shipping that is undermining supply chain stability and driving up costs across industries. Intensifying geopolitical competition over port control is creating systemic vulnerabilities that directly threaten operational efficiency and profitability.

Escalating Costs and Volatility

Freight rates swing unpredictably as vessels reroute around conflict zones, adding 10–14 days to Asia-Europe journeys and inflating costs by three to five times on key routes. Sudden port and carrier bunching triggers 30% spikes in inbound trailer arrivals at warehouses, generating massive demurrage and detention fees while shattering just-in-time inventory models.

Strategic Fragmentation and Preferential Treatment

China’s extensive network — operating or holding stakes in at least 129 overseas ports — enables faster customs clearance and priority handling for its own cargo. Research by MERICS shows that Chinese terminal control boosts bilateral trade with China by over 20%, while reducing partner countries’ exports to other markets by 19%. Data platforms like LOGINK further increase visibility risks for non-Chinese shippers navigating a bifurcated global network.

Duplicative Investments and Long-Term Inefficiency

The global port construction market is projected to reach $346.53 billion by 2035, yet much of this expansion risks creating overlapping capacity rather than genuine resilience. The result is higher fixed costs passed directly to shippers, without solving underlying bottlenecks.

As Zhu Tao, Chairman of COSCO, stated: “Expanding our presence in ports remains a critical response” to growing geopolitical competition.

While AI-powered yard orchestration tools offer partial relief, Oana Jinga, Co-Founder and Chief Commercial and Product Officer at Dexory, noted in a written response to a query from The Supply Chainer: “When a warehouse experiences a sudden 30% surge in inbound trailers, the difference is not just better scheduling — it is the ability to respond in real time... An AI-powered orchestration platform enables operators to dynamically reprioritise dock assignments, rebalance labour, and absorb spikes within the first 24 hours without creating downstream bottlenecks.”

They cannot, however, address the root cause: a fragmented maritime system increasingly shaped by strategic rivalry rather than commercial efficiency.

For companies shipping goods worldwide, the burden continues to grow through elevated prices, delayed deliveries, and eroded supply chain predictability. Without greater coordination on open access and neutral operations, these pressures will only intensify.