Global Chemicals Supply Chains Face $12 Billion in Annual Disruption

DP World, a global logistics and port operator, said chemicals supply chains are experiencing unprecedented disruption, based on a survey of 680 senior logistics leaders across eight industry sectors. The survey found more than 17,500 logistics incidents occur each year, resulting in over $12.2 billion in annual losses for cargo owners. Chemicals underpin 96% of global manufactured goods, making supply chain failures impactful across sectors including agriculture, construction and consumer products.

According to DP World, 92% of chemical cargo owners have experienced customs or border delays over the past three years, 91% have faced geopolitical disruptions, and 90% have been affected by port congestion. A typical disruption costs around $700,000, with nearly one-third of companies reporting annual losses exceeding $1 million. One in ten cargo owners faces disruptions costing $5 million or more, while more than half report losing over a month of operational time due to disruptions, with transit and lead times rising by at least 11%.

Despite these challenges, DP World found nearly nine in ten chemical industry leaders remain optimistic about scaling operations efficiently over the next three years. The study highlighted digitalization as the most likely area to improve supply chain resilience, with 86% of cargo owners citing it as a priority.

Markus Kanis, global senior vice president, chemicals, said in a statement, “Chemicals underpin every major industry and that makes logistics failures uniquely consequential. Our research shows a sector deeply exposed across borders, ports and geopolitical flashpoints, while managing hazardous and time-sensitive cargo. In today’s environment, visibility and flexibility are not optional, they are the foundations of resilience,” according to the company.

Beat Simon, chief operating officer – logistics, added, “Across every sector we study, disruption is exposing where supply chains lack resilience, but the chemicals industry faces some of the highest risks of all. The strongest performers invest early in visibility, scenario planning and multi-route robustness. By building networks that can flex and recover, chemicals cargo owners can reduce costs, protect commitments and strengthen their competitive position,” according to the company.

The analysis also aligns with a recent PwC industry outlook showing chemical producers are adjusting portfolios through divestitures and strategic deals as market volatility, overcapacity and low commodity prices weigh on margins. PwC noted that specialty chemicals remain a more resilient segment, while European producers are shuttering facilities and U.S. companies increasingly focus on regional production and reshoring initiatives.