Iran War Standoff Triggers Freight Rate Hikes and Delivery Delays

What if freight rates jump 20-30% on impacted routes?

Simulate a scenario where carrier pricing for Middle East-connected routes increases 20-30% due to geopolitical risk premiums, fuel surcharges, and reduced vessel capacity from route avoidance. Model the cost impact across your supply chain, evaluate which products become uneconomical to ship, and identify sourcing alternatives or market price adjustments needed to maintain margins.

What if Middle East shipping routes add 10-14 days to transit times?

Model the impact of supply chain routes normally transiting through or near Iran being forced to reroute around Africa or through alternative corridors, adding approximately 10-14 additional days to total transit time. Assess how this affects inventory positioning, safety stock requirements, and ability to meet service level commitments across regions dependent on these trade lanes.

What if you need to increase safety stock by 15-20% to buffer longer lead times?

Assess the inventory and working capital implications of building 15-20% additional safety stock across critical SKUs to compensate for extended transit times and route uncertainty. Model the carrying cost impact, warehouse capacity requirements, and cash flow effects across your distribution network.