Supply Chains Face Growing Geo-Economic Pressure
Executives across Southeast Asia increasingly cite geopolitical trade actions as a top concern, according to a new Standard Chartered survey.
Updated on Nov. 5, 2026 in International Trade
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Toll Group executive chairman Thomas Knudsen said companies must build robust supply chains as repeated shocks since 2020 disrupt trade. Standard Chartered reported that ASEAN executives citing geo-economic actions as a top trade concern rose from 49% to 57%.
Why it matters
Recurring disruptions from the pandemic, Russia's invasion of Ukraine, new U.S. tariffs and the closure of the Strait of Hormuz have pushed firms to rethink how goods move. Tariffs have also led Chinese companies to seek new markets and manufacturing hubs.
A Standard Chartered survey of 2,100 senior corporate leaders across 27 markets found the share of ASEAN executives citing geo-economic actions as a top concern rose from 49% to 57%. Only about 22% of ASEAN trade occurs within the bloc, compared with roughly 60% for the European Union, and the survey does not address how these shares may shift.
The players
Thomas Knudsen
Thomas Knudsen is the executive chairman of Toll Group, a Japan Post-owned freight forwarding and contract logistics firm operating across Asia.
Standard Chartered
Standard Chartered is a London-headquartered international bank whose Future of Trade report surveyed senior corporate leaders across 27 markets.
The details
Robustness in practice means holding spare capacity, including backup routes by truck and rail alongside ocean and air freight. Sea-air combinations, which fly cargo part of the way and ship the rest, are one approach companies are using to diversify their logistics.
Timeline
Since 2020: supply chain shocks begin with the COVID-19 pandemic.
2022: Russia's invasion of Ukraine disrupts supply chains.
2025: Trump tariffs and the end of de minimis add further shocks.
1992: The ASEAN Free Trade Area is established, eliminating intra-bloc tariffs.
Market Dynamics
Only about 22% of ASEAN trade happens within the bloc, far below the roughly 60% share in the European Union, despite the Free Trade Area established in 1992. The gap suggests that tariff removal alone has not made the region's supply chains self-contained.
Businesses that depend on ASEAN supply chains may face higher freight costs and longer delivery routes as firms add backup transport options. Shippers and buyers should expect logistics planning to take longer as geopolitical disruptions continue.
The takeaway
Building spare capacity and backup routes now may cost more upfront, but it reduces exposure to the next shock. Companies that plan for disruption across several modes of transport are better positioned than those relying on a single route.
Further reading
Explore more on International Trade to see how tariffs and shocks are reshaping global supply chains.
Source note: This article includes information reported by Fortune.
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