The global landscape is shifting. With tensions rising in various regions, trade is being heavily influenced by political unrest and military actions. This means both new opportunities and challenges for freight companies, especially those in the defence, aerospace, and government sectors. While the demand for defence-related exports is increasing, the logistical hurdles of handling sensitive cargo and managing supply chain disruptions are more complex than ever.

How can freight forwarders adapt to these changes? With exports on the rise, there’s a growing need for specialised expertise in areas like AOG support and sensitive cargo handling, all while managing the risks of global conflict.

In this blog, we’ll look at how global conflict is reshaping the freight forwarding industry and explore how your business can navigate new opportunities and challenges in this changing environment.

The Impact of Global Conflict on Freight Forwarding

Global conflicts disrupt international trade, forcing freight forwarders to navigate a host of new challenges. Rising demand for military equipment and other defence-related products drives U.S. defence exports, but heightened tensions also transform supply chains unpredictably. The ripple effects are felt across freight operations, from sanctions to disrupted shipping routes.

Take the Russia-Ukraine conflict, for example. Black Sea ports, critical to global trade, have been blocked, cutting off key shipping routes and increasing transport times and costs. Ukrainian exporters have had to redirect goods through European ports, further straining infrastructure. Sanctions on Russia have shifted global trade patterns, too, with India and China becoming major buyers of Russian oil while Europe increasingly relies on U.S. coal and energy. Freight forwarders must adapt quickly, find alternative routes, and balance new logistical pressures.

The U.S.-China trade relationship tells a similar story. China’s dominance in global manufacturing creates vulnerabilities for supply chains reliant on Chinese production. Ongoing trade tensions, including tariffs and geopolitical risks, highlight the fragility of this interdependence. Delays, rising shipping costs, and increased scrutiny at ports—particularly West Coast hubs like Los Angeles and Long Beach—are already straining operations.

Key Challenges in Freight Operations During Global Conflicts

Global tensions, both current and future, are forcing freight-forwarding operations to adapt rapidly. The rising demand for military equipment and other defence-related products is creating new and growing challenges for the industry.

Let's examine some of the industry's most common challenges when global conflict or rising tensions occur.

Rising Costs

With the disruption of global shipping routes, transport costs inevitably increase. The consequences of geopolitical events—such as border closures, fuel price hikes, or the diversion of shipments to longer routes—result in higher operating costs across the board. The Freight industry is especially vulnerable to these fluctuations, with rising prices directly affecting their bottom lines.

Shifting Trade Flows

Global conflicts often prompt major shifts in trade flows. The Russia-Ukraine war and U.S.-China trade tensions are prime examples of how conflicts change the global commerce landscape. As countries impose sanctions, find new trade partners, and adapt to changing supply and demand, freight forwarders must constantly adjust. These changes require quick thinking and adaptability to ensure shipments stay on track and within deadlines.

Increased Security Risks

As freight forwarders deal with sensitive cargo, such as military equipment, security risks rise. Global conflict creates an environment where security needs to be heightened, from theft to sabotage and even terrorism. The increased risk means more regulations, security checks, and costs for freight forwarders responsible for safeguarding these goods.

Geopolitical Instability and Port Congestion

Global conflicts have a direct and often disruptive effect on shipping routes, creating headaches for almost all of the freight industry. The closure or redirection of critical trade corridors—like those in the Black Sea during the Russia-Ukraine conflict—means goods must be transported further or through less reliable channels. This translates into higher transport times and significant cost increases.

The industry’s reliance on specific routes, such as those that link the U.S. to key markets, is a vulnerability. 

Opportunities for Freight Companies

Global conflict and geopolitical tensions are undoubtedly challenges for the freight-forwarding industry. While it’s important to stay mindful of the risks and disruptions they bring, global conflict is nothing new. Though we can hope it doesn’t escalate further, there’s a silver lining—these challenges often create opportunities.

As tensions rise, new demands emerge for industry-specific freight services. The growing need for secure, reliable solutions for high-value and sensitive cargo presents a chance for freight businesses to thrive. 

Let’s explore how the current global environment is offering these opportunities and why it’s a prime time for companies to sharpen their focus on these specialised sectors.

Rising Demand for Specialised Freight Services

As the military and aerospace sectors expand, there’s a growing need for freight services that can handle high-value, sensitive cargo. With these industries evolving, the demand for reliable, secure transportation intensifies. Freight companies with expertise in these areas have the opportunity to become trusted partners by offering expert handling, security, and regulatory compliance.

Specialisation as a Competitive Advantage

Developing expertise in classified cargo, regulatory compliance, and high-security shipments helps businesses stand out. Specialising in defence, aerospace, and government logistics positions freight-forwarding companies as leaders in a field where precision and security are paramount. This specialisation isn’t just about meeting market demand—it’s about mastering the complexities of these high-value sectors.

Increased Defence Spending and Aerospace Growth

U.S. defence exports to allies are increasing, presenting opportunities for companies that can handle sensitive, high-security shipments. Aerospace growth, particularly in space exploration and satellite projects, also fuels demand for specialised freight services.

Technological Advancements in Freight Logistics

Emerging technologies like AI and blockchain are enhancing freight logistics tracking, security, and efficiency. Companies investing in these technologies can improve operations and meet the growing need for secure, transparent systems to handle military and aerospace cargo.

Cross-Border Logistics and International Trade

Stronger global trade relationships, especially with key strategic allies, create more opportunities for freight companies to manage complex, cross-border logistics. As international shipments of defence goods increase, expertise in navigating customs and trade regulations is a competitive edge.

Challenges Freight Companies Must Overcome

We’ve just highlighted the opportunities in the government, aerospace, and defence sectors, but as we all know, a set of challenges comes with every opportunity. It’s like trying to get a shipment through customs on time—everything looks good until the last-minute complication hits. These new avenues for growth bring their own complexities, so let’s take a look at the challenges freight-forwarding businesses need to address to capitalise on the potential of these sectors.

1. Managing Tight Timelines and Complex Routing

Time-sensitive, high-security shipments are increasingly common across various sectors, putting freight forwarders under pressure to meet tight deadlines. These shipments often involve complex routing, multiple stakeholders, and last-minute changes, making logistics more challenging.

How to Tackle It:

• Plan ahead with contingency strategies to account for delays or sudden route adjustments. This helps avoid last-minute errors and ensures deadlines are met.
• Invest in digital tools such as predictive analytics and real-time tracking to manage timelines and adjust plans as needed.
• Work closely with all stakeholders, including clients, to ensure full alignment on expectations and timelines.

2. Increased Demand for Specialised Equipment

The surge in military and aerospace shipments necessitates the use of specialised containers, vehicles, and handling procedures, putting a strain on freight companies' resources. As the demand increases, so does the complexity of managing these high-security shipments. 71% of global companies report that rising raw material costs are their biggest supply chain threat, highlighting the growing pressure on logistics businesses to source and manage the necessary specialised equipment efficiently.

How to Tackle It:

• Collaborate with suppliers that specialise in providing custom equipment for sensitive shipments.
• Ensure your team has the expertise to handle high-security goods, managing the logistics of military and aerospace shipments seamlessly.
• Partner with a recruitment expert to source skilled professionals who understand the specific technical needs of these industries, ensuring operational efficiency.

3. Security and Compliance

Adhering to security regulations such as ITAR and customs compliance is non-negotiable when handling military, aerospace, and government shipments. These regulations become even more complex as geopolitical tensions rise and require constant attention. A recent survey found that 88% of companies believe that geopolitical risks have a medium to high impact on their supply chain risks, underscoring the growing need for careful regulatory compliance to avoid costly fines and delays.

How to Tackle It:

• Stay up-to-date with international trade regulations, ensuring compliance with customs, ITAR, and other security-related requirements.
• Invest in compliance management systems to streamline processes and reduce the risk of errors.
• Regularly train staff on the latest changes in regulations and build a network of professionals with expertise in customs and export controls.

4. Capacity Constraints

As demand for high-priority shipments increases, pressure on air and sea freight capacity grows. It’s not just about the volume of goods—it’s about meeting deadlines while managing costs. Rising fuel prices and geopolitical risks add further complexity to an already challenging situation.

How to Tackle It:

• Be flexible. Don’t rely on just one route or mode of transport.
• Work with your partners to ensure your capacity is used wisely and efficiently.
• Use advanced logistics tools to better plan and forecast capacity needs.

5. Labor Shortages and Skill Gaps

Let’s be honest: there’s a growing gap when it comes to talent in critical areas like transportation, warehousing, and customs compliance. And the problem isn’t just about the numbers—it’s about having the right people who understand the complexities of freight forwarding. 

Global conflict changes everything: who you need, when you need them, and what for. The demand for experienced executives to manage high-level strategy is just as pressing as the need for operations managers to keep day-to-day logistics on track. As tensions rise, having the right talent in both high-level and operational roles is crucial. Whether it’s someone to handle customs compliance or logistics experts to coordinate military shipments, your team needs the right mix of people in place—fast.

How to Tackle It:

• Work with a specialist recruitment partner who understands the specific skill sets required for this industry.
• Develop your team’s skills by offering regular training and development opportunities.
• Build a solid talent pipeline by partnering with educational institutions specialising in logistics and supply chain management.

6. Navigating Global Conflict with the Right Technology

As global conflict disrupts supply chains, freight forwarders across various sectors face increasing risks of delays, security breaches, and route changes. These challenges can be unpredictable, creating ripple effects that impact timelines and compliance.

The good news? Technology is offering ways to manage these risks effectively.

How to Tackle It:

• Real-time tracking gives you live updates, helping you monitor shipments, react to delays, and adjust routes swiftly in response to global events.
• Blockchain ensures transparency and security, which are crucial for military and sensitive cargo. It makes it easier to trace goods across multiple jurisdictions.
• Predictive analytics can help forecast potential disruptions, allowing you to stay ahead of capacity constraints and find alternate routes before issues arise.

With the right technology, freight companies can turn these challenges into manageable tasks, ensuring shipments stay on course even amid geopolitical uncertainties.

Final Thoughts on Navigating Global Conflict in Freight 

Global conflicts are reshaping trade, supply chains, and freight operations, creating a world where challenges and opportunities coexist. Companies must adapt by reworking strategies, building resilience, and rethinking their approach to logistics.

Success in this environment relies on a commitment to innovation, adaptability, and staying ahead of disruption. Managing risk, embracing new technologies, and securing the right people will define the ability to thrive in uncertain times.

The future is unpredictable, but with the right approach, obstacles can become opportunities for growth.

Secure the Talent You Need to Thrive Amid Global Conflict

Global conflict creates challenges but also opens doors for freight companies specialising in defence, aerospace, and government logistics. To stay ahead, you need people who can confidently handle sensitive cargo, complex regulations, and shifting routes.

At Freight Appointments, we find the talent that makes a real difference to your operations—professionals who know the stakes and have the expertise to deliver.

Let’s build the team that keeps your business moving forward. Contact us today.