Logistics Matters with DC VELOCITY
Guest: Ian Massey of S-RM on the Ongoing Supply Chain Impacts From the War Against Iran; What Is “Port Proximate” And Why Is It Changing?; Work Remains to Optimize Pharmaceutical Supply Chains.
Why It Matters
Understanding the geopolitical risks from the Iran conflict helps businesses anticipate cost spikes and supply disruptions across multiple sectors. The move away from costly port‑adjacent warehouses signals a broader re‑evaluation of logistics strategies, while the nascent use of AI in pharma highlights emerging opportunities for efficiency gains in a critical industry.
Key Takeaways
- •Iran war disrupts oil, LNG, and Gulf logistics routes.
- •Companies urged to adopt scenario planning for escalation, stalemate, de‑escalation.
- •Port‑proximate warehouses lose market share; inland hubs grow faster.
- •Industrial rents near ports 33% above national average.
- •Pharma supply chains use AI experimentally; low confidence predicting disruptions.
Pulse Analysis
The ongoing conflict in Iran is reshaping global supply chains, especially for energy and logistics. A fifth of world oil exports and a large share of LNG flow through the Strait of Hormuz, so any disruption reverberates across petrochemicals, plastics, fertiliser and even food production. Multinationals face heightened uncertainty, prompting executives to adopt three‑scenario planning: full escalation, protracted low‑intensity fighting, or diplomatic de‑escalation. This framework helps firms balance duty‑of‑care for staff, protect assets, and maintain resilience amid fluid geopolitical risk.
Meanwhile, U.S. industrial real‑estate trends reveal a sharp pivot away from traditional port‑proximate sites. Cushman & Wakefield reports that only 19% of total industrial net absorption occurred in port‑adjacent markets in 2025—the lowest in 15 years—while inland logistics hubs captured a 21% growth rate. Rents near ports remain 33% above the national average, driven by a 65% increase since 2019, prompting large distributors to seek cheaper, spacious facilities farther inland. The shift reflects a broader strategy to balance speed‑to‑market with cost efficiency and access to labor pools.
In the pharmaceutical sector, artificial intelligence is still in its infancy. A recent WBR Insights survey of 100 European supply‑chain leaders shows 36% using AI in isolated pilots and 40% planning broader adoption, yet 65% lack confidence in AI’s ability to predict disruptions. Early successes appear in demand planning, inventory optimization, and logistics orchestration, but translating these gains into enterprise‑wide impact remains a challenge. Companies that achieve higher digital connectivity report up to 15% lower logistics costs, 35% reduced inventory, and 65% better service levels, underscoring the potential payoff once AI maturity improves.
Episode Description
Our guest on this week's episode is Ian Massey, Head of Corporate Intelligence, EMEA, S-RM. As the war against Iran continues, supply chains feel the effects – whether that is oil tankers stuck in the Strait of Hormuz, disruptions to air cargo flying through the Middle East, or many other impacts that conflicts of this time bring. Victoria Kickham talks with this week’s guest about these effects and potential risk scenarios.
For years upon years, importers have rented warehouse space near ports, because of course, ships would bring freight to US shores, and they needed a convenient space to store those goods. However, as Ben Ames reports, that conventional wisdom now seems to be shifting. The industrial real estate firm Cushman & Wakefield says that for the year of 2025, “port-proximate” industrial markets captured that segment's lowest market share in the past 15 years. We explain where these distributors are going instead and what is driving those shifts in location.
Pharmaceutical companies are racing to deploy artificial intelligence (AI) across their supply chains, but the technology is not yet making a widespread impact., Victoria Kickham reports. This is according to industry research released this week from WBR Insights. The researchers surveyed 100 heads of supply chain from across Europe to identify key challenges and emerging solutions facing the industry. And they found that pharmaceutical supply chains are “performing but not yet optimized”—and that there is work to be done when it comes to making the most of AI investments.
Supply Chain Xchange also offers a podcast series called Supply Chain in the Fast Lane. It is co-produced with the Council of Supply Chain Management Professionals. Go to your favorite podcast platform to subscribe and to listen to past and future episodes. The podcast is also available at www.thescxchange.com.
Articles and resources mentioned in this episode:
S-RM
Warehouse leasers seek cheaper properties away from ports
Report: 65% of pharmaceutical supply chain leaders lack confidence in AI
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Visit Supply Chain Xchange
Listen to CSCMP and Supply Chain Xchange's Supply Chain in the Fast Lane podcast
Send feedback about this podcast to podcast@agilebme.com
This podcast episode is sponsored by: Storage Solutions
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