ASEAN Firms Build Supply Chain Resilience Amid Trade Risk
Operators shipping through Southeast Asia should add backup routes and review logistics contracts for flexibility.
Updated on Nov. 5, 2026 in International Trade
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Supply chain shocks have piled up since 2020, and companies across Southeast Asia are being urged to build more robust logistics networks. Toll Group executive chairman Thomas Knudsen said firms must build robust supply chains, while ASEAN executives citing geo-economic actions as a top trade concern rose from 49% to 57%, according to Standard Chartered's Future of Trade report.
Why it matters
Shocks including the COVID pandemic, Russia's 2022 invasion of Ukraine, Trump's 2025 tariffs and the end of de minimis, and the U.S. war with Iran have disrupted shipping and sourcing decisions for regional businesses. Tariffs have also pushed Chinese companies to seek new markets and manufacturing hubs, raising the stakes for operators relying on established routes.
Standard Chartered's survey of 2,100 senior corporate leaders across 27 markets found ASEAN executives citing geo-economic actions as a top trade concern rising from 49% to 57% over the next three to five years. Only about 22% of ASEAN's trade occurs within the bloc, compared with roughly 60% for the European Union.
The players
Toll Group
Toll Group, founded in 1888 and owned by Japan Post, runs freight forwarding and contract logistics across Asia.
Standard Chartered
Standard Chartered is a global bank with a major ASEAN leadership presence in Singapore, which published the Future of Trade survey.
The details
Robustness in practice means building spare capacity, including backup routes by truck and rail alongside ocean and air freight. Sea-air combinations are one option, flying cargo part of the way and shipping it the rest. Because so little ASEAN trade stays inside the bloc, companies relying on external routes face exposure when those routes are disrupted.
Timeline
Since 2020: supply chain shocks begin with the COVID pandemic.
2022: Russia's invasion of Ukraine adds another shock.
2025: Trump's tariffs and the end of de minimis arrive as further disruptions.
1992: The ASEAN Free Trade Area was established, eliminating intra-bloc tariffs.
Market Landscape
The Established ASEAN Free Trade Area, set up in 1992 to eliminate intra-bloc tariffs, has not translated into the internal trade share seen in the European Union, where roughly 60% of trade stays within the bloc. ASEAN's 11 economies, combined worth $4.5 trillion and growing at 4.5% a year per the IMF, remain heavily dependent on external trade routes.
Operators relying on single-route ocean or air freight should review contingency options such as truck and rail backups and sea-air combinations. Procurement and logistics teams should expect continued pressure from geo-economic trade actions over the next three to five years.
The takeaway
Companies should treat supply chain resilience as an operating priority rather than a contingency plan. Track geo-economic trade developments and review logistics contracts for flexibility before the next disruption arrives.
Further reading
For broader context on how these pressures reshape cross-border commerce, explore International Trade.
Source note: This article includes information reported by Fortune.
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