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Volatility Takes Root as Permanent Supply Chain Feature

Supply chain volatility has hardened into a lasting structural condition rather than a temporary disruption, according to the 2026 State of Logistics Report released Tuesday by Kearney and Penske Logistics for the Council of Supply Chain Management Professionals.

Five persistent forces are reshaping the logistics landscape: asymmetrical global growth, tightening financial conditions, geoeconomic realignment, labor and productivity constraints, and energy price volatility. Growth remains uneven globally, with the United States, India and Southeast Asia outperforming Europe and Gulf economies, which have contracted.

Geopolitical pressures including Strait of Hormuz disruptions and frequent tariff shifts continue straining trade lanes. Traditional performance levers like demand recovery and network scale have become unreliable. To sustain returns amid persistent uncertainty, carriers and shippers must prioritize operational resilience through pricing discipline and investments in digital tools and warehouse automation.