Post-Davos: chokepoints and great-power politics hitting supply chains
Key Questions
What supply chain chokepoints were highlighted after Davos?
Elevated risks at the Red Sea, Suez Canal, Strait of Hormuz, and Taiwan-related routes are causing shipping rerouting, higher freight costs, and marine-insurance premiums, leading to upstream shortages in pharma and inputs.
What did the U.S. Commerce Department state about globalization at the WEF?
A U.S. Commerce Department statement framed globalization as 'failed,' boosting policy momentum toward reshoring and resilience subsidies as reported on March 18, 2026.
How is the EU addressing dependencies on China in trade?
The EU trade chief called for a dedicated instrument to unwind China dependencies, aiming to reduce vulnerabilities in critical supply chains through targeted policy measures.
Davos follow-ups highlighted elevated risks at the Red Sea, Suez and Strait of Hormuz and Taiwan-related vulnerabilities, producing shipping rerouting, higher freight and marine-insurance premia and upstream shortages in pharma/inputs. A U.S. Commerce Department statement at WEF framing globalization as 'failed' (reported 2026-03-18) has amplified policy momentum toward reshoring and resilience subsidies.