Border Delays of Industrial Goods Stall Global Infrastructure
Disruption in industrial supply chains is hampering global infrastructure development, according to a new report from DP World.
The report, based on a global survey, finds that 94% of industrial cargo owners face customs or border delays, slowing the movement of essential machinery, steel and equipment to construction and energy projects worldwide.
The study highlights a sector struggling to meet the global population’s needs, threatening economic growth, climate security and quality of life. Industrial goods supply chains – which power everything from roads and bridges to factories and renewable energy - are now operating with near-constant disruption.
This is stalling critical progress at a time when the world faces a $15 trillion infrastructure gap by 2040, says the report.
In disrupted years, 55% of cargo owners lose over a month of operational time, and product lead times extend by double-digit percentages.
“We cannot close the global infrastructure gap if industrial supply chains continue to operate in a state of chronic disruption," said Indy Obhi, global vice president – Industrial Vertical, DP World, in a statement. "When machinery or materials are stuck at a border, entire construction and energy projects slow down. Reliability is no longer a support function; it is a prerequisite for growth.
“The sector is strengthening buffers where it can, but the moving parts, like multimodal routes and border processes, remain fragile. The future of infrastructure delivery depends on flexible logistics, deeper visibility, and digital tools that help companies anticipate disruption rather than react to it.”
Border Delays
Ninety-one percent report border delays and container shortages, while 88% report climate-related disruptions pushing projects beyond milestone windows and commissioning dates.
The effect on project performance is immediate. Each extra day at a port or border has a double impact – raising logistics costs and inflating the cost of people and assets waiting on-site. From renewable energy installations to major transport corridors, delays slow national development and increase the cost of delivering the infrastructure the global economy relies on.
In response, the sector is shifting toward predictive capability and upstream control, with 79% of businesses expecting to increase logistics spending over the next three years. Crucially, data from the report shows that investment in inbound logistics and production logistics technology can reduce disruption by 60%.
“Industrial goods are where disruption becomes visible fastest, and those who need infrastructure improvement the most will suffer," said. Beat Simon, COO – Logistics, DP World, in a statement. "The companies that build proactive resilience, flexible routing and integrated upstream logistics will be the ones safeguarding quality of life for the next generation.”
As governments invest in renewable energy, advanced manufacturing, transport corridors and digital infrastructure, their progress now depends on whether industrial supply chains can deliver reliably." Closing the infrastructure gap will require a step-change in resilience, driven by businesses’ choice of logistics providers and investment in the networks that support them." the report concludes.