Are Shippers Optimising Freight Rates at the Expense of Supply Chain Resilience?

The maritime and logistics industry's relentless pursuit of freight rate optimisation may be coming at a significant cost to overall supply chain performance, according to a prominent industry voice. Dr Raymon Krishnan, president of Singapore's Logistics & Supply Chain Management Society, has penned a pointed commentary for Splash247 questioning whether the sector has lost sight of the bigger picture in its drive to secure the lowest possible freight costs. Writing for the publication, Dr Krishnan argues that while the logistics industry has demonstrated a consistent capacity to adapt — navigating the upheavals of globalisation, the digital revolution, and the extraordinary disruptions of the Covid-19 pandemic — the current fixation on rate optimisation risks creating structural vulnerabilities across global supply chains. The commentary arrives at a critical juncture for the industry. Following years of extreme freight rate volatility — from the historic highs of the pandemic era to the sharp corrections that followed — shippers and logistics managers have understandably placed cost control at the centre of their procurement strategies. However, Dr Krishnan's analysis suggests this approach may be short-sighted. The core concern is that by treating freight as a commodity to be minimised rather than a strategic lever within a broader supply chain architecture, businesses may be sacrificing reliability, flexibility, and long-term efficiency. In an era defined by geopolitical uncertainty, climate-related disruptions, and shifting trade patterns, supply chain resilience has arguably never been more valuable. Singapore, as one of the world's premier maritime and logistics hubs, sits at the intersection of these competing pressures. The city-state's logistics community has long championed a sophisticated, systems-level view of supply chain management — making Dr Krishnan's platform a particularly relevant one from which to raise these concerns. The commentary is likely to resonate with supply chain professionals who have witnessed first-hand how cost-driven decisions can cascade into service failures, inventory shortfalls, and reputational damage when disruptions materialise. As the industry continues to recalibrate following several years of turbulence, Dr Krishnan's intervention serves as a timely reminder that freight rate optimisation, while commercially important, should not be pursued in isolation from the broader strategic imperatives of supply chain design and resilience planning.