Weather the storm

Weather the storm

In the early 2000s, global supply chains operated with a relative ease that now feels almost quaint. Containers were available, shipping rates were stable, and weather was generally predictable. For wine producers, importers and distributors, these were the halcyon days.



Today, however, logistics increasingly resembles a high-stakes puzzle. A perfect storm of inflation, material shortages and congestion is placing immense pressure on firms in the international marketplace.

"The global container shortage and ongoing disruptions in international shipping have significantly affected wine imports to the UK, particularly from Southern Hemisphere producers like Chile, Australia, and South Africa," explains Karim Edrihen, branch manager of Beverage Logistics at Hellmann.

"Increased freight costs and longer transit times have created both financial and logistical challenges for UK importers, with many facing delays, stock shortages, and higher per-bottle shipping costs."

Meanwhile, vessel rerouting - such as avoiding the Suez Canal - has "further contributed to supply chain uncertainty", he says. As a result, UK merchants have been forced to increase their inventory buffers, transitioning to a model of bulk shipments – or local bottling – as a mitigation strategy.

According to Edrihen, one of the net beneficiaries of this shift are EU-based wineries, which offer "less risk and obviously quicker shipping times." Nevertheless, growing unpredictability and stubbourn inflation have triggered a strategic rethink among UK importers - and New World producers risk losing ground.

Climate shifts

Material shortages and geopolitical disruption, however, are only part of the challenge in 2025. David Hogg, sales director at London City Bond, notes that rising temperatures are having a significant impact on fine wine logistics.

He says: "Although temperature-controlled vehicles can alleviate the problem, they are more expensive and not always easy to get hold of. Delays in the receipt of inbound goods then simply put added pressure on our warehouses to offload, check, locate within the warehouse, land into a customer's account all aimed at making sure they are available for sale as soon as possible."



Liv-ex's head of operations, Dane Sunderland, also raises the lingering issue of Trump tariffs.

"In recent months there is a general uncertainty present, particularly around US trade and tariffs which can put a strain on logistics operations," he reveals.

"Demand requirements for logistics services have fluctuated significantly and have required continual review and adaptation. Even as we approach the July end point of the current tariff arrangement there is still uncertainty around what this may look like going forward and therefore effective planning is challenged."

That said, Sunderland adds that freight costs – while still a consideration - "have settled significantly compared to previous years."

He continues: "Liv-ex removes many of the barriers that exist in international trade by taking on the administrative and logistical burdens that exist in dealing with foreign counterparts. Meanwhile, the further use of technology in fine wine logistics is going to be very interesting over the next few years. Many of the processes within the wine supply chain are still very manual and I am excited to see what can be done in improving the efficiency of the end-to-end supply chain."

The technology pour

As Sunderland underlines, technological innovation is playing a vital role in addressing some of the more intractable issues facing the industry today – streamlining processes and improving cost-effectiveness. From smart logistics to AI-driven inventory management, R&D is paving the way toward a more resilient, agile future for global distribution.

"Digitalisation and visibility are becoming increasingly important by the day," says Edrihen.

"Smart Solutions is a suite of applications and tools designed to meet all air and sea customer needs related to tracking and shipment visibility. Depending on the required level of control, we offer tailored solutions that can be deployed globally. We also offer live GPS tracking for our vehicles, upon request. This feature is especially useful for high-value en primeur shipments, offering customers an added layer of reassurance and peace of mind."



According to key stakeholders, the path back toward equilibrium has been helped by the development of new shipping hubs, offering viable alternatives to the congestion at major ports.

Ongoing delays at London Gateway, for example, have prompted more wine shipments to be routed through Southampton and Liverpool, which are emerging as faster and more reliable options.

"For deliveries to the North of England, some importers are choosing to ship New World wines via South Shields, transhipping through Rotterdam to bypass UK ports altogether," Edrihen adds.

More encouragingly, Liv-ex reports that after some early friction, "most businesses have come to grips with the general process of moving wine between the UK and EU" in the post-Brexit environment.

"EU wineries initially struggled to adapt to the new processes," agrees Edrihen. "Following Brexit, we tracked the implementation of new policies internally, identifying process redundancies both within our own operations and in collaboration with customers. Overall, the new procedures are now well-established and consistently applied across the board."

Once bitten

Yet there is no room for complacency. The geopolitical and UK economic outlook remains extremely volatile. Further regulatory expansion - including the new Deposit Return Scheme (DRS), earmarked for commencement in 2027 - will require UK producers to take on additional responsibilities regarding the recycling of eligible containers, adding to their workload.

"The administrative burden has increased substantially. The volume and complexity of documentation required for customs clearance and compliance with international regulations have grown, making the export process more time-consuming," observes Alberto Fusi, CEO of Tuscan winery Arillo in Terrabianca.

"These issues have required us to be more proactive and meticulous in our planning and coordination with logistics partners."

In 2020, the industry was blindsided as the pandemic upended global supply chains and sent chaos rippling through the system. Thankfully, stakeholders are far better equipped – thanks to technological innovation and improved analytics – to navigate turbulence. The halcyon days may be over, but a more sophisticated era in wine logistics is taking shape today.