Due to the ongoing conflict, the global lubricant supply chain has seen a number of disruptions to their day-to-day operations. The Lubricant Expo Middle East team have reached out to our esteemed advisory board to get their take on the current situation and how best to manage it. We are very pleased to present an interview with Dr Hassan Jadarat the Managing Partner at Addisol.
What challenges do the lubricant supply chain face in light of the current disruptions in the Middle East?
The main challenges are uncertainty in vessel schedules, port congestion, route changes, higher freight and insurance costs, limited visibility on delivery timelines, and difficulty maintaining stable inventory levels.
These disruptions affect not only imported additives and base oils, but also local production planning, customer commitments, and working capital management.
The greatest challenge is not only cost, but the lack of predictability.
What advice would you give to the lubricant sector to help counteract these challenges?
The sector should focus on proactive planning rather than reactive correction.
This includes building buffer stock for critical materials, diversifying supply routes and origins, securing closer communication with principals and logistics providers, and maintaining transparent coordination with customers.
It is also important to review forecasts more frequently and align purchasing decisions with actual lifting patterns to reduce both shortages and overstocking.
What can be learned from the current disruptions to help strengthen the lubricant supply chain in future?
The main lesson is that resilience must be built into the supply chain in advance.
Companies need stronger contingency planning, more flexible sourcing arrangements, better regional inventory positioning, and faster decision-making processes.
The businesses that perform best during disruption are those with strong relationships, clear communication, disciplined inventory management, and the ability to adapt quickly without compromising customer service.