Trump’s ship rescue won’t prevent global latency shock — Financial expert

A United States-led effort announced by President Donald Trump to free stranded vessels in the Strait of Hormuz may ease immediate congestion, but it will not prevent a wider disruption to global supply chains, financial expert Nigel Green has warned.

The initiative, tagged “Project Freedom,” was unveiled late Sunday as part of moves to guide ships out of the critical waterway after weeks of blockage that trapped about 1,000 commercial vessels and tens of thousands of seafarers.

Following the announcement, oil markets reacted with volatility, as Brent crude and US benchmark prices edged lower on expectations that shipping activity could soon resume.

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However, Green, CEO of deVere Group, said the situation goes beyond short-term price movements, warning of a deeper “latency shock” likely to affect global trade.

Nigel Green says: “Markets are reacting to the idea that ships will start moving again, but the system doesn’t reset instantly. There’s a real latency shock to consider.

“Convoys have to be coordinated, routes are being altered, inspections are increasing. All of this adds time, and time is now the pressure point in global trade.

“The real disruption goes beyond the oil price. It sits in how long everything takes to move from one point to another.”

The Strait of Hormuz, which historically handles about a fifth of the world’s energy supply, remains a key chokepoint, meaning any prolonged disruption continues to place pressure on global markets.

While escorted shipping corridors may help reduce the immediate backlog, Green noted they also introduce additional layers of operational complexity for shipping firms already dealing with tighter schedules, increased security checks, and rising insurance costs.

Nigel Green continues: “Every additional hour at sea or waiting clearance feeds into cost structures across industries.

“Manufacturers are dealing with delayed inputs. Retailers are facing longer delivery timelines. Energy buyers are navigating uncertainty around supply reliability.

“These are not isolated effects. They ripple through the global economy and reinforce inflationary pressure at multiple levels.”

Despite coordinated efforts to move vessels, analysts expect the backlog to take time to clear, with supply chains; long optimised for speed and efficiency,

now facing unpredictable delays.

Nigel Green says: “Businesses have spent years optimising for speed and cost efficiency. What they are facing now is unpredictability.

“This shift matters. It forces companies to hold more inventory, reassess sourcing strategies, and absorb higher operational costs.

“All of this feeds into pricing, and ultimately into the broader inflation picture.”

So far, markets have taken a relatively measured stance, with easing oil prices reflecting expectations of resumed movement. Still, Green cautioned that focusing solely on headline prices could overlook broader structural challenges.

Nigel Green adds: “The focus on headline oil prices risks missing the broader story.

“The cost of moving goods is rising because the system itself has slowed down. Latency is becoming embedded, and that changes how global trade functions.

“Investors need to look beyond immediate price moves and consider the second-order effects that will play out over time.”

As diplomatic efforts continue alongside military-backed operations to restore shipping flows, uncertainty remains over how quickly normalcy can return.

Nigel Green concludes: “Global supply chains are under strain in ways that are not immediately visible in market prices.

“The assumption of seamless movement has been challenged, and the consequences will continue to unfold across economies and industries.”