In the world of logistics, "quiet" agreements can sometimes make the loudest statement.

As the world was engrossed in big pictures recently, there was a major development that happened in the backdrop: “the operationalization of the Reciprocal Exchange of Logistics Agreement (RELOS) between India and Russia.” Initially, this seems like a strictly military deal: an understanding between two countries to fuel and maintain their ships in each other’s ports.

But as a representative of the supply chain & logistics security industry, RELOS is a harbinger of something much bigger on the horizon. RELOS is a precursor to trade lanes that will expand and a vision for how goods will flow from Eurasia and into the Indian Ocean.

What all this means to the future of logistics and why you need to care will become clear below.

What is RELOS? (Simplified Version)

Remove the geopolitical speak, and what RELOS actually represents is a “global pit-stop deal." It provides the Indian fleet with access to the Russian ports in the Arctic and Far Eastern regions for refueling and maintenance facilities. In exchange, the Russians get the same things at Indian ports.

For the logistics planner, this translates to one word: Extended Range. This will improve downtime, allowing the ship to sail over long distances without having to wait for red tape to clear for fuel or repairs.

The Golden Nugget: The Arctic and the Northern Sea Route (NSR)

The most intriguing aspect this covenant has nothing to do with the present and everything to do with the future. By securing a link to ports such as Vladivostok, this RELOS agreement is a first step towards realizing the potential for using the Northern Sea Route and the Chennai-Vladivostok Maritime Corridor.

Why is this relevant? It is a relevant issue because, today, commodities shipped from either India/Southeast Asia destined for Europe are very dependent on the Suez Canal. The Northern Sea Route could offer a possible shortcut via the Arctic.

Nonetheless, the Arctic Logistics poses a challenge in itself. Such routes are remote and inhospitable. The moment high-value cargo, including electronics or gold, is passing through these new routes, the typical model called “seal and forget” will not work. The route will be shorter, with stronger isolation.

New Routes, New Risks: The Role of Smart Security

It is at this point that the dialogue moves from political treaties to logistics.

Opening a new trade route means that a piece of paper is not enough; it needs a Strategic Supply Chain approach. In cases where shipments transit through non-traditional trade routes, whether this route is across the ice-cold zones in the Arctic or through the long route in the International North-South Transport Corridor route, what matter’s most is visibility.

At Ikinglobal, we examine these changes because there are new variables when new routes become available:

• Remote Transit: Suppose a container is left behind or compromised at a remote transit point; how does one know about it right away?
• Harsh Conditions: Are your security seals resistant to temperature variations on the Arctic route?
• Cargo Integrity: Today, with valuable cargo routed past conventional hubs, digital authentication is the only means of establishing trust between the shipper and receiver of Cargo.

The RELOS agreement is a start, but the smart locks and location tracking are what will keep the door open.

The Business Lesson: Diversify and Digitize

What all logistics managers and business leaders need to understand is that Friend-Shoring is definitely real. “Governments are actively developing redundant networks so they are not hostage to any point of vulnerability,” points out Duncan Smith of Juniper Networks.

Your business should do the same:

• Diversify Routes: Avoid using a single logistics route. Analyze how these new regions might provide better or cheaper options in the next 5 years.
  
  
• Digitize Security: With expanding supply chains into new geographies like the UAE-India trade lane or Russian-India trade lane, you simply cannot implement manual security verifications. What you need is an intelligent bolt seal that will provide you feedback wherever your shipment is.

Conclusion

“This India-Russia pact regarding logistics can be more than a political victory—it also represents a signpost indicating the redrawing of the global trade map.

With the opening of such "superhighways," the key winners here are going to be those firms prepared and equipped to travel on them safely.” Are your supply chains ready for the new map?

Ikinglobal understands that to protect all shipments on any route, old or new, our clients need the smart security solutions that Ikinglobal provides with our smart locks, allowing you to always be in control no matter where you are shipping, from Dubai to Vladivostok or anywhere else in the world.