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Tackling Europe’s driver shortage

Posted on by David Priestman

Europe is facing a severe truck driver shortage – around 230,000 driver roles remain unfilled, and this gap could grow to as many as 745,000 vacancies in the coming years. This challenge, driven by an aging workforce and low numbers of recruits, threatens the smooth operation of supply chains across the continent. Many large transport companies, like Girteka, have turned to recruiting drivers from outside the EU. However, taking into consideration the needs and requirements of skilled drivers, driving tests are becoming increasingly important.

Driving tests: a key to securing skilled drivers

Comprehensive driving tests assessments are one effective way to ensure that only well-qualified drivers join the workforce. By putting drivers behind the wheel under controlled conditions in their own country, companies can verify that candidates meet the required standards in safety and driving skills.

Driving tests evaluations serve several essential functions. They allow companies to assess how drivers handle real-world conditions, confirm that drivers follow safe practices and check that drivers are comfortable with the digital systems integrated into modern trucks.

Today’s requirements for truck drivers in Europe

Today’s professional truck drivers in the EU must meet specific requirements, including:

· License requirements: Drivers need a C, C1, CE, or C1E license. For example, a C1 license is for lighter trucks (up to 7,500 kg), while a C license is for heavier trucks.

· Code 95: After initial qualification, drivers earn Code 95, which must be renewed every five years through refresher training.

· Mandatory training: EU Directive 2003/59/EC requires a standard level of training, including practical assessments and driving tests, to improve road safety.

· Regulatory compliance: Drivers must follow strict rules regarding driving hours, rest periods, specified in Mobility Package.

Similar systems exist outside Europe. In the United States, drivers must pass a Commercial Driver’s License (CDL) test that covers pre-trip inspections, vehicle control, and on-road evaluations. While the U.S. system focuses on a one-time licensing test, Europe emphasizes continuous training and periodic driving tests assessments.

Industry leaders in driver training and driving tests

Several companies have set the standard by incorporating comprehensive driving tests assessments into their recruitment and training processes.

Girteka’s Driving Academy

Girteka, a market leader in road transport, has established its own Drivers’ Academy with centers in Lithuania and Poland and recruitment branches outside the EU. New drivers – especially those outside the EU – must complete a series of driving tests and practical assessments before coming to Europe. Arystan, a recent recruit from Kazakhstan, explained that “The driving test at Girteka’s academy was eye-opening. It gave me a clear idea of European road conditions and helped build the confidence I needed before starting my career here.” Another professional driver, Kadyr from Kyrgyzstan, noted that the thorough approach prepared him well for working in Europe by showing exactly what was expected in terms of safety and skills.

XPO Logistics’ Driver Excellence Academy

XPO Logistics has launched a Driver Excellence Academy across multiple sites in the UK. Their program features a staged training plan, supported by qualified instructors, and includes a four-week buddying process after the candidate passes their test. This structured approach not only improves driving skills but also helps address the driver shortage by building a pipeline of well-trained, confident drivers.

DHL Supply Chain’s Driving Ambition Program

DHL Supply Chain offers a “Driving Ambition” program to attract new talent. The program provides comprehensive training for candidates to obtain LGV licenses covering rigid and articulated trucks. With training centers across the UK, DHL focuses on creating long-term careers in the industry.

Why driving tests matter

Driving tests assessments are not just about verifying a candidate’s driving skills – they are a critical tool for ensuring a steady flow of professional drivers and stabilizing Europe’s supply chains. With conditions closer to real ones, these tests help companies identify any potential issues early, from handling adverse weather to mastering digital tools like tachographs and telematics. As Oksana Karpovičienė, Head of HR Expansion Department at Girteka, explains, “Driving tests assessments are crucial in securing quality drivers who meet European standards. This rigorous approach not only boosts driver confidence and competence but also reduces risks on the road, leading to improved safety and fuel efficiency.”

Ultimately, by integrating comprehensive driving tests evaluations into the recruitment and training process, companies can ensure minimum level of skills and further develop a comprehensive upskilling programs to meet demanding quality needs of logistics services in Europe.

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DHL’s Transformative Approach to Supply Chain Strategy

Posted on by David Priestman

DHL Global Forwarding, the ocean and air freight division of DHL Group, has published a white paper on the topic “China Plus X: The New Global Supply Chain”. The document highlights the growing importance of multi-shoring strategies that go beyond the classic “China Plus 1” philosophy and focuses on diversifying production and supplier locations in several countries. The aim is to enable companies to safeguard their supply chains against global disruptions and to strengthen their operational flexibility.

In recent years, geopolitical tensions, trade barriers and events such as the COVID-19 pandemic have highlighted how fragile supply chains can be. The white paper discusses various countries in South East Asia, Southern and Eastern Europe as well as Middle East and South America as strategic alternatives and additions to China, as they offer both infrastructural investment and increasingly trade-friendly regulatory environments.

“The future of global supply chains lies in a flexible, sustainable and diversified structure designed for resilience. DHL Global Forwarding supports companies with a unique global network and local expertise to successfully shape this transformation. With our extensive portfolio of logistics and transportation solutions, we provide customers with the tools they need to realize their Plus X strategy and to focus on long-term stability”, states Niki Frank, CEO DHL Global Forwarding Asia Pacific.

Five essential factors for the successful implementation of Plus X

The white paper outlines five essential criteria which play a crucial role in the selection of suitable production and supply chain locations. A robust transportation infrastructure is paramount, as it encompasses the capacity, quality, and transit times essential for efficient logistics. Countries like Vietnam and Mexico are making significant investments in their transportation networks, which serve as the backbone of their supply chains. Alongside this, a comprehensive analysis of the cost structure is vital; this includes evaluating logistics expenses, labor costs, and the overall return on investment (ROI) associated with relocating production to a specific country. Additionally, the quality of a country’s infrastructure—both digital and physical—plays a crucial role in this assessment. This includes broadband capacity, transportation facilities, and anticipated developments such as new airports and rail lines that will support alternative sourcing strategies. The availability of a skilled workforce is another significant consideration, particularly as countries like India invest in education to prepare their labor force for emerging industries, such as semiconductors. Finally, understanding the regulatory environment is essential. This encompasses taxes, customs, tariffs, and participation in trade agreements, which can significantly impact operational efficiencies and costs. Emerging Plus X countries are actively seeking to establish favorable trade agreements and offer with that increasingly trade-friendly environments to attract foreign investment. In this context, a long-term commitment to these locations is crucial, as establishing a diversified production base often requires substantial upfront investments.

A strong partner for complex supply chains

DHL Global Forwarding offers a comprehensive portfolio of services that help companies to make their supply chains not only efficient, but also future-proof. These include multimodal transportation solutions that combine the advantages of different modes of transport. For example, companies can reduce costs and optimize delivery times by combining ocean and air freight.

In addition, DHL Global Forwarding provides specialized consulting services to help companies analyze and plan their Plus X strategies. This includes the evaluation of transport capacities in potential destination countries, the analysis of regulatory requirements and the optimization of warehouse and distribution networks. Thanks to a global network in over 220 countries and territories and teams with local expertise, DHL can develop customized solutions tailored to the individual needs of companies.

Another highlight is DHL Global Forwarding’s ability to use innovative technologies to improve transparency and efficiency. Through digital platforms such as myDHLi, customers gain real-time insights into their supply chains, seamlessly track shipments and manage processes more efficiently. This combination of technology and expertise makes DHL an indispensable partner for companies looking to diversify their supply chains while making them more resilient.

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DHL Acquires Inmar Supply Chain Solutions

Posted on by David Priestman

DHL Supply Chain has announced the acquisition of Inmar Supply Chain Solutions, a division of Inmar Intelligence and a leading returns solutions provider for the retail e-commerce industry. The strategic acquisition will make DHL Supply Chain the largest provider of reverse logistics solutions in North America.

The acquisition will result in 14 return centers and around 800 associates joining the DHL Supply Chain business expanding the company’s North American footprint which currently stands at over 520 warehouses supported by 52,000 associates. Additionally, DHL Supply Chain will now strengthen its returns capabilities to include product remarketing, recall management, and supply chain performance analytics. Inmar Intelligence will retain its pharmaceutical reverse distribution business.

In the light of a rapidly growing e-commerce market and changing consumer behavior, returns are an increasingly important touchpoint for retail customers, both in store and online. These solutions will expand the value-added services available to DHL customers and create a more strategic delivery of holistic solutions for their most complex supply chain needs.

“DHL Supply Chain’s market-leading logistics expertise and the addition of Inmar’s suite of returns services and its talented workforce will enable us to provide best-in-class logistics services to our industry customers. Together, we will create a returns business in North America that is unmatched in its depth, breadth, capabilities, and talent to fuel long-term growth,” said Oscar de Bok, Global CEO of DHL Supply Chain.

“As companies strive to simplify their supply chain strategies and enhance their operational agility, DHL Supply Chain continues to innovate to provide comprehensive and integrated solutions. This acquisition strengthens our existing capabilities, allowing us to offer our customers a single-source solution for their entire supply chain, including the critical and complex area of returns management. This enhances the value we deliver to our customers by streamlining their operations, reducing complexity, and improving their overall supply chain efficiency,” said Patrick Kelleher (pictured), CEO of DHL Supply Chain, North America.

He further added that, “The strategic growth opportunities that the returns market brings will enhance the success of DHL Supply Chain. It also puts us on the right path to support DHL Group’s plan to achieve 50% revenue growth by 2030 compared to 2023 as outlined in our recently announced Strategy 2030.”

“Inmar Intelligence and DHL share a deep commitment to customer-focused innovation. Because of that, we are confident that DHL will build even greater things on top of the Inmar Supply Chain Solutions foundation that we developed over time. As well, we are thrilled that Inmar associates will have an even broader set of supply chain experiences available from which they can continue to learn and develop over time at DHL. For Inmar Intelligence, this deal sets the stage for us to apply an even deeper level of focus and investment into our core businesses that are expanding rapidly,” said Spencer Baird (also pictured), CEO of Inmar Intelligence.

Consumers expect retailers to provide a seamless returns process while retailers are faced with new challenges such as returns abuse and rising operational costs. Thus, the acquisition marks a logical step to foster DHL’s customer centric approach that involves collaboration, expertise, and integration to solve the greatest supply chain challenges.

Enhancing commitment to sustainability

The acquisition of Inmar Supply Chain Solutions will also contribute to DHL’s strategic goal of decarbonizing its business by 2050. In the company’s recently announced Strategy 2030, sustainability is a strategic priority, recognizing its growing role as a key differentiator in the logistics sector. Assisting global customers to become carbon neutral is crucial, and DHL Group aims to achieve this by remaining the frontrunner in low-carbon logistics operations.

At the core of returns management is the need to drive sustainability, and Inmar’s technology-driven reverse logistics solutions are recognized across the industry for reducing cost and eliminating the waste generated from returned consumer goods. Emphasis is placed on recommerce, which has diverted 99% of consumer returns from reaching a landfill; an approach that aligns with DHL’s commitment to make customers’ supply chains more sustainable.

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Fully Automated Small-parts Fulfilment Centre in CEE

Posted on by David Priestman

DHL Supply Chain announces the opening of its first warehouse fulfilment centre in Poland equipped with the fully automated small parts AutoStore system. This robotised warehouse in Gorzów Wielkopolski marks the first deployment of the AutoStore system by the global leader in contract logistics in the Centrale and Eastern Europe region. The Automated Storage and Retrieval System (ASRS) has been implemented by robotics specialist Element Logic, one of the world’s largest AutoStore distributors. This fully automated robot picking system will strengthen Poland’s position in the European e-commerce supply chain.

A new dimension of logistics efficiency

AutoStore is a very compact automated storage and retrieval system that enables optimized space-saving storage of small products and fully automated picking of items. The AutoStore in Gorzów Wielkopolski uses a fleet of 25 robots and 33 000 bins to move products around the warehouse. The solution significantly improves inventory management of hundreds of thousands of different products. The system uses aluminium frame structures, in which each product is placed in a special container called a “bin” and is stored within the structure of the warehouse. The robots support staff in the order picking process by independently locating the required bins (containers), picking them and transporting them to the so-called Port (workstation). This synergy between humans and technology enables faster order completion and delivery to customers.

“We are pleased to implement such a groundbreaking technological solution in our logistics network in Poland. AutoStore has demonstrated significant benefits internationally, especially for e-commerce providers needing high storage density and rapid order processing. With nine AutoStore systems already in operation and three more under construction, DHL Supply Chain is one of the leading users of this technology globally. Our experience shows it is a highly profitable investment, addressing key industry challenges such as labour costs, rising warehouse space expenses, and environmental concerns. This facility marks another step in DHL Group’s global strategy of scaling our innovative, efficient logistics solutions,” says Hendrik Venter, CEO EMEA DHL Supply Chain.

Cooperation with Element Logic

“The AutoStore solution is crucial for companies seeking to optimise their warehouse processes. We are delighted to have collaborated with DHL Supply Chain on this regionally groundbreaking project,” emphasised Anna Wisniewska, Managing Director of Element Logic, the system provider for the facility located at Mosiężna 3 in Gorzów Wielkopolski.

The benefits of the system:
• Storage Density: The vertical structure and dense bin storage allow the warehouse to hold more goods in less space.
• Operational efficiency: Automation reduces order-picking time and increases warehouse throughput.
• Flexibility: The modular design of the system allows for easy expansion as the needs grow.
• Improving work ergonomics: Automation relieves employees from heavy physical tasks, increasing safety and comfort.

Poland Strengthens Role as Key Supply Chain Hub

Poland has solidified its position as a critical link in the supply chain for the e-commerce sector across Central, Eastern, and Northern Europe, according to recent industry reports. Strategic investments in advanced logistics technologies, such as the AutoStore system, are driving Poland’s logistics centres to new levels of international competitiveness. With its prime location, skilled workforce, and expanding infrastructure, Poland is increasingly attracting global businesses seeking efficient and scalable logistics solutions. These advancements are enabling Polish facilities to meet growing demands for speed, flexibility, and sustainability, reinforcing Poland’s role as a logistics leader in the European market.

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DHL eCommerce Announces New Management

Posted on by David Priestman

DHL eCommerce UK has made two new appointments to its management team, drawing on experience from the retail industry to further align DHL’s services to the evolving eCommerce market.

Julian Harrison joins as CIO, to deliver a technology and data-first strategy to support growth across all areas of the business. Julian has spent 12 years in retail and FMCG businesses including senior tech roles at ASOS and Marks and Spencer. He also held the role of Head of Technology, Fulfilment and Enterprise at Lovehoney where he was responsible for all core operational technology systems.

Working in close collaboration with the IT function, Laurence Sugars takes on the role of VP of Product and Strategy. Laurence joins from Marks and Spencer where he was Senior Head of Product for Food, and prior to that held senior roles at FarFetch and Tesco. He will be responsible for expanding the services DHL offers to consumers and retailers including features within the DHL eCommerce app as well as the Out of Home network.

Both will report to Stuart Hill, CEO, DHL eCommerce, who said “We’ve got significant growth plans so I’m delighted to expand an already strong management team with people who share our ambition and vision for the business and who bring deep retail expertise. Julian and Laurence give us real balance as a board and will enable us to evolve the eCommerce proposition in line with the changing needs of both retailers and shoppers.” 

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New Logistics Contract for Homeware Ecommerce

Posted on by David Priestman

Online Home Shop (OHS), one of the UK’s fastest growing e-commerce brands in the homeware sector, has announced a strategic partnership with DHL Supply Chain, one of the world’s leading logistics providers.

This partnership will leverage DHL’s Fulfilment Network – which offers on-demand fulfilment services for small and medium sized e-commerce businesses – to optimise Online Home Shop’s supply chain and meet increasing customer demand. Through this collaboration, DHL Supply Chain will manage warehousing, inventory management, and order fulfilment, ensuring exceptional service for customers across the UK from the point of order.

A family-owned business based in Greater Manchester, OHS continues to increase sales at over 40% per year, with plans in place to continue to accelerate this growth journey. The new partnership with DHL will allow the company to pursue further expansion and scale its operations efficiently. Over recent years, the retailer has increased its range and expanded into furniture. With DHL offering expertise in this area, the partnership will provide shipping solutions for OHS and support further category extension.

Moshe Cohen, CEO of Online Home Shop said: “The business has seen impressive growth over the last few years, and we have ambitious plans for the future, but to achieve these, it is vital for us to have a trusted logistics partner who can support and enhance our operations. DHL will help to provide the advanced infrastructure and expertise we need to ensure our products are delivered quickly and reliably, particularly as we approach Christmas and Peak.”

Natalie Frow, MD Retail of DHL Supply Chain UK&I said: “We are delighted to partner with Online Home Shop, it’s a dynamic and rapidly expanding business at an exciting stage of development. The DHL Fulfilment Network is specifically designed to provide scalable and flexible logistics solutions for growing e-commerce businesses, and we are confident and ready to support Online Home Shop in its nationwide expansion.”

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DHL Relocate Orphan Meat Trade Chimpanzee

Posted on by Will Priestman

DHL Express and Monkey World announced today that they have successfully relocated Chocolat, a female chimpanzee and orphan of the illegal bushmeat trade in the Republic of Congo, to her new long-term home in Monkey World – Ape Rescue Centre, Dorset, UK.

Chocolat’s Rescue from Meat Trade

Chocolat was an infant when her family were hunted and killed. When she was rescued, she was found to have injuries from shotgun pellets that have left her with a paralysed hand and foot on her right side. After spending the past twenty years in Kenya being looked after by her original rescuer, Chocolat has now found a long-term home at Monkey World, which provides specialist care for chimpanzees that have been smuggled from the wild and/or suffered abuse or neglect. To accommodate her needs, her new enclosure has been treated to upgrades such as lower platforms, new nesting areas, and cargo nets, all designed to make Chocolat’s new home as accessible as possible.

Monkey World was established in 1987 to provide a home for chimpanzees who were being abused in the Spanish beach photography trade. Since then, it has continued to rescue monkeys, apes and prosimians who have been used or abused by humans. It has assisted 29 governments to confiscate and rehome the victims of the legal and illegal trade in primates. The 65 acre sanctuary in Dorset is now home to over 230 primates of 25 different species. Chocolat joins 51 other chimpanzees, over 4 groups, living in as natural conditions as possible.

Chocolat’s Journey to the UK

Throughout the journey DHL Express provided Chocolat with VIP service, transporting her in a custom-built crate supported by a team of specialist keepers, aircraft engineers, cargo handlers, security personnel, and pilots. Throughout the trip Chocolat snacked on fresh fruit, nuts and sweet potato.

Her journey, which was carefully planned to reduce the amount of time she spent in transit, began at Nairobi Airport on August 15th, included a brief stop in Bahrain, and concluded with a seven-hour flight to East Midlands Airport, where she arrived on the morning of August 16th. From there, she was transported by road to her new home at Monkey World.

Meat Trade Chimpanzee saved

Her New Home

At her new home Chocolat is being gradually introduced to six other chimpanzees who will become her adopted family. Monkey World is home to chimpanzees rescued from 16 different countries. Chocolat’s new family were rescued from Mexico, Argentina, Cyprus, and Thailand, and also have various disabilities as a result of their tragic backgrounds. She has already made friendly contact with Bryan, the dominant male in her group, reaching out to him and for the first time in over 20 years, touching a fellow chimp. She is getting used to a diet with a larger variety of vegetables than she has been accustomed to. As she learns how to be a chimp again, Chocolat is expected to live out the rest of her days in peace at Monkey World. Chimps like Chocolat have an average life expectancy of 50 years.

Those Who have Helped

Other organisations who have supported and assisted Chocolat’s transfer are African Apes and the William Holden Wildlife Foundation, founded by actress Stefanie Powers in honour of her lifelong love William Holden.

Stefanie Powers, founder of William Holden Wildlife Foundation, said “In my avocation as a wildlife conservationist, I am concerned about the illegal trafficking of primates which continues unabated. It is only through the extraordinary efforts of individuals such as Alison Cronin and her Monkey World team that our fellow primates may be rescued and rehabilitated. We are only a fraction of DNA removed from all our primate brothers and sisters and it is a privilege to play a small part in helping to preserve and protect them. Thanks to the outstanding generosity and support from DHL one very special chimpanzee called Chocolat will have a chance at a fulfilling life. As a friend of Chocolat I am grateful to DHL and Monkey World.”

Dr Alison Cronin MBE, Director at Monkey World, said “We’re so happy to welcome Chocolat. The reason we exist is to offer a nurturing environment for chimpanzees and other primates and to give them back a fraction of what has been taken from them by humans, providing them with a family again. Companionship of their own kind is vital to chimpanzees’ wellbeing, as they are social, intelligent animals. Living in family groups in as natural an environment as possible is the best kind of rehabilitation we can provide to chimpanzees like Chocolat. Her integration will be gradual, but her journey has been very smooth, thanks to the support of DHL and so far, she is settling in well.”

Cain Moodie, EVP Network Operations for DHL Express in Europe, said, “It has been an honour to help Chocolat, the chimp, relocate to her new home at Monkey World. The logistics of transporting her were quite challenging, but our team of experts, in collaboration with Monkey World and her carers in Kenya, took every possible measure to ensure her journey was safe and comfortable. It’s a real pleasure for everyone at DHL when we can use our skills and network to contribute to projects such as this.”

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Sephora Names New Supply Chain Partner

Posted on by David Priestman

Sephora UK has announced a new logistics partnership as part of its growth strategy, selecting DHL Supply Chain as its lead supply chain provider for the next five years. DHL will manage Sephora’s warehousing, eCommerce fulfillment, and UK transport network, supporting the beauty giant’s ambitious retail expansion plans.

Advanced Distribution Hub to Drive Growth

A key feature of this collaboration is the launch of a state-of-the-art omni-channel Distribution Centre (DC) in Coventry. The facility, entirely powered by renewable electricity, is DHL’s first operationally carbon-neutral site in the UK, marking a significant milestone in Sephora’s sustainability journey. The Coventry DC is also one of DHL’s most sustainable sites in Europe, setting new standards in green energy and employee well-being.

Tailored Supply Chain Solutions for Seamless Operations

The new facility integrates sustainable, recycled, and natural materials throughout its design, ensuring a positive working environment for employees while seamlessly supporting Sephora’s omni-channel operations.

Throughout the partnership, Sephora and DHL have worked closely to design a logistics operation that aligns with Sephora’s expansion plans in the UK beauty market. Leveraging DHL’s expertise in the beauty sector, tailored solutions have been developed to optimize efficiency, including the use of pick-assisting robots to manage fluctuating demand while maintaining high quality control. Each order is processed quickly and efficiently with minimal handling to preserve product integrity.

DHL’s eCommerce fulfillment capabilities will enable Sephora to offer later cut-off times, improved product availability, and a more responsive supply chain ready to meet peaks in demand driven by marketing campaigns and influencer promotions.

Sarah Boyd, UK Managing Director for Sephora, expressed her excitement about the partnership: “We are delighted to be working with DHL. The UK is a really important growth market for our business and one with huge potential. The transition to this state-of-the-art facility is a pivotal project that underpins our UK expansion. It is critical to us that we ensure our growth is sustainable, as we reduce our carbon footprint and provide an excellent working environment for our teams in the warehouse.”

Natalie Frow, Managing Director for eCommerce & Retail at DHL Supply Chain, added: “Sephora’s relaunch was a major moment for UK retail, and the iconic brand has made a huge impact in a short space of time. Our team is delighted to be working with a business so open to collaboration and innovation, that shares our values for driving sustainable logistics and being a great place to work. We’re proud to be supporting Sephora on its expansion journey and helping the business shape the UK beauty industry.”

This partnership and the advanced distribution centre highlight Sephora’s strategy to establish itself as a leader in the UK beauty market while prioritizing sustainability and innovative supply chain solutions.

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Specialist Supply Chain Service Contract Renewed

Posted on by David Priestman

Ecolab has reappointed DHL Supply Chain for an additional three years continuing a longstanding 16-year partnership. Nalco Water, an Ecolab company, provides water, hygiene and infection-prevention solutions to a range of industries. The contract will see DHL continue to transport specialist chemicals to Ecolab’s customer base, prioritising both product and staff safety.

DHL is responsible for delivering chemicals for water treatment to thousands of Ecolab customer tanks across the UK. These chemicals are then used in environments including air filtration processes in factories, cleaning and sanitising solutions in hospitals and antimicrobial treatments in food processing plants.

Working within an innovative, circular system, DHL transfers chemicals to Ecolab customer tanks from bespoke reusable containers that drivers reload and return for thorough cleaning before reuse. This process closes the loop on chemical delivery systems, reducing waste to provide a greener service.

In addition to holding ADR qualifications to carry dangerous goods on the road, DHL drivers working on the Ecolab contract undergo 2-3 months of internal training to ensure Zero Defect Deliveries and guarantee secure handling. DHL also uses Microlise telematics to provide a safe and reliable service, enabling real-time tracking for Ecolab deliveries.

Richard Cavanagh, Supply Chain Manager, Ecolab said, “Ensuring safe chemical transfers to our customer sites is a top priority and for nearly 17 years, DHL has delivered a reliable and specialist logistics service that we know we can trust. We are delighted to be continuing this long-standing partnership, helping us to drive efficiencies for our customers while keeping safety and sustainability at the forefront of our operation.”

Paul Mason, VP Operations, Manufacturing Logistics, DHL Supply Chain UK said, “Ecolab is a valued partner in the chemical services sector and the renewal of our contract is a testament to the high-quality service our team continues to deliver. With a wealth of experience and expertise in chemical services, we are continuing to enhance and develop this specialist function of our business with digital and sustainable solutions tailored to the unique needs of our customers.”

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Globalization at Record High, says DHL Report

Posted on by Keith McKinley

DHL and New York University’s Stern School of Business today released the new DHL Global Connectedness Report 2024, the most comprehensive available analysis of globalization’s state and trajectory. It tracks how flows of trade, capital, information, and people move around the world and measures the globalization of 181 countries and territories.

The report reveals that globalization reached a record high in 2022 and remained close to that level in 2023 – despite a series of global shocks over the past decade, including the Covid-19 pandemic, wars in Ukraine and Gaza, the U.S. – China trade conflict, and the UK’s withdrawal from the EU. The evidence strongly rebuts the notion that the growth of global flows has gone into reverse. Trade growth played a crucial role in boosting global connectedness. The share of global output traded internationally was back to a record high level in 2022. After a slowdown in 2023, trade growth is forecast to accelerate in 2024. The globalization of information flows has been especially strong over the past two decades, even though the latest data show a stall in their growth, partly due to less research collaboration between the U.S. and China. Corporate globalization is rising, with companies expanding their international presence and earning more sales abroad.

At the launch of the DHL Global Connectedness Report, John Pearson, CEO DHL Express, said: “The most recent findings of the DHL Global Connectedness Report unequivocally dispel the notion of globalization reversing course. Far from being a mere buzzword, globalization is an influential force that has profoundly reshaped our world and has further great potential. Expanding markets and fostering opportunities empower individuals, businesses, and entire nations to flourish in unique ways. Embracing globalization allows us and our customers to forge a promising future, fostering an increasingly interconnected world, more prosperous for all – and poised for further growth.”

The report affirms the considerable potential to continue growing global flows. It pegs the world’s current level of globalization at only 25%, on a scale from 0% (meaning no flows cross national borders) to 100% (borders and distance have ceased to matter at all).

Ranking of most globalized countries

Singapore achieves the number one spot. The Netherlands and Ireland rank the second and third. 143 countries became more globally connected, while only 38 saw their levels of connectedness decline. Further evidence shows that Europe is the world’s most globally connected region, followed by North America and the Middle East & North Africa.

“Singapore has invested heavily in strengthening our physical and digital connectivity to the world because trade is our lifeblood. We continue to enhance our connectivity and trade links to remain a critical and trusted node in global supply chains, facilitating international trade and flows of capital, information and talent. We look forward to partnering with global companies seeking a launchpad for business growth and supply chain expansion in Asia-Pacific and beyond,” said Ih-Ming Chan, Executive Vice President, Singapore Economic Development Board.

U.S. – China ties diminish, and Russia shows unprecedented decline

The DHL Global Connectedness Report also shows that U.S.-China ties continue to diminish, with the shares of both countries’ flows involving each other decreasing by about one-quarter since 2016. However, both countries remain significantly connected, demonstrating larger flows than almost any other pair of countries. Russia and Europe have decoupled, resulting in Russia facing an unprecedented drop in connectedness, more than twice as much as any previous decline on record among the world’s 20 largest economies. At the same time, the data analysis demonstrates that there is no wider split of the world economy between rival geopolitical blocs.

Globalization has not given way to regionalization

Further, the report shows that predictions of a global shift from globalization to regionalization are not – at least yet – borne out in patterns of international flows. In fact, most international flows are taking place over stable or even longer distances, with a declining share happening inside major geographic regions. In the realm of trade, only North America shows a clear shift to more regionalized trade patterns.

“Deglobalization is still only a risk, not a current reality,” says Steven Altman, Senior Research Scholar and Director of the DHL Initiative on Globalization at NYU Stern’s Center for the Future of Management. “Geopolitical threats and public policy shifts have led many to predict a fracturing of the world economy along geographic or geopolitical lines, or even a retreat from international to domestic business. But the latest data still show that international flows are growing and very few countries are cutting ties with their traditional counterparts. It is important to recognize the resilience of global flows because a lopsided focus on the threats to globalization could make deglobalization a self-fulfilling prophecy.”

Published regularly since 2011, the renowned DHL Global Connectedness Report provides reliable findings on globalization trends by analyzing 15 types of international trade, capital, information, and people flows. The 2024 edition is based on almost nine million data points. It ranks the connectedness of 181 countries, accounting for 99.7 percent of the world’s gross domestic product and 98.7 percent of its population. A collection of 181 one-page country profiles provides concise summaries of individual countries’ globalization patterns.

The report was commissioned by DHL and authored by Steven A. Altman and Caroline R. Bastian of New York University Stern School of Business.

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