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Sustainable Gatwick Airport Warehouse

Posted on by Keith McKinley

St. Modwen Logistics, one of the UK’s leading logistics developers and managers, has completed the construction of a second warehouse at St. Modwen Park Gatwick for DHL Group. The company, which has been a tenant at the park since 2011 and already occupies a 64,000 sq ft unit, has signed a 15-year lease for the new facility.

The c.115,000 sq ft warehouse is set to achieve a BREEAM ‘Excellent’ rating and is EPC A+ rated, achieving the highest possible level of energy efficiency. The warehouse’s green credentials also include the installation of 1,900 sqm of PV panels on the roof to generate renewable energy needed to power the building’s 12,000 sq ft of Grade A office space and ensure it is net-zero carbon in operation.

Active and sustainable travel will be encouraged at the park with 28 EV charging spaces installed as well as the inclusion of cycle bays and shower and changing facilities. The landscaped site includes hedgerows and plants, which will result in a biodiversity net gain of 39%, as well as new amenity areas for both local communities and DHL Group staff, including a trim trail, cycle path and outdoor gym equipment.

Situated just 3km from Gatwick airport, alongside Junction 10 of the M23, St. Modwen Park Gatwick provides excellent links to central London. This location is beneficial to companies looking to be close to Gatwick Airport as well as to the main motorway routes into central London. DTRE and BNP Paribas are the retained leasing agents for St. Modwen Park Gatwick.

Ellen Thomas, Senior Development Manager at St. Modwen Logistics, commented: “We are proud to announce the completion of our new, sustainable warehouse at St. Modwen Park Gatwick for DHL Group. This is a state-of-the-art warehouse facility that will support up to 150 jobs, helping to sustain a thriving local economy. This is DHL Group’s second development on the site, underlining how we are working in partnership with our customers to deliver the high-quality, bespoke spaces they need to succeed.”

Jake Huntley, Partner at DTRE, commented: “We are observing more occupiers focusing on energy efficient accommodation and we are proud to have been able to offer St. Modwen Park Gatwick to environmentally conscious customers. The success of the scheme is testament to St. Modwen’s ability to deliver critical logistics infrastructure to the highest standards.”

DHL Transitions Fuelling from Diesel to HVO

Posted on by David Priestman

DHL Supply Chain has announced the acceleration of its UK road transport decarbonisation strategy. In addition to investments already made in deploying vehicles running on biogas and electric vehicles, hydrotreated vegetable oil (HVO) fuel is now actively being rolled out across the majority of its on-site fuelling stations throughout the UK, enabling DHL to assess operational processes and the performance of the fuel. With installation scheduled for completion by the end of the year, transitioning to HVO fuel will deliver 80-90% carbon savings compared to diesel; with an estimated total of 15,000 tonnes of CO2e savings being expected to be delivered.

Produced from biomass such as used cooking oils and waste from food manufacture, HVO is a drop-in fuel, meaning it can be used within existing vehicles without compromising operational performance; removing the need for new infrastructure or fleet.

Saul Resnick, CEO, DHL Supply Chain UK & Ireland said, “The installation of HVO fuel across our bunkered sites represents a critical moment in our multi-fuel decarbonisation strategy. HVO improves our service to customers by introducing a low-carbon renewable alternative fuel with minimal disruption. As an industry leader, we are rolling out HVO at scale and with impressive pace, to deliver immediate and substantial carbon savings while we continue to work towards viable zero-emission alternatives. We are extending an invitation to our customers to join us on this transformative journey, and actively collaborate with us in adopting these greener alternatives, we can provide them with a powerful tool to make their supply chains greener.”

More than six million litres of HVO fuel will be rolled out within DHL’s on-site fuelling stations this year, replacing diesel in 20 locations across the UK. In 2024, the business plans to install additional fuel bunkers across its network, increasing its use of HVO fuel to over 24 million litres, and with the effect of a full year, the carbon savings impact will be even greater.

The roll-out of HVO fuel in the UK brings to life DHL’s recently announced Green Transport Policy, a global standard on the most suitable green alternative per market. The Policy comes with an investment of around 200 million euros in alternative technologies and fuels to reduce close to 300,000 tons of CO2 emissions in the next three years in partnership with customers.

DHL Supply Chain and AutoStore Partner

Posted on by David Priestman

DHL Supply Chain, global leader in contract logistics, and AutoStore™, a pioneering robotic technology company specializing in automated storage and retrieval systems, are expanding their partnership in a move set to further automated warehouse operations on global scale.

DHL Supply Chain, already involved in nine operational AutoStore warehouse projects with four more in the planning stage, is poised to become one of AutoStore’s largest 3PL clients, reinforcing their commitment to digitalization and automation. The nine existing Systems effectively operate 800,000 bins, with the forthcoming four Systems elevating the total number of bins to a remarkable 1.2 million. In the future, DHL also intends to construct five further facilities in addition to those already in operation or planning.

This innovative automated storage and retrieval system (AS/RS) technology has been developed to efficiently manage and optimize inventory using vastly reduced space within warehouses. Its highly modular and scalable design makes it a preferred solution for e-commerce and businesses handling smaller products such as fashion and tech items. The strategic aim of DHL and AutoStore through this partnership is to accelerate the implementation of this ground-breaking technology that enhances abilities to meet diverse client needs.

Fleet of more than 1,000 robots will enhance operational efficiency and throughput

Markus Voss, COO and CIO at DHL Supply Chain, emphasizes the importance of this collaboration: “We are pleased to expand our existing relationship with AutoStore as we continue to implement our digitalization and automation strategy in a growing number of warehouses, allowing us to better and faster serve our customers. AutoStore’s standardized and modular technology perfectly aligns with our aim to make our operations more efficient, enabling swift scalability and adaptability across various use cases and end-markets – a crucial factor for us as a third-party logistics provider. Through a standardized approach and dedicated stock availability we will be able to significantly drive down implementation times. Additionally, AutoStore’s network of partners is invaluable in supporting our growth strategy across multiple geographies.”

Since 2012, DHL Supply Chain and AutoStore have partnered to implement cutting-edge solutions across sites in Singapore, Poland, Germany, Australia, and the US. The ongoing collaboration has already led to expansions at all operational sites, resulting in a fleet of more than 1,000 Robots worldwide that significantly increasing operational efficiency and throughput.

Mats Hovland Vikse, CEO of AutoStore, expressed excitement about the expansion: “Our longstanding collaboration with DHL Supply Chain has showcased the strength, reliability, and efficiency of AutoStore’s technology. We are thrilled to further expand this valued partnership, supporting DHL Supply Chain’s global deployment of automated warehouse solutions. We are excited about the significant growth opportunity that this represents for AutoStore, as we continue to drive innovation in the world of logistics.”

This expanded partnership between DHL Supply Chain and AutoStore promises to redefine the future of warehousing, offering scalable, adaptable, and efficient solutions that cater to the ever-evolving needs of customers worldwide.

Aviation Decarbonization via Sustainable Fuel

Posted on by David Priestman

DHL Express and World Energy, a leading SAF (sustainable fuel) producer and low-carbon solutions provider, have signed a long-term strategic agreement to accelerate the decarbonization of aviation logistics through the purchase of approx. 668 million litres of Sustainable Aviation Fuel via sustainable aviation fuel certificates (SAFc). The seven-year contract, to run through 2030, is one of the longest and largest SAFc agreements in the aviation industry to date.

The agreement is expected to reduce approx. 1.7 million tonnes of carbon dioxide emissions over the aviation fuel lifecycle – this is equivalent to handling the approximately 77,000 annual aircraft movements of DHL Express in the Americas carbon neutrally for a full year. The milestone agreement is further testament to DHL Group’s ambitious Sustainability Roadmap, which includes the goal to reduce the Group’s annual greenhouse gas emissions to below 29 million tonnes CO2e in 2030 across scopes 1, 2 and 3.

“DHL Express is firmly dedicated to pioneering a sustainable future in aviation logistics; said John Pearson, CEO DHL Express. By partnering with World Energy and confirming this milestone agreement, we are taking another concrete leap towards minimizing our carbon footprint and contributing to a more sustainable future. We want to inspire more suppliers to accelerate industry-wide production and adoption of SAF.”

“We are honoured to team up with DHL on this quest to decarbonize aviation,” said Gene Gebolys, World Energy CEO. “Decarbonizing the hard-to-abate sectors requires commitment across the value chain, and partnerships like the one we are launching today are key to enabling companies like DHL to meet their ambitions climate goals.”

Transparency and accountability with Book & Claim

With SAFc, the fuel’s environmental attributes are separated from the fuel itself using a “Book & Claim” chain of custody model. The Book & Claim approach enhances transparency and accountability of sustainable fuels by ensuring that the emission reductions associated with each credit are accurately transferred and verified by a third party. It allows DHL Express to purchase SAFc, utilize the associated emission reductions, and extend the environmental attributes to its customers through the GoGreen Plus service.

SAFc delivered through Book & Claim also helps to minimize both logistical costs and emissions as the fuel does not need to be shipped around the world. This helps make SAFc the most efficient way to decarbonize aviation. All of World Energy SAFc for DHL will meet rigorous sustainability certification standards from the Roundtable on Sustainable Biomaterials (RSB). In addition, all volumes will be traced through an independent registry to ensure traceability of claims related to SAFc. The fuel itself will be supplied to Los Angeles area airports, close to World Energy’s production facility in Paramount, California.

Biomethane used in Irish Truck Network

Posted on by David Priestman

DHL Supply Chain has today announced plans to begin operating biomethane fuelled trucks with an investment worth €80 million into a dedicated biomethane production facility in Cork, run by Stream BioEnergy. Biomethane is a renewable gas with the capacity to be carbon neutral. The new facility will provide fuel for up to 150 trucks, resulting in an annual carbon reduction of 15,000 tonnes, the equivalent of more than 38 million miles driven by an average petrol-powered passenger vehicle.

As part of a shared commitment to decarbonising Ireland’s transport network, DHL has joined forces with leading grocery retailer, Tesco Ireland. To support the initial vehicle roll-out and whilst production ramps up, DHL will subsidise the biomethane from other sources. Once the new facility is fully functioning, DHL will operate 92 locally fuelled biomethane trucks across Tesco’s country-wide network.

DHL is fundamentally decarbonising a significant proportion of the retail transport sector in Ireland, and they intend to continue to roll this out to all the other sectors in which they operate; consumer, technology, aviation, life sciences and healthcare. Given the scale of the rollout, this will be a game changer for the transportation industry in Ireland.

The biomethane production site at Little Island, Cork, owned and operated by Stream BioEnergy, will process 90,000 tonnes of industry and consumer food waste per annum which could otherwise have been sent to landfill. The deployment of biomethane at scale requires no infrastructural upgrades to Ireland’s existing gas grid and given its capacity to be carbon neutral, biomethane is a flexible, cost-effective way to decarbonise commercial road transport.

The project reflects DHL’s commitment to delivering sustainable logistics solutions and the company’s global GoGreen agenda. The deployment of biomethane trucks, as well as investment in domestic biomethane energy production will play an important part in helping the company achieve its target of net-zero emissions by 2050.

Managing Director of DHL Supply Chain, Ireland, Ciaran Foley said: “We are extremely proud to be enhancing renewable energy production here in Ireland and our collaboration with Tesco marks a significant step in our shared journey towards achieving net-zero emissions. Our customers’ transport networks are a vital focus area when looking at how they can achieve their overall sustainability goals so by making alternative fuels a reality we can really prove our value as a strategic partner.”

Tesco Ireland’s Retail and Distribution Director Ian Logan said: “We have one of the most sophisticated distribution networks in the country, and improving its efficiency and environmental impact will play an important role in our journey to net zero. Our current HGV transport fleet makes over 2,000 trips weekly, serving our growing network of 166 stores nationwide, so moving to a cleaner fuel in our value chain will play a vital role in achieving this.

“DHL’s credentials in leveraging renewable transport solutions are complimented by our own strong commitment to embracing sustainable practices and driving down our emissions. We are both committed to promoting collective environmental objectives; and to advance our ambition to achieve net zero in our value chain by 2050, and indeed in our own operations by 2035.”

DHL Supply Chain Invests in Latin America

Posted on by David Priestman

In view of the global trend of omni-sourcing, DHL Supply Chain, the world’s leading logistics company and part of DHL Group continues its strategic investments into emerging markets and fast-growing economies. Today, DHL Supply Chain announces a landmark investment of €500 million into the strategically located Latin American markets. These investments made until 2028 are supposed to strengthen DHL’s operations in Latin America. Projects include decarbonizing the domestic fleet through greener alternatives; building, developing and retrofitting its real estate assets and warehouses in the market; as well as significant investments into new technologies, robotics and automation solutions intended to improve workplaces whilst at the same time making operations more effective, flexible and resilient for customers. The investment is part of DHL Supply Chain’s strategic investment plan to further strengthen logistics capabilities in high-demand sectors, such as: Healthcare, automotive, technology, retail, e-commerce, among others.

Oscar de Bok, Global CEO of DHL Supply Chain (pictured) said: “Companies all around the globe are looking for more diversified sourcing and supply chain strategies by bringing stock points closer to their production and sales markets. Therefore we see increasing demand for logistics support in Mexico, Brazil and the other strategic markets in Latin America. That trend of investing in multiple source points closer to the large sales markets – which we call omni-sourcing – helps industry customers to build more resilient, robust and flexible supply chains to better cater to the needs of their end customers. That is why we are strategically investing in our logistics infrastructure in Latin America and those geographies that are strategically located and equipped to play a vital role in global trade.”

With the investment into its Latin America infrastructure the DHL Supply Chain is now complementing a long-standing history of strategic investments, acquisitions, and partnerships in the region. Not only the geographical proximity to large consumer markets in North America make the region a springboard to accelerate further growth, it is also the regions own booming sales markets which make it attractive for industries to invest and therewith request additional logistics support.

Agustin Croche, CEO in DHL Supply Chain Latin-America said: “At DHL Supply Chain we are fortunate to be an essential part of daily life; we are more than 40,000 people in this region and each of us is a unique link that contributes positively to the industry, supporting each of our clients with whom we always seek sustainable growth and long-term relationships. This is THE moment for Latin America, and we must take advantage of it.”

Following the announcement of the investment by Oscar de Bok and Agustin Croche, DHL Supply Chain Mexico also inaugurated a new Centre of Excellence for Electric Vehicles, with the participation of Mario Rodríguez, President of DHL Supply Chain in Mexico and Fathi Tlatli, Global President of the Automotive Sector for DHL Customer Solutions & Innovation. The mission of this new EV center is to provide synergy to the automotive industry in the region.

With more than 240 locations, the company has increased its operation in the region. In Brazil, for example, it recently announced the expansion and modernization of its Distribution Centre located in Goiás, while expanding its operations and presence in Extrema Minas Gerais for various clients and sectors such as the Pharmaceutical and Retail Fashion.

On the other hand, in Chile DHL Supply Chain has announced its new Distribution Centre in Pudahuel, while in Mexico, where demands are high due to the trend of bringing supply nearer to the North American sales markets, the company has expanded its presence with new warehouses. in Tijuana and Monterrey, as well as a new campus in the State of Mexico that will serve the e-commerce, retail, fashion, consumer, medical devices, aerospace, electronics, and automotive sectors mainly.

Life Sciences & Health Care | End-to-end traceability

With a robust portfolio made up of digitalization initiatives, standardized and sustainable logistics solutions and a deep understanding of regulatory frameworks in Latin America, DHL Supply Chain is at the forefront of end-to-end solutions with operational excellence for both temperature-controlled medicines, medical devices, and clinical trials, among others. In addition to the specialized distribution centres in Brazil, the company particularly has a fleet of 500 vehicles that serve this sector. In Mexico, during the third quarter of 2022, DHL Supply Chain acquired NTA, a company focused on logistics services for the pharmaceutical industry.

Commitment to sustainable and diverse logistics

The DHL Group has a clear sustainability roadmap aiming for a zero emissions operation by 2050. With investments of up to €7 billion in the period of 2020 – 2030 the group on an ambitious road towards achieving that goal. This has triggered a number of actions and investments made by the company in the Latin American countries be it the new electric, hybrid and biogas vehicles, with a fleet of close to 200 units, in addition to solar panels, energy management and recycling programs in its Distribution Centres.

In terms of diversity and inclusion, and with the objective of closing the gender gap in the logistics sector, among its inclusion programs, DHL Supply Chain has launched the Women at the Wheel Program in both Brazil and Mexico, where women drivers are who drive part of the company’s electric fleet, thus marking a new way of operating in these markets.

Retailers to Reduce Cost and Impact of Returns

Posted on by David Priestman

New global research from DHL Supply Chain among e-commerce decision makers in retail and consumer goods businesses reveals that the rise in returns is driving a major re-evaluation of policies and processes. Nearly half of the businesses surveyed are considering changes to returns handling processes to bring down the cost and environmental impact of returns.

Returns handling processes that aren’t designed for the current large volumes are a major source of the challenge. Retailers are struggling to effectively process and extract maximum value out of returned items leading to financial loss as well as environmental waste. According to the research, 17% of businesses are turning to disposal as their primary method for handling returned items that aren’t being restocked and sold.

With returns increasing on average 19% in the last two years, recent inflation is causing businesses concern and hastening the need for change.

A lack of integration between e-commerce and other channels is exacerbating the problem as it reduces the ways in which returned items can be restocked and resold. Designing product flows and cycles in the most efficient, and environmentally friendly way is key to tackling this challenge. DHL’s omnichannel returns handling capabilities bring together returns from all sources and its digital returns system enables colleagues to ‘grade’ items to determine the best way to handle the product, whether restocking at full price or discounted rate, repairing, reselling on a secondary marketplace or recycling. DHL then has the capabilities to fully manage the goods through each route, from specialist repairs to charitable donations.

While the financial burden of returns is being felt more acutely due to global economic instability, environmental concern remains one of the main drivers for change. A third of businesses stated they are already calculating the carbon emissions associated with returns and the same number plan to start doing so. What’s more, nearly nine out of ten retailers have plans or targets to reduce carbon emissions associated with returns.

As well as looking at returns handling, businesses are exploring the use of technology to drive down volume such as virtual fitting rooms. Meanwhile, many businesses are considering changes to their customer returns policies with a quarter of those surveyed exploring charges for returns not made in-store. However, these changes are being approached with caution due to concerns they could impact customers.

Nabil Malouli, Senior VP E-commerce & Returns Global, DHL Supply Chain, said: “We’ve reached a tipping point in returns both financially and environmentally, and retailers are right to examine their current returns processes and reverse supply chains. Our research shows that customer experience remains the number one priority for retailers but that doesn’t have to be sacrificed with dramatic changes to returns policies. Innovative ways to bring down overall volumes, combined more sophisticated returns handling capabilities allow retailers to offer faster refunds, quickly restock across multiple channels, repair for resale, and recycle responsibly. Enhancements like these have the potential to drive-up revenue and reduce waste, while also enhancing the overall customer experience.”

The full research findings can be found here. All figures are from an industry survey conducted by YouGov in March 2023 of 1,059 senior decision-makers in e-commerce retail across 5 markets: US, UK, Germany, Japan and Mexico.

Key findings:

• Over the last two years, returns have increased on average 19%
• 54% of businesses are concerned about the cost of returns
• 91% say inflation is driving re-evaluation of returns processes and policies
• 42% are considering changes to their customer returns policies
• 47% are considering changes to their returns handling processes
• 40% want to drive down the volume of returns being disposed of
• 29% currently calculate the carbon emissions associated with returns, 32% plan to start doing so
• 40% have plans to invest in any automation and robotics to improve e-commerce fulfilment and returns processes
• 57% are investing or plan to invest in technology initiatives to reduce returns volumes such as virtual fitting rooms
• 41% of businesses’ e-commerce returns are not integrated with non-e-commerce channels
• 23% are planning to introduce charges for returns not made in store
• 44% are considering plans to reduce the timeframe in which customers can return items
• 46% have concerns that changes to returns policy could impact customer loyalty
• 58% want to be able to offer faster refunds
• To reduce the financial impact of returns, the top priorities are (in order):
. Reducing the volume of returns
. Faster processing of returns
. Reducing the timeframe in which returns can be made
• 72% believe that giving consumers multiple returns options (drop off, collection etc) is positive for customer loyalty

Retail Supply Chain Prioritising Sustainability

Posted on by David Priestman

New research from DHL Supply Chain and The Retail Hive reveals that retail supply chain leaders are facing challenges when it comes to understanding and achieving improved sustainability practices in the supply chain.

The in-depth, qualitative research was conducted by The Retail Hive and included one to one interviews, as well as survey-based research with 58 retail supply chain leaders.

While supply chain sustainability is considered a priority for businesses (72%), majority of supply chain leaders (70%) are unaware of how much their organisation is actually investing in low- or zero carbon products and services across their supply chain.

Over half of respondents (54%) say that the pressure to make the organisations’ supply chain operations more sustainable comes from end-consumers and more than a third (36%) agree that their main goal of improving sustainability in the supply chain is to be a more resilient organisation.

38% of supply chain leaders claim that the main barrier to adopting practices and solutions that would make their supply chain more sustainable is cost, with 100% of respondents stating that they would like to see their partners doing more to help them provide a greener fulfilment offering.

Tutu Akinkoye, GoGreen Lead, UKI, DHL Supply Chain said: “Becoming a more responsible business is top of mind for both consumers and retailers today, but this latest piece of research makes it clear that for many supply chain leaders in the retail sector, successfully understanding and implementing a sustainability programme still feels challenging. The insights clearly show that retailers are in need of support from their partners to drive significant change across their operations, and we will continue to work closely with our customers to help achieve this.”

Sally Green, Co-Founder & Editorial Director, The Hive Network said: “Retailers can find themselves struggling with ‘analysis paralysis’ as they try to work out the most effective starting points for a supply chain sustainability programme. While this research shows that few have clear visibility on what this should look like, key lessons from retailers who have started on their journey include setting a manageable goal, introducing reporting structures, and working with partners to help increase the impact of sustainability initiatives.”

5000 Locus AMRs Deployed by DHL

Posted on by David Priestman

DHL Supply Chain has announced the expansion of its partnership with Locus Robotics, a leading provider of autonomous mobile robots (AMRs), increasing its use of Locus AMR robotics within its supply chain operations. As part of this new partnership, DHL Supply Chain will deploy 5,000 Locus Origin AMRs across its global network of warehouses and distribution centres, representing the industry’s largest AMR deal to date.

The expanded fleet of Locus AMRs will provide DHL Supply Chain with advanced automation technology to optimise its supply chain operations, and improve worker productivity, order accuracy, speed, and efficiency. The robots will be deployed across DHL Supply Chain’s global network, further enhancing its capabilities in e-commerce fulfilment, retail replenishment, and pharmaceutical and healthcare logistics.

“An idea is only a good idea if it can scale,” said Oscar de Bok, Chief Executive Officer DHL Supply Chain. “The flexibility and scalability of the Locus solution has been instrumental in helping us meet the evolving demands of the e-commerce landscape and leveraging cutting-edge technology to optimise our operations and deliver an even better experience for our customers.”

“The addition of Locus Robotics AMRs to our network is a major milestone in our digitalisation journey, and we are excited to partner with Locus Robotics to bring this technology to our operations,” said Markus Voss, Global CIO & COO DHL Supply Chain. “By using advanced robotics and data intelligence, we can further improve our operational efficiency, reduce processing time, and continue to improve our customer experience.”

“We are thrilled to be working in an expanded capacity with DHL Supply Chain to bring our industry-leading robotics technology to their global network,” said Rick Faulk (pictured), CEO of Locus Robotics. “As the robotics industry continues to consolidate, Locus Robotics has emerged as the clear leader in the market, and we are poised for further significant growth. Our innovative technology and commitment to customer success have set us apart. With our expanding product offerings and growing customer base, Locus Robotics is well positioned to capitalise on the tremendous opportunities ahead.

Industry’s largest AMR deal

DHL has now surpassed more than 250 million units picked using the LocusOne solution across its global sites. The deployment of the new LocusBots is expected to be fully integrated into DHL Supply Chain’s operations by the end of the year.

“Locus is helping DHL rapidly transform operations through a workforce empowered with the right technology at the right time, to deliver goods where they need to at the speed our modern markets demand,” said Sally Miller, Global Digital Transformation Officer, DHL Supply Chain. “Locus is a critical partner for us as we digitalise our warehouses, distribution and fulfilment centres to efficiently meet increasing order volumes, labour shortages, and rising consumer expectations.”

Locus Robotics is a leading provider of autonomous mobile robots for e-commerce, retail, and Locus Robotics is the world leader in revolutionary, enterprise-level, warehouse automation solution, incorporating powerful and intelligent autonomous mobile robots that operate collaboratively with human workers to dramatically improve product movement and productivity 2–3X. Named to the Inc. 500 two years in a row, and winning over 17 industry and technology awards, the Locus solution dramatically increases order fulfilment productivity, lowers operational costs, and improves workplace quality, safety, and ergonomics for workers. Supporting more than 100+ of the world’s top brands and deployed at 250+ sites around the world, Locus Robotics enables retailers, 3PLs and specialty warehouses to efficiently meet and exceed the increasingly complex and demanding requirements of today’s fulfilment environments.

Netherlands tops DHL Globalisation Index

Posted on by David Priestman

DHL and New York University’s Stern School of Business have released the new DHL Global Connectedness Index 2022, an in-depth report on the state of globalisation and its prospects. Analysing data from 171 countries and territories, it reveals how flows of trade, people, capital, and information move around the world.

The report shows that international flows have been remarkably resilient in the face of recent shocks such as the Covid-19 pandemic and the war in Ukraine. After a slight decline in 2020, the composite DHL Global Connectedness Index rose back to above pre-pandemic levels in 2021. The currently available data points to a further increase in 2022, despite slower growth in some flows. International trade in goods was 10% above pre-pandemic levels in mid-2022. International travel remained 37% below 2019 levels in 2022, but doubled compared to 2021.

“The latest DHL Global Connectedness Index data clearly debunks the perception of globalisation going into reverse gear,” John Pearson, CEO of DHL Express, concludes. “Globalisation is not just a buzzword, it’s a powerful force that has transformed our world for the better. By breaking down barriers, opening up markets and creating opportunities, it has enabled individuals, businesses and entire nations to flourish and thrive like never before. As we continue to embrace globalisation, we can build a brighter future that benefits us all, creating a world that is more interconnected, more prosperous and more peaceful than ever before.”

US and China: Geopolitical rivalry frays connection

The DHL Global Connectedness Index provides evidence that the US and China are decoupling in many fields. Looking at 11 types of trade, capital, information, and people flows (such as merchandise exports, M&A transactions, and scientific research collaboration), the share of US flows with China declined for 8 out of 11 types since 2016. In the same period, the share of China’s flows with the US decreased for 7 out of 10 types with data available for China. Several of these were large declines. Nonetheless, the US and China are still linked by far greater flows than any other two countries that do not share a border. Furthermore, the data shows that, so far, the decoupling between these two countries has not led to a broader fragmentation of global flows between rival blocs of countries.

No evidence of trend towards regionalisation – globalisation has increased

Analyses in the DHL Global Connectedness Index also show that predictions of a shift from globalisation to regionalisation have not – at least yet – come to fruition. The average distance traversed by trade, capital, information, and people flows has increased over the past two decades, and trade flows even stretched out over longer distances during the Covid-19 pandemic. The only category that displays a clear recent shift toward regionalisation is people flows. This is due to the dramatic change in travel patterns during the Covid-19 pandemic.

“It remains an open question whether trade patterns will become significantly more regionalised in the future,” says Steven Altman (pictured), Senior Research Scholar and Director of the DHL Initiative on Globalisation at NYU Stern’s Center for the Future of Management. “Many companies and governments are focused on nearshoring to regionalise supply chains, and there are substantial business benefits that can come from regionalisation. On the other hand, more than half of all trade already happens within regions, and the benefits of long-distance trade are still important, especially as inflation remains high, economic growth has slowed, and container shipping rates have come back down.”

Ranking of most globally connected countries

In the country ranking of the DHL Global Connectedness Index 2022, the Netherlands was again the most globally connected country. Singapore ranked second overall and first in terms of the size of international relative to domestic flows. The UK has the most globally distributed flows. Among the 55 most globally connected countries, there are representatives from every world region.

The DHL Global Connectedness Index

Published regularly since 2011, the renowned DHL Global Connectedness Index provides reliable findings on globalisation trends by analysing 13 types of international trade, people, capital, and information flows. The 2022 edition is based on over four million data points from 171 countries, accounting for 99.7% of the world’s gross domestic product and 96% of its population. A collection of 171 one-page country profiles provides concise summaries of individual countries’ globalisation 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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