Frictionless Supply Chain Future
12th March 2025
Navigating uncertainty and driving growth for European trade – an exclusive Logistics Business article by Rashid Abdulla, Europe CEO & MD at DP World.
The past year marked a positive trajectory for Europe’s trade landscape. Data from Eurostat reveals in 2024, European Union trade volumes reached unprecedented levels, driven by increased global demand and strengthened intra-regional supply chains. Projections from the European Commission indicate a 3% growth for 2025 in goods trade within the EU, up from 2.5% in 2024.
However, unprecedented challenges await just around the corner. Shifting geopolitical dynamics, the energy crisis, and the ongoing implications of inflationary pressures pose significant risks to trade stability. The pressing question remains: are Europe’s supply chains agile and resilient enough to weather these disruptions?
Frictionless Supply Chains
According to the Trade in Transition 2025 report, launched by DP World and Economist Impact, overall Europe is more secure than other regions in terms of trade. Its strong internal trade network – accounting for around 70% of exports and imports – acts as a buffer against disruptions, as it is less exposed to sectors dominated by adversarial trading partners. Still, vulnerabilities persist.
Weathering escalating trade tensions and global fragmentation requires flexibility and agility that can be achieved through new digital solutions and modernised infrastructure. Europe’s progressive customs policies, such as the Single Window for Trade, have already made inroads towards a more streamlined imports and exports process, but we must also secure the right physical and digital assets to protect against future disruption.
We need look no further than Europe’s automotive sector to understand the significant changes impacting supply chains. This is an industry ripe for transformation.
Lessons from Europe
The automotive industry is a crucial driver of growth within Europe, providing jobs to around 13.8 million people and generating €101.9 billion trade surplus. However, overcapacity in European
production and a slowdown in growth are causing many original equipment manufacturers (OEMs) to downsize their workforce, while spiralling costs and global economic stagnation further
exacerbates the situation. Historically an export hub, Europe has now become a net importer of vehicles. Many of these imported vehicles have been piling up in European ports as OEMs try to find logistics providers capable of end-to-end supply chain solutions.
As Europe’s leading provider of supply chain solutions, responsible for transporting goods across more than 30 countries on the continent, DP World continues to invest in world-class infrastructure to support frictionless trade in Europe. We operate 14 multimodal inland terminals and 90 marine service sites across the continent. Many of these locations support automotive capabilities, from inbound transport, production and assembly to finished vehicles, battery and electric vehicle handling. On top of this, DP World is a key partner to the motorsports sector, working together with McLaren Racing to reimagine what is possible for European automotive supply chains.
Our Roll-On-Roll-Off (Ro-Ro) terminals at Constanta (Romania), Zeebrugge (Belgium), Limassol (Cyprus), and Yarimca (Türkiye), for instance, have become the gold standard for automotive handling, helping to unlock trade across Europe and East Asia. Meanwhile, when Turkish ports became congested due to skyrocketing automotive import demand last year, we introduced an innovative new ‘cars in containers’ solution to address the problem. The solution allows vehicles to be offloaded using traditional cranes at lift-on-lift-off (LoLo) ports, without requiring a specialised Ro-Ro port or berth, making it a far more efficient and resilient route to market.
In addition to physical infrastructure, we continue to upgrade our digital platforms and technologies to provide greater supply chain visibility and efficiency for car manufacturers. From using blockchain to track and trace shipments to advanced software capable of optimising routes – by combining our physical assets with digital solutions, we’re delivering smarter logistics solutions at every turn for customers across Europe.
Adapting to Thrive
The year ahead remains uncertain, however we can expect ongoing change in supply chain strategies and plans to keep the goods moving. Here in Europe, we must continue to adapt to evolving compliance standards, particularly those relating to the EU’s ambitious climate agenda, such as the EU Deforestation Regulation (EUDR) and Carbon Border Adjustment Mechanism (CBAM), among others. Supply chain modernisation is a necessity to navigate these complexities and keep trade flowing through the region.
Strategic partnerships are vital for driving innovation and unlocking mutual benefits. McLaren Racing, with its relentless pursuit of excellence in F1, demonstrates the power of precision, agility, and teamwork – qualities that are equally critical in logistics. By bringing together expertise from two distinct industries, we can identify parallels and apply cross-sector learnings to tackle shared challenges more effectively.
For example, McLaren’s use of datadriven decision-making and real-time analysis in races offers valuable insights into optimising supply chain operations. Similarly, the logistics sector’s expertise in scalability and global operations provides McLaren with opportunities to refine its own processes. This exchange of ideas fosters innovation that benefits both organisations – whether it’s improving operational efficiency, enhancing resilience, or staying ahead in competitive markets.
This concept was exemplified at ‘At Every Turn Live’, a seminar we hosted with McLaren at their headquarters in November 2024 for key players within the logistics industry. The event explored how applying an F1 mindset can address logistics challenges, featuring expert speakers on topics such as the potential impact of AI, the implications of the new US presidency on global trade, and strategies to strengthen supply chains.
Through partnerships like these, we can break silos, adapt best practices, and jointly invest in solutions that drive measurable progress for both industries. By aligning on shared goals and leveraging our respective strengths, we create value that neither could achieve alone.
The journey towards a frictionless future in European trade depends on our ability to adapt and innovate. By investing in strategic partnerships, modern infrastructure, and embracing digital solutions, we can navigate the uncertainties ahead and drive sustainable growth. Together we can build resilient supply chains that not only withstand disruptions but also thrive in an ever-evolving landscape.
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