The COVID-19 pandemic unleashed a series of seismic disruptions across global supply chains, prompting a re-evaluation of existing logistics models. In Europe, the logistics sector—already navigating pre-pandemic challenges such as sustainability mandates and digital transformation—was thrown into uncharted territory. Now, four years after the initial shock, it is clear that the European logistics market is not merely recovering, it is transforming in fundamental ways.
From resilience strategies and workforce reconfiguration to rapid tech adoption and an invigorated focus on regionalisation, logistics players are rewriting the rules of engagement. What does this mean for manufacturers, distributors, and policy-makers moving forward? Let’s unpack the deeper reshaping of Europe’s logistics landscape.
From Just-in-Time to Just-in-Case: Rethinking Supply Chain Resilience
Before 2020, lean inventory and global sourcing were seen as pillars of efficiency. European logistics models favoured “just-in-time” (JIT) frameworks—highly efficient but vulnerable to disruption. The pandemic, however, exposed the fragility of this system, with port backlogs, container shortages, and restricted border flows causing downstream chaos.
As a result, a “just-in-case” philosophy has gained traction. This doesn’t mean hoarding inventory but rather balancing efficiency with resilience. According to a 2022 McKinsey & Company survey, 74% of European supply chain leaders have made nearshoring or regionalisation a top priority.
Case in point: automotive supply chains, traditionally reliant on Asian components, are accelerating relocation of Tier 2 and Tier 3 suppliers to Eastern Europe. Companies like Valeo and Bosch are expanding manufacturing footprints in Poland, Slovakia, and Romania—encouraged by EU funds and lower labour costs.
Digitisation Takes the Driver’s Seat
Technology has historically lagged in parts of the European logistics ecosystem, particularly among small and mid-sized logistics providers. However, the pandemic served as a digital wake-up call. Cloud-based Transportation Management Systems (TMS), AI-powered route optimization, and real-time tracking platforms are no longer optional—they are strategic imperatives.
Several logistics players have scaled digital investments since 2020:
- DB Schenker launched its customizable eSchenker platform enabling real-time freight visibility and integrated communication across touchpoints.
- Maersk accelerated its transition toward becoming a logistics integrator, with acquisitions of digital freight platforms like Senator International.
- Start-ups such as sennder and Forto have raised significant funding rounds (€160 million and €240 million respectively) to expand digital freight forwarding across Europe.
As noted by Stéphane Poittevin, Director of European Logistics at VINCI Energies: “Digitalisation is no longer a matter of competitive advantage. It’s about survival. The clients expect full visibility, speed and control of their goods—and rightly so.”
Workforce Challenges and New Recruitment Models
The European logistics sector has historically faced labour shortages, especially among truck drivers and warehouse operators. COVID-19 exacerbated these shortages. In 2021 alone, the IRU (International Road Transport Union) estimated that around 400,000 driver positions in Europe remained unfilled.
Logistics providers are having to get creative. This includes:
- Investing in automation and robotics to offset labour constraints. DHL’s use of collaborative robots (“cobots”) in its Czech and German warehouses has reportedly increased productivity by up to 25%.
- Launching cross-border recruitment campaigns targeting younger and more diverse talent pools.
- Offering upskilling programs to transition traditional labour forces toward digital-first roles.
Interestingly, platforms like Gigl or Jobandtalent are also gaining ground in the temp logistics workforce management, providing “on-demand” flex workers that help accommodate shifting seasonal demands.
Greening the Supply Chain: More Than a Buzzword
The necessity to build resilient supply chains has converged with growing regulatory pressure for decarbonisation. The European Green Deal, Fit for 55 package, and Carbon Border Adjustment Mechanism (CBAM) clearly signal the EU’s resolve to curb emissions across all sectors—including logistics.
In response, several major players are now embedding ESG goals into core logistics strategies:
- DPDgroup is implementing zero-emission last-mile deliveries in 225 European cities by 2025.
- Hapag-Lloyd has invested in liquefied natural gas (LNG) vessels and announced a 60% reduction in emissions intensity over a decade.
- Rail freight is gaining new traction, especially for intra-European flows. DB Cargo saw a 9% year-over-year increase in volumes on east-west corridors in 2022.
Companies are also pressured by customers. A survey by Capgemini found that 62% of European B2B clients are willing to pay a premium for low-carbon logistics services—significantly shifting the traditional cost-efficiency calculus.
Regionalisation: A New Geography of Logistics Hubs
One of the most pronounced pandemic-induced shifts has been the reconfiguration of Europe’s logistics geography. Traditional mega-hubs like Rotterdam, Hamburg and Antwerp remain crucial, but new regional nodes are emerging to meet localised demand and de-risk long supply chain paths.
Take for example Hungary and the Czech Republic. Both countries have doubled down on logistics infrastructure, benefiting from EU cohesion funding as well as private investment. In 2023, Prologis, a key industrial logistics real estate developer, added over 600,000 m² of capacity across the Visegrad region.
This trend aligns with manufacturers seeking to relocate closer to key EU markets while avoiding the vulnerabilities associated with single-point disruptions. The Suez blockage and recent Red Sea instability have only reinforced this logic.
Policy and Regulation: Toward Harmonisation
European logistics providers today face a complex regulatory maze, spanning everything from cabotage rules and emissions reporting to electronic freight documents (e-CMR). But the EU is pushing toward harmonisation to enable smoother cross-border flows and reduce bureaucracy-induced friction.
The “Mobility Package” regulations, introduced progressively since 2020, exemplify this harmonisation attempt—addressing driver rest mandates, vehicle return logistics, and fair competition. Although it’s sparked debate among Central vs. Western European operators, it lays the groundwork for a standardised framework.
Moreover, the recent push by the European Commission to mandate electronic freight documents (eFTI Regulation) by 2025 indicates a clear timeline for digital integration. Once in place, these measures should substantially reduce logistics delays and administrative costs across the single market.
Looking Ahead: What Will Define Leadership in European Logistics?
If there’s one lesson the pandemic hammered home, it’s that agility beats size. The winners in the new logistics paradigm will be those who can combine digital agility, sustainability focus, and proactive risk management.
Decision-makers across the industry are prioritising agility through several approaches:
- Building modular supply networks that can scale or reconfigure quickly in response to geopolitical or environmental shifts.
- Embracing data-driven scenario planning, using predictive analytics to manage volatility.
- Fostering public-private collaboration to address infrastructural and regulatory roadblocks, particularly as mobility patterns evolve.
“Logistics is no longer the silent backbone; it’s now a boardroom topic,” says Anette Galskjøt, Director General of CLECAT (European Association for Forwarding, Transport, Logistics and Customs Services). “The challenge is not only to move goods, but to move with foresight.”
As Europe navigates an uncertain global context—from war in Ukraine to emerging AI technologies—the recalibration of its logistics systems remains central to broader industrial competitiveness. In many ways, the sector is proving that crises can indeed be opportunities—but only for those willing to change their tracks in time.