From wars and trade disputes to shifting alliances and supply chain disruptions, geopolitical instability has become one of the biggest forces shaping the global economy. In 2025, businesses will navigate an increasingly complex environment in which conflicts, regulatory changes, and economic pressures are redefining the way goods move across borders.
The ongoing war in Ukraine, the Israel-Gaza conflict, tensions in the South China Sea, and the Red Sea crisis have all had a direct impact on global logistics. Meanwhile, U.S. trade policies—especially with the potential return of tariffs—and post-Brexit trade complexities continue to add uncertainty to global supply chains. As businesses grapple with an increasingly volatile geopolitical landscape, DHL executives outlined how the logistics giant is adapting to shifts in trade patterns, supply chain disruptions, and economic uncertainty.
“We’re seeing a high level of volatility, from the conflicts in Ukraine and the Middle East to shifting trade policies in the U.S. and Europe,” Mike Parra, CEO of DHL Express Europe, noted.
“These factors are reshaping supply chains as companies rethink sourcing, production, and transport networks.” While geopolitical risks have historically caused disruptions, Parra pointed out that globalisation remains strong.
“Despite tensions, the DHL Global Connectedness Index shows that trade is not retreating—it’s evolving. Businesses are spreading their supply chains across multiple regions to reduce dependency on any single market.” One key shift has been the diversification of manufacturing and logistics hubs. “China is still an important player, but we’re seeing companies move operations to Southeast Asia, Mexico, and Eastern Europe,” Saul Resnick, CEO of DHL Supply Chain UK and Ireland, explained.
“The ‘China-plus-one’ strategy is now a reality, with countries like Vietnam, Indonesia, and Turkey benefiting from this shift.” A major theme of the discussion was the impact of shifting trade policies—particularly in the U.S. and UK. “There’s a lot of speculation around new tariffs and regulations, especially with the upcoming U.S. elections,” Parra said. logistics models,” he said.
“While it’s too early to predict exact policy changes, what we do know is that protectionist measures could impact trade flows.” For the UK, Brexit continues to shape supply chain decisions. “Businesses have adjusted to post-Brexit trade complexities, but we’re still seeing some companies moving distribution centres to the EU to simplify logistics,” said Parra.
“However, the UK remains a critical market, and we’re focused on helping businesses navigate customs challenges and seize new trade opportunities.” Beyond tariffs and policy changes, disruptions in key transport routes—such as the Red Sea crisis and ongoing port congestion— have forced companies to rethink their logistics strategies. Saul Resnick explained how supply chain resilience has become a top priority for businesses.
“With supply chains becoming more unpredictable, companies are reducing stock levels, optimising inventory, and exploring new “We’re seeing a greater focus on regional supply chains to minimise risks associated with long-distance transport.” Another key trend is investment in automation and digital logistics solutions.
“With rising costs and ongoing uncertainties, companies are looking at AI-driven supply chain management, automated warehouses, and real-time tracking to gain greater control over their operations,” Resnick noted.
“This is about future-proofing supply chains, ensuring businesses can adapt quickly to disruptions.” Despite the challenges, DHL remains optimistic about global trade, leveraging its vast logistics network and strategic investments to help businesses navigate geopolitical shifts.
“We operate in over 220 countries and territories, which gives us the ability to quickly pivot in response to changing market conditions,” Parra stated.
