<?xml version="1.0" encoding="UTF-8"?><rss xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:content="http://purl.org/rss/1.0/modules/content/" xmlns:atom="http://www.w3.org/2005/Atom" version="2.0" xmlns:itunes="http://www.itunes.com/dtds/podcast-1.0.dtd" xmlns:googleplay="http://www.google.com/schemas/play-podcasts/1.0"><channel><title><![CDATA[The Chain: Logistics & Operations]]></title><description><![CDATA[Deep dives into logistics, transportation, warehousing, operations, and execution challenges across global supply chains.]]></description><link>https://www.thechain.media/s/logistics</link><image><url>https://substackcdn.com/image/fetch/$s_!MY6t!,w_256,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2Fbd141239-6af3-44c9-b656-ca6c7bc8f235_500x500.png</url><title>The Chain: Logistics &amp; Operations</title><link>https://www.thechain.media/s/logistics</link></image><generator>Substack</generator><lastBuildDate>Mon, 04 May 2026 13:56:44 GMT</lastBuildDate><atom:link href="https://www.thechain.media/feed" rel="self" type="application/rss+xml"/><copyright><![CDATA[Global Supply Chain Council LLC]]></copyright><language><![CDATA[en]]></language><webMaster><![CDATA[mh@gscc.co]]></webMaster><itunes:owner><itunes:email><![CDATA[mh@gscc.co]]></itunes:email><itunes:name><![CDATA[Global Supply Chain Council]]></itunes:name></itunes:owner><itunes:author><![CDATA[Global Supply Chain Council]]></itunes:author><googleplay:owner><![CDATA[mh@gscc.co]]></googleplay:owner><googleplay:email><![CDATA[mh@gscc.co]]></googleplay:email><googleplay:author><![CDATA[Global Supply Chain Council]]></googleplay:author><itunes:block><![CDATA[Yes]]></itunes:block><item><title><![CDATA[The End of Human-Heavy Forwarding: Why AI Will Hollow Out the Middle]]></title><description><![CDATA[If warehouses can run without humans, freight forwarding companies are next. The question is not if, but how badly companies will botch the transition.]]></description><link>https://www.thechain.media/p/the-end-of-human-heavy-forwarding</link><guid isPermaLink="false">https://www.thechain.media/p/the-end-of-human-heavy-forwarding</guid><dc:creator><![CDATA[Global Supply Chain Council]]></dc:creator><pubDate>Sat, 25 Apr 2026 04:40:44 GMT</pubDate><enclosure url="https://substackcdn.com/image/fetch/$s_!4wC2!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fd603e58e-9517-4cfc-b542-b5f9221b5672_1200x635.avif" length="0" type="image/jpeg"/><content:encoded><![CDATA[<div class="captioned-image-container"><figure><a class="image-link image2 is-viewable-img" target="_blank" href="https://substackcdn.com/image/fetch/$s_!4wC2!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fd603e58e-9517-4cfc-b542-b5f9221b5672_1200x635.avif" data-component-name="Image2ToDOM"><div class="image2-inset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!4wC2!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fd603e58e-9517-4cfc-b542-b5f9221b5672_1200x635.avif 424w, https://substackcdn.com/image/fetch/$s_!4wC2!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fd603e58e-9517-4cfc-b542-b5f9221b5672_1200x635.avif 848w, https://substackcdn.com/image/fetch/$s_!4wC2!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fd603e58e-9517-4cfc-b542-b5f9221b5672_1200x635.avif 1272w, https://substackcdn.com/image/fetch/$s_!4wC2!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fd603e58e-9517-4cfc-b542-b5f9221b5672_1200x635.avif 1456w" sizes="100vw"><img src="https://substackcdn.com/image/fetch/$s_!4wC2!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fd603e58e-9517-4cfc-b542-b5f9221b5672_1200x635.avif" width="1200" height="635" 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srcset="https://substackcdn.com/image/fetch/$s_!4wC2!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fd603e58e-9517-4cfc-b542-b5f9221b5672_1200x635.avif 424w, https://substackcdn.com/image/fetch/$s_!4wC2!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fd603e58e-9517-4cfc-b542-b5f9221b5672_1200x635.avif 848w, https://substackcdn.com/image/fetch/$s_!4wC2!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fd603e58e-9517-4cfc-b542-b5f9221b5672_1200x635.avif 1272w, https://substackcdn.com/image/fetch/$s_!4wC2!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fd603e58e-9517-4cfc-b542-b5f9221b5672_1200x635.avif 1456w" sizes="100vw" fetchpriority="high"></picture><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container restack-image"><svg role="img" width="20" height="20" viewBox="0 0 20 20" fill="none" stroke-width="1.5" stroke="var(--color-fg-primary)" stroke-linecap="round" stroke-linejoin="round" xmlns="http://www.w3.org/2000/svg"><g><title></title><path d="M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882"></path></g></svg></button><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container view-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-maximize2 lucide-maximize-2"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></button></div></div></div></a></figure></div><p>The automation is coming. Anyone denying it is delusional.</p><p>If the industry managed to build human-free warehouses, then what stops it from building human-light forwarding companies? The answer is nothing. The technology exists. The economics make sense. The only question is whether companies will implement it intelligently or turn it into another cost-cutting disaster.</p><div class="subscription-widget-wrap-editor" data-attrs="{&quot;url&quot;:&quot;https://www.thechain.media/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe&quot;,&quot;language&quot;:&quot;en&quot;}" data-component-name="SubscribeWidgetToDOM"><div class="subscription-widget show-subscribe"><div class="preamble"><p class="cta-caption">The Chain is a reader-supported publication. To receive new posts and support our work, consider becoming a free or paid subscriber.</p></div><form class="subscription-widget-subscribe"><input type="email" class="email-input" name="email" placeholder="Type your email&#8230;" tabindex="-1"><input type="submit" class="button primary" value="Subscribe"><div class="fake-input-wrapper"><div class="fake-input"></div><div class="fake-button"></div></div></form></div></div><p>Anthony Miller at Wiser Logtech recently discussed this online and his conclusion was blunt. Anyone who thinks this is not coming is in for a shock.</p><p>The right approach should be replacing outsourcing, enhancing in-house teams, automating everything possible, and having people work from exceptions. What the industry will likely see instead is immediate cost cutting, big decisions made without proper planning, higher risk, and apologies when it does not work out.</p><p>The pattern is predictable. The consequences will be severe.</p><h2>The Warehouse Precedent</h2><p>Brian Newman, who works in supply chain transformation, stated the obvious. &#8220;It&#8217;s coming. If you can automate a warehouse you can automate the chain.&#8221;</p><p>Miller agreed. &#8220;You can automate any process that is highly repetitive and data driven, whether the data is deterministic or not.&#8221;</p><p>The warehouse automation wave proved the concept. Facilities now operate with minimal human intervention. Robots pick, pack, and move inventory. Systems route orders and manage exceptions. Humans handle edge cases and maintenance.</p><p>Freight forwarding involves similar work patterns. Repetitive data processing. Document verification. Status updates. Exception management. Rate quotes. Booking confirmations. Most of this work follows predictable patterns that AI can handle.</p><p>The technology is ready. The question is how companies will deploy it.</p><h2>The Big Tech Model</h2><p>Miller noted what has happened to big tech companies and their headcount. It feels like just a matter of time before sizeable forwarders start doing the same.</p><p>The parallel is direct. Tech companies overhired during growth periods. When efficiency became the priority, they cut deeply. Meta eliminated thousands of positions. Amazon reduced headcount. Google streamlined operations. Microsoft trimmed teams.</p><p>These companies had strong technology foundations. They still cut aggressively. Freight forwarders with weaker technology will face more pressure to reduce costs through automation.</p><p>Paul Claydon at a supply chain technology firm agreed with the assessment. Miller responded with what everyone is thinking. &#8220;I&#8217;m just waiting to see how the big 3PLs justify huge headcount cuts.&#8221;</p><p>The justification will be simple. Automation enables efficiency. Market conditions require cost reduction. Shareholders demand profitability. The cuts will come.</p><h2>The Human-Light Reality</h2><p>Mark Woolnough at a freight operations and recruitment firm made an important distinction. &#8220;Human free and human light are very different. Also human light is probably the accurate terminology.&#8221;</p><p>He pointed to Notion&#8217;s new agent updates as an eye opener. &#8220;Obviously not industry specific but if used by someone internally with the right mindset...&#8221;</p><p>The future is not human-free. The future is human-light. Small teams managing automated systems. People handling exceptions rather than routine work. Expertise concentrated in complex problem-solving rather than distributed across transactional tasks.</p><p>Peter Creeden, a global supply chain executive, emphasized that the shift is not just about automation but redesigning the forwarding business model around people and technology, not just cutting headcount.</p><p>He challenged the sector to rethink resilience. &#8220;It&#8217;s not just risk management but building capability, connectivity, and accountability. Human-light shouldn&#8217;t hollow out the workforce but empower skilled people to work with smarter systems and AI, improving exception handling, compliance, and trust, not cutting costs.&#8221;</p><p>Miller agreed but added a dose of realism. &#8220;But we both already know how this is going to play out. Hard lessons will be learned.&#8221;</p><h2>The Implementation Problem</h2><p>Stewart B. at Ziegler Group referenced a post about using AI to remove problems in supply chain as opposed to using it to figure out how to do workarounds quicker. &#8220;Both need deep planning, a progressive and adaptable strategy and excellent execution rooted in change management, which relies heavily on experience of the business. There&#8217;s lots of AI stuff flooding the industry, lots looks a bit clunky and gimmicky, but in the mid or long term, someone is going to start getting this stuff right.&#8221;</p><p>Miller&#8217;s response captured the industry&#8217;s frustration. &#8220;How to do the workarounds quicker. I swear, the amount of times I heard workarounds from forwarders using CargoWise. Hate it.&#8221;</p><p>He continued: &#8220;This comment needs to be turned into a standalone post. It is 100% true. But making the AI work in the right way will be hard. We&#8217;ve seen RTTVP fail. We&#8217;ve seen Blockchain fail. We&#8217;ve seen digital freight forwarding fail. I believe that we cannot afford to see AI fail, so it will succeed. I just hope that it will succeed in the right way, and not become another round of workarounds.&#8221;</p><p>The history of technology implementation in logistics is littered with failures. Real-time transit visibility promised transformation but delivered marginal value. Blockchain was supposed to revolutionize supply chain transparency but became a solution searching for a problem. Digital freight forwarding disrupted nothing.</p><p>AI cannot afford to follow the same path. The industry needs it to work.</p><h2>The Foundation Problem</h2><p>Francine Nielander at Lean Six Sigma consulting identified the critical prerequisite. &#8220;If you have your processes and data structured and you can automate or even optimize using AI, great. But those are not the companies that are in trouble and are likely to go for a quick AI fix. It&#8217;s not going to help you if you don&#8217;t have your ducks in a row. It will make processes even less transparent. Why was this order placed? I don&#8217;t know, the AI did it. Good luck in making sense of that.&#8221;</p><p>Miller agreed. &#8220;There is no quick fix in our industry and anyone suggesting otherwise needs to go do something else.&#8221;</p><p>Samil Shah raised the question directly. &#8220;Traditionally, getting value out of software required a good data foundation which in turn relied on good, consistent processes. With Agentic AI, can businesses skip the foundational work and jump straight to value?&#8221;</p><p>Miller&#8217;s answer was one word. &#8220;No.&#8221;</p><p>This is the trap waiting for companies desperate for cost savings. AI built on bad processes and dirty data will amplify problems, not solve them. Companies without solid foundations will implement AI and create expensive chaos.</p><p>Jennifer Morris at Ship Happens warned about the all-or-nothing approach. &#8220;I think the issue is many companies are just diving in head first and making it all or nothing. I have a feeling some of these legacy companies that were kind of flailing already and have turned to AI so they can make major cuts, not mentioning any names at all, are going to have problems. I think a more strategic approach and implementation will be what truly works. Not slap on AI, they barely understand, and hope for the best.&#8221;</p><p>Miller identified specific companies to watch. &#8220;I&#8217;m looking forward to seeing what DSV and Maersk do. I&#8217;m concerned about the likes of K+N and Ceva/Bollor&#233;. Also quietly excited about some smaller players like Geodis. We&#8217;ll see how it plays out, but yes, those who are diving in head first are in trouble. No point getting first mover advantage as an LSP. It&#8217;s about long term vision.&#8221;</p><h2>The Human Element</h2><p>Nacho Gil de Sagredo, who specializes in digital and sustainable supply chains, raised an important constraint. &#8220;I think this would work with human-free BCOs. While clients have people in procurement there&#8217;ll be people in sales and operations on the LSP side. I think this is why digital forwarding has not exploded yet. Humans like humans when there&#8217;s risk involved.&#8221;</p><p>The observation points to a fundamental limitation. As long as customers have human procurement teams, they will want human contact on the supplier side. Automation can handle routine transactions, but relationship management still requires people.</p><p>This creates the human-light model rather than human-free. Small teams managing customer relationships while AI handles operational execution.</p><p>John Vonk at Seeburger Benelux agreed. &#8220;Totally agree that human-light logistics is on the horizon. The challenge isn&#8217;t if we can do it, but how we do it responsibly. The companies that win will be those who blend automation with human judgment rather than swinging too hard on cost cutting.&#8221;</p><h2>The Execution Details</h2><p>Luca Conner at Pack&#8217;N provided practical guidance. &#8220;The sweet spot is automation for the routine and people for the weird stuff. The mistake is cutting seats before you can measure exceptions and promise kept. What&#8217;s worked for us is simple flows, clear owners, and tracking exception rate and cycle time before we pull labor out.&#8221;</p><p>He asked where the cleanest early wins are appearing: quotes, status pings, document checks, or invoice matching?</p><p>Miller responded that document checks is a tale as old as time with OCR solutions. It should improve greatly and remove the need for armies of people in low cost of labor countries doing manual validation. He identified customs and compliance as the biggest area to change. &#8220;It is a major drag on global supply chains.&#8221;</p><p>This practical approach, measuring exception rates and cycle times before removing headcount, represents responsible implementation. Most companies will skip this step.</p><p>Kenneth West identified the strategic shift. &#8220;Legacy tech stacks are hitting their ceiling. The shift from human-heavy to human-light isn&#8217;t just about cost, it&#8217;s about control. Agentic AI flips the model: instead of outsourcing complexity, companies can internalize intelligence. The ones who build exception-based workflows now will lead the next wave of operational resilience.&#8221;</p><p>Miller called out the buzzword density but acknowledged the underlying point. Companies that get this right will have operational advantages competitors cannot match.</p><h2>The Reality Check</h2><p>Ian Aguilar offered necessary skepticism. &#8220;I am a big fan of the current gen AI systems. Very useful, far more so than Google was historically. They do get things wrong frequently, though. Like, on the daily, and can be wrong in any given topic, even if you call them out on it multiple times. I&#8217;ve had both ChatGPT and Grok be wrong on simple addition, subtraction, multiplication even.&#8221;</p><p>His conclusion: &#8220;So far they are a nice to have tool, yet very far from a necessity. I absolutely could not trust business activities or decisions to it. Very interested to see where we are in 3-5 years though.&#8221;</p><p>Miller acknowledged the skepticism is healthy. But he also pointed to the rapid pace of improvement. What seems unreliable today may be dependable in months, not years.</p><p>Vlad Nikalayeu at Skypace identified the accountability problem. &#8220;You know what&#8217;s the main problem? It&#8217;s still people who&#8217;ll be eventually taking responsibility for what AI does.&#8221;</p><p>He imagined a future where LinkedIn profiles include AI performance metrics. Companies will want proof that candidates can work effectively with AI systems. The HR function transforms into validating human-AI collaboration capabilities.</p><h2>The Nearshoring Alternative</h2><p>Troels Daugaard noted that sizeable forwarders are using nearshoring instead to cut costs. Miller questioned why asset-light companies would want to nearshore.</p><p>The observation reveals competing cost-reduction strategies. Nearshoring moves work to lower-cost locations but maintains human headcount. AI reduces headcount but requires technology investment and change management.</p><p>Companies will pursue both. Nearshore operations will implement AI. The combination will drive costs down faster than either approach alone.</p><h2>The Warning</h2><p>If legacy ERP and SaaS players in logistics and supply chain are not using AI or planning AI functionalities, they are already late. The technology is moving faster than incumbent software providers can adapt.</p><p>If you are an LSP or BCO doing your own orchestration and you are already doing diligence or trialing solutions, you are ahead of the curve.</p><p>The gap between leaders and laggards will widen quickly. Companies that move now have time to learn and iterate. Companies that wait will face crisis implementations when competitive pressure becomes unbearable.</p><p>The human-light forwarding company is not a future possibility. It is a current reality being built by early movers. The question is not whether your company will follow. The question is whether you will move strategically or desperately.</p><p>Hard lessons are coming. Some companies will learn them in controlled experiments. Others will learn them through layoffs, customer losses, and operational failures.</p><p>The automation is here. The execution will separate winners from casualties.</p><div><hr></div><p><strong>Join the conversation on AI implementation in logistics, workforce transformation, and operational automation at <a href="https://www.chain.net/">Chain.NET</a>, where supply chain professionals share real-world AI deployment experiences, debate implementation strategies, and connect at events focused on responsible automation. The future is being built now.</strong></p><div class="subscription-widget-wrap-editor" data-attrs="{&quot;url&quot;:&quot;https://www.thechain.media/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe&quot;,&quot;language&quot;:&quot;en&quot;}" data-component-name="SubscribeWidgetToDOM"><div class="subscription-widget show-subscribe"><div class="preamble"><p class="cta-caption">The Chain is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber.</p></div><form class="subscription-widget-subscribe"><input type="email" class="email-input" name="email" placeholder="Type your email&#8230;" tabindex="-1"><input type="submit" class="button primary" value="Subscribe"><div class="fake-input-wrapper"><div class="fake-input"></div><div class="fake-button"></div></div></form></div></div>]]></content:encoded></item><item><title><![CDATA[Global Road Freight Faces a Perfect Storm of Capacity Crunch and Rising Costs]]></title><description><![CDATA[From Europe&#8217;s severe truck shortage to Asia&#8217;s tightening regulations, shippers confront a more complex and expensive transport landscape in 2026.]]></description><link>https://www.thechain.media/p/global-road-freight-faces-a-perfect</link><guid isPermaLink="false">https://www.thechain.media/p/global-road-freight-faces-a-perfect</guid><dc:creator><![CDATA[Global Supply Chain Council]]></dc:creator><pubDate>Thu, 05 Mar 2026 01:20:38 GMT</pubDate><enclosure url="https://substackcdn.com/image/fetch/$s_!3_lK!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F371c7395-d927-40e9-86cb-e2d3cbb7b374_1536x1024.png" length="0" type="image/jpeg"/><content:encoded><![CDATA[<div class="captioned-image-container"><figure><a class="image-link image2 is-viewable-img" target="_blank" href="https://substackcdn.com/image/fetch/$s_!3_lK!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F371c7395-d927-40e9-86cb-e2d3cbb7b374_1536x1024.png" data-component-name="Image2ToDOM"><div class="image2-inset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!3_lK!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F371c7395-d927-40e9-86cb-e2d3cbb7b374_1536x1024.png 424w, https://substackcdn.com/image/fetch/$s_!3_lK!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F371c7395-d927-40e9-86cb-e2d3cbb7b374_1536x1024.png 848w, https://substackcdn.com/image/fetch/$s_!3_lK!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F371c7395-d927-40e9-86cb-e2d3cbb7b374_1536x1024.png 1272w, https://substackcdn.com/image/fetch/$s_!3_lK!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F371c7395-d927-40e9-86cb-e2d3cbb7b374_1536x1024.png 1456w" sizes="100vw"><img src="https://substackcdn.com/image/fetch/$s_!3_lK!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F371c7395-d927-40e9-86cb-e2d3cbb7b374_1536x1024.png" width="1456" height="971" 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srcset="https://substackcdn.com/image/fetch/$s_!3_lK!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F371c7395-d927-40e9-86cb-e2d3cbb7b374_1536x1024.png 424w, https://substackcdn.com/image/fetch/$s_!3_lK!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F371c7395-d927-40e9-86cb-e2d3cbb7b374_1536x1024.png 848w, https://substackcdn.com/image/fetch/$s_!3_lK!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F371c7395-d927-40e9-86cb-e2d3cbb7b374_1536x1024.png 1272w, https://substackcdn.com/image/fetch/$s_!3_lK!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F371c7395-d927-40e9-86cb-e2d3cbb7b374_1536x1024.png 1456w" sizes="100vw" fetchpriority="high"></picture><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container restack-image"><svg role="img" width="20" height="20" viewBox="0 0 20 20" fill="none" stroke-width="1.5" stroke="var(--color-fg-primary)" stroke-linecap="round" stroke-linejoin="round" xmlns="http://www.w3.org/2000/svg"><g><title></title><path d="M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882"></path></g></svg></button><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container view-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-maximize2 lucide-maximize-2"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></button></div></div></div></a></figure></div><p>The global road transport market is entering 2026 under pressure from multiple directions. Capacity shortages in Europe have reached critical levels. Toll increases are rolling out across the continent. Extreme weather is disrupting networks with increasing frequency. And regulatory tightening in Asia and the Middle East is adding layers of complexity for cross-border operations.</p><p>DSV&#8217;s latest Road Transport Market Update provides a comprehensive view of these dynamics across four regions: Europe, the Americas, Asia-Pacific, and the Middle East and Africa. The report draws on data from sources including Eurostat, the European Central Bank, the IMF, and industry indices to paint a picture of a market where shippers face rising costs and shrinking options.</p><div class="subscription-widget-wrap-editor" data-attrs="{&quot;url&quot;:&quot;https://www.thechain.media/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe&quot;,&quot;language&quot;:&quot;en&quot;}" data-component-name="SubscribeWidgetToDOM"><div class="subscription-widget show-subscribe"><div class="preamble"><p class="cta-caption">The Chain is a reader-supported publication. To receive new posts and support our work, consider becoming a free or paid subscriber.</p></div><form class="subscription-widget-subscribe"><input type="email" class="email-input" name="email" placeholder="Type your email&#8230;" tabindex="-1"><input type="submit" class="button primary" value="Subscribe"><div class="fake-input-wrapper"><div class="fake-input"></div><div class="fake-button"></div></div></form></div></div><h2>Europe: Capacity Crunch Intensifies</h2><p>The numbers in Europe tell a stark story. The Transporeon Capacity Index dropped to 93.6 points in December 2025, marking a 5.5% decline year over year. By January 2026, it fell further to 90.4 points. This represents a severe capacity shortage that is forcing shippers to compete for available trucks.</p><p>Rates reflect this imbalance. The Spot Index rose to 146.1 points in December, up 4.3% from the previous year. Contract rates followed a similar trajectory, reaching 130.7 points with a 4.1% annual increase.</p><p>Economic conditions vary sharply across the region. Large Western economies including Germany, France, Italy, Spain, and the UK are expected to grow modestly, between 0% and 1%, with no real recovery from 2023-24 levels in sight. Eastern and Southeast Europe tells a different story. Poland, Bulgaria, the Baltics, and the Balkan states are expected to maintain growth above 2% through 2026-2027. Turkey projects growth exceeding 3.5%.</p><p>Labor costs continue rising. Wages grew by 3.3% in the Euro area and 3.7% across all EU countries when comparing Q3 2025 to Q3 2024. These increases, driven partly by inflation that reached higher levels in previous years, are now baked into transport pricing.</p><p>A wave of toll increases is compounding these cost pressures. Austria raised truck tolls in January 2026. Belgium increased Wallonia tolls by nearly 2% based on the index model. The Czech Republic implemented motorway toll increases of 0.7% to 1.5%, with Class I road tolls jumping 10.2% to 41.8%. France introduced network-dependent increases ranging from 0.82% to 0.95%. Poland added vehicle class-dependent increases of 4% to 6.6%.</p><p>More changes are coming. In March 2026, EU member states must introduce additional charges for air pollution caused by traffic. The Netherlands will launch distance-based truck tolling in June 2026, applying to highways and selected regional roads with rates varying by emission class.</p><h2>Americas: Trade Uncertainty Clouds the Outlook</h2><p>The U.S. economy remains sluggish but not recessive. GDP growth appeared solid in 2025, though the figures were distorted by volatile trade flows and tariff impacts.</p><p>Inflation held near 2.7% in December, still above the Federal Reserve&#8217;s target but not reaccelerating. Core inflation, excluding energy, food, alcohol, and tobacco, ran at approximately 2.7% year over year in the U.S., 2.5% in Canada, and 4.3% in Mexico.</p><p>Trade policy uncertainty has driven unusual swings in imports and exports, complicating historical comparisons and business planning. The labor market shows signs of stagnation. Unemployment dipped to 4.4%, but job growth slowed sharply, creating what analysts call a &#8220;low hire, low fire&#8221; environment.</p><p>Crude oil production is expected to remain close to 2025 averages on an annual basis in 2026 before falling by 340,000 barrels per day in 2027. Despite 13% fewer drilling rigs at the end of 2025 compared to the beginning of the year, productivity gains kept production at record highs. Over the next two years, sustained lower crude oil prices are expected as drilling and completion activity pulls back.</p><p>Consumer spending outperformed expectations during the holiday season, driving strong retail sales and rapid inventory drawdowns. The overall macro outlook tilts modestly optimistic, though policy uncertainty remains a key headwind.</p><h2>Asia-Pacific: Regulations Tighten</h2><p>GDP growth across Asia-Pacific is moderating, easing from approximately 4.5% in 2024-25 to around 4.1% in 2026. Growth remains uneven. India, Vietnam, and the Philippines are outperforming, while North Asia and Singapore see slower momentum.</p><p>Inflation has cooled but not normalized. Fuel, labor, compliance, and financing costs remain structurally higher than pre-2020 levels. This creates a baseline cost increase that is unlikely to reverse.</p><p>Malaysia has tightened enforcement on lorry overloading, introducing zero tolerance with nationwide inspections and stricter weight-limit checks. Penalties have increased significantly, including heavy fines, vehicle seizure, and license suspension for repeat offenders. Stricter load planning and documentation are now essential, with enforcement expected to remain sustained rather than temporary.</p><p>The Thailand-Cambodia border continues to experience policy-driven disruption, with geopolitical risk persisting. The November 2025 Thailand floods caused short-term localized disruption, though operations have normalized. Intra-Asia trucking shows stable lead times, but they remain lane-specific, and buffers are increasingly used as a hedge against uncertainty.</p><h2>Middle East and Africa: Divergent Fortunes</h2><p>Growth remains uneven across the region. GCC economies are outperforming South Africa despite a gradual recovery there. The UAE projects growth of 4% to 5%. Saudi Arabia expects 2.1% to 2.0%. South Africa forecasts approximately 1.7% in 2025, rising to 2% in 2026.</p><p>Regulatory changes are increasing operational complexity and cost pressures, particularly for cross-border road freight. Namibia will require a Trader Identification Number for all customs transactions starting April 2026, increasing administrative compliance burdens. Saudi Arabia has implemented market-linked diesel pricing and Saudization requirements, raising operating costs and creating labor constraints. South Africa has intensified permit and road compliance enforcement, adding security and operating costs for freight operators.</p><p>Demand remains strong in construction, retail, e-commerce, and healthcare distribution, particularly in Saudi Arabia. Specialized transport, including temperature-controlled freight, continues gaining traction across Middle East corridors. Security risks and infrastructure constraints in South Africa continue adding cost and operational complexity.</p><p>Fuel pricing across the region has largely shifted to market-linked models, resulting in ongoing cost volatility. Recent diesel price increases of approximately 8% in Saudi Arabia contrast with short-term fuel price relief announced in South Africa.</p><h2>Weather Becomes a Planning Factor</h2><p>Extreme weather is increasingly affecting road freight operations. Severe storms, snow, ice, and heavy rainfall in early 2026 disrupted transport flows across North America and Europe. Major hubs became harder to access. Regional networks slowed. Local deliveries and long-distance cross-border movements both experienced delays.</p><p>Climate patterns are shifting. Longer warm spells, heavier rainfall, and more frequent storms are putting extra pressure on infrastructure and increasing the risk of delays. Planning and forecasting must adapt quickly to these changing conditions. Supply chains may require more flexibility to keep goods moving when conditions change at short notice.</p><h2>Key Takeaways</h2><p>First, European road freight capacity has reached critically low levels. Shippers should expect continued rate pressure and should lock in contracts where possible. The combination of capacity shortage, toll increases, and labor cost growth creates a compounding effect on transport budgets.</p><p>Second, regulatory complexity is rising globally. From EU pollution charges to Malaysian overloading enforcement to Namibian customs requirements, compliance burdens are increasing. Companies operating cross-border routes need to invest in documentation, planning, and local expertise.</p><div><hr></div><p><strong>How is your organization adapting to these road freight market pressures?</strong> Are you seeing capacity constraints or rate increases in your key lanes? Share your experience in the comments.</p><p><em>Continue the discussion on Chain.NET (www.chain.net).</em></p><div class="subscription-widget-wrap-editor" data-attrs="{&quot;url&quot;:&quot;https://www.thechain.media/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe&quot;,&quot;language&quot;:&quot;en&quot;}" data-component-name="SubscribeWidgetToDOM"><div class="subscription-widget show-subscribe"><div class="preamble"><p class="cta-caption">The Chain is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber.</p></div><form class="subscription-widget-subscribe"><input type="email" class="email-input" name="email" placeholder="Type your email&#8230;" tabindex="-1"><input type="submit" class="button primary" value="Subscribe"><div class="fake-input-wrapper"><div class="fake-input"></div><div class="fake-button"></div></div></form></div></div>]]></content:encoded></item><item><title><![CDATA[The Blank Sailing Scandal]]></title><description><![CDATA[How Ocean Carriers Manipulate Markets While Forwarders Take the Blame]]></description><link>https://www.thechain.media/p/the-blank-sailing-scandal</link><guid isPermaLink="false">https://www.thechain.media/p/the-blank-sailing-scandal</guid><dc:creator><![CDATA[Global Supply Chain Council]]></dc:creator><pubDate>Sat, 10 Jan 2026 04:28:22 GMT</pubDate><enclosure url="https://substackcdn.com/image/fetch/$s_!pDYu!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe95ebb1c-b6fe-46fc-935c-2de6f1abce6d_1200x642.webp" length="0" type="image/jpeg"/><content:encoded><![CDATA[<div class="captioned-image-container"><figure><a class="image-link image2 is-viewable-img" target="_blank" href="https://substackcdn.com/image/fetch/$s_!pDYu!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe95ebb1c-b6fe-46fc-935c-2de6f1abce6d_1200x642.webp" data-component-name="Image2ToDOM"><div class="image2-inset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!pDYu!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe95ebb1c-b6fe-46fc-935c-2de6f1abce6d_1200x642.webp 424w, https://substackcdn.com/image/fetch/$s_!pDYu!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe95ebb1c-b6fe-46fc-935c-2de6f1abce6d_1200x642.webp 848w, https://substackcdn.com/image/fetch/$s_!pDYu!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe95ebb1c-b6fe-46fc-935c-2de6f1abce6d_1200x642.webp 1272w, https://substackcdn.com/image/fetch/$s_!pDYu!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe95ebb1c-b6fe-46fc-935c-2de6f1abce6d_1200x642.webp 1456w" sizes="100vw"><img src="https://substackcdn.com/image/fetch/$s_!pDYu!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe95ebb1c-b6fe-46fc-935c-2de6f1abce6d_1200x642.webp" width="1200" height="642" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/e95ebb1c-b6fe-46fc-935c-2de6f1abce6d_1200x642.webp&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:642,&quot;width&quot;:1200,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:103010,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/webp&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:false,&quot;topImage&quot;:true,&quot;internalRedirect&quot;:&quot;https://www.thechain.media/i/176616411?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F957868f2-9ae8-41f8-a6db-58f5728fa7f7_1200x642.webp&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" class="sizing-normal" alt="" srcset="https://substackcdn.com/image/fetch/$s_!pDYu!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe95ebb1c-b6fe-46fc-935c-2de6f1abce6d_1200x642.webp 424w, https://substackcdn.com/image/fetch/$s_!pDYu!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe95ebb1c-b6fe-46fc-935c-2de6f1abce6d_1200x642.webp 848w, https://substackcdn.com/image/fetch/$s_!pDYu!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe95ebb1c-b6fe-46fc-935c-2de6f1abce6d_1200x642.webp 1272w, https://substackcdn.com/image/fetch/$s_!pDYu!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe95ebb1c-b6fe-46fc-935c-2de6f1abce6d_1200x642.webp 1456w" sizes="100vw" fetchpriority="high"></picture><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container restack-image"><svg role="img" width="20" height="20" viewBox="0 0 20 20" fill="none" stroke-width="1.5" stroke="var(--color-fg-primary)" stroke-linecap="round" stroke-linejoin="round" xmlns="http://www.w3.org/2000/svg"><g><title></title><path d="M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882"></path></g></svg></button><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container view-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-maximize2 lucide-maximize-2"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></button></div></div></div></a></figure></div><p><strong>An investigation reveals how the shipping industry&#8217;s double standard allows carriers to cancel services with impunity while forwarders face consequences for the same actions</strong></p><p>The numbers are damning. Dozens of sailings are canceled from China to the US last month. And much more in the opposite direction. These are not emergency cancellations driven by crisis. This is deliberate market manipulation dressed up as business strategy.</p><div class="subscription-widget-wrap-editor" data-attrs="{&quot;url&quot;:&quot;https://www.thechain.media/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe&quot;,&quot;language&quot;:&quot;en&quot;}" data-component-name="SubscribeWidgetToDOM"><div class="subscription-widget show-subscribe"><div class="preamble"><p class="cta-caption">The Chain is a reader-supported publication. To receive new posts and support our work, consider becoming a free or paid subscriber.</p></div><form class="subscription-widget-subscribe"><input type="email" class="email-input" name="email" placeholder="Type your email&#8230;" tabindex="-1"><input type="submit" class="button primary" value="Subscribe"><div class="fake-input-wrapper"><div class="fake-input"></div><div class="fake-button"></div></div></form></div></div><p>A recent post by <a href="https://www.linkedin.com/in/nilswalle/">Nils Walle</a>, co-founder of RWSolutions, exposed the uncomfortable reality that few in the shipping industry want to acknowledge. &#8220;If forwarders cut services, we lose customers. When carriers do it, they call it strategy,&#8221; he wrote. The statement ignited a firestorm of responses that reveal the deep structural imbalances in global shipping.</p><p>Welcome to liner shipping 2026, where blank sailings have become the industry&#8217;s favorite tool for artificial scarcity.</p><h2>The Mechanism of Control</h2><p>The term &#8220;blank sailing&#8221; sounds technical and benign. The reality is far more calculated. Carriers cancel scheduled voyages not because of operational necessity, but because margins are below breakeven and demand is soft. Instead of adjusting their business models, they pull their favorite lever: cut capacity, tighten the tap, and call it &#8220;rate stability.&#8221;</p><p>Tim Gundlach at a US logistics firm cut through the euphemisms. &#8220;They are a cartel, all acting together,&#8221; he stated bluntly. The accusation is serious, but the evidence supports it.</p><p>Fresh data shows cancellation rates higher than during COVID. But this time there is no global pandemic forcing the hand of carriers. Margins are under pressure, and carriers are responding by manufacturing scarcity.</p><p>&#8220;COVID taught the carriers: disruption equals dollars,&#8221; observed Steven Gibbons at Austorient Freight. &#8220;Largest profits in history. Now there is a cry for significant losses. Down from USD 10 billion to a meager USD 8.9 billion profit.&#8221;</p><p>The scale of those profits reveals the motivation. When disruption proved lucrative during the pandemic, carriers learned that controlling supply could be more profitable than competing on service.</p><h2>The Double Standard</h2><p>The most striking aspect of this pattern is the glaring double standard between how carriers and forwarders are judged for identical actions.</p><p>&#8220;When forwarders adapt, it&#8217;s called desperation. When carriers manipulate, it&#8217;s called market discipline,&#8221; said Jose Coronel at All Trans Cargo. &#8220;The double standard couldn&#8217;t be clearer.&#8221;</p><p>Evan Ford at GLI provided additional context. &#8220;There&#8217;s definitely a double standard when it comes to how forwarders and carriers are judged. When carriers pull capacity it&#8217;s &#8216;strategy.&#8217; When forwarders adjust it&#8217;s &#8216;poor service.&#8217; But the reality is carriers control the supply side. When rates drop below cost cutting sailings is their only real lever to keep things stable. Forwarders don&#8217;t have that option. If we cut service we lose customers plain and simple.&#8221;</p><p>The asymmetry in power is stark. Forwarders operate in a fragmented, highly competitive market where thousands of companies compete for business. Carriers operate in a consolidated oligopoly where a handful of mega-alliances control global capacity.</p><p>Rohit Singh at Zipaworld summarized the frustration. &#8220;When we adjust, it&#8217;s bad service. When they adjust, it&#8217;s smart economics. Double standards sail faster than any vessel these days.&#8221;</p><h2>The Asset Ownership Defense</h2><p>Defenders of carrier practices point to a fundamental difference: asset ownership. Carriers own billions of dollars worth of ships. Forwarders are intermediaries. This distinction, they argue, justifies different treatment.</p><p>Frank Hellberg made this point directly. &#8220;There is a huge difference between an asset light service provider and a heavy asset company, may be some food for thought.&#8221;</p><p>The argument has surface appeal. Carriers do face enormous capital costs. Operating container ships requires massive investment. But does capital intensity justify market manipulation?</p><p>Aditya Modi at Globus Transitos defended the business rationale. &#8220;Any business owner would want there capex heavy asset to return good numbers. Apart from that no owner would want there asset to be underutilised in case of weak demand. Even large scale factories reduce their production capacity during weak demand. As you mentioned, margins are negative. Which business owner would like this scenario to run an asset with negative numbers? None. Long term its not sustainable. This is the reason carriers like Hanjin went bankrupt.&#8221;</p><h2>When Asset Management Becomes Market Manipulation</h2><p>The question is not whether carriers have the right to manage their assets profitably. The question is whether coordinated capacity cuts by an oligopoly cross the line from asset management into market manipulation.</p><p>Andrew Konovalenko at Keen &amp; Able Logistics raised the legal implications. &#8220;When forwarders got together to control market that was labeled as price fixing and received huge fines. I don&#8217;t understand why when railways do it or lines buy other lines they do not get burnt for monopolizing or price fixing when removing sail as that is and should be illegal as they are forcing shortage and causing increases.&#8221;</p><p>Glenn Hayes echoed the concern. &#8220;I have always wondered why there is nothing in the competition commission about blank sailings.&#8221;</p><p>The parallel to other industries is instructive. When trucking companies coordinate to reduce capacity and increase rates, regulators investigate. When airlines collude on pricing, governments intervene. But when ocean carriers collectively manage capacity across global trade lanes, analysts call it &#8220;market discipline.&#8221;</p><p>Ken Davis pointed to the accountability gap. &#8220;Just business as usual when you have no accountability to anyone but shareholders. 2025 is not unique.&#8221;</p><h2>The Cost of Deception</h2><p>Beyond the economics lies a more insidious problem: deception. Christian Raeuber identified a practice that crosses ethical lines. &#8220;For me the topic is not about a business decision of the carrier, totally fine with me. But the issue is that even during the time of sale the carrier already knows it&#8217;ll cancel a sailing but still sells an ETA that is fake just to get the shipment. No carrier will close deal if they said 60 days transit. And the cost of delay is being outsourced to the shipper and consignee who would have probably been happy to pay for a premium for an on-time arrival.&#8221;</p><p>This is where operational flexibility becomes fraud. Carriers sell capacity they know they will not provide, collect the revenue, then cancel the sailing after securing the booking. The customer bears the cost of delay while the carrier avoids the cost of operation.</p><p>Henk Evelaar at HenX described the daily reality. &#8220;On a daily basis we are confronted with severe delays, blank sailings and omitted ports. The shipper pays the price, while the liners hide behind general conditions. Communications are at an absolute low, online info is not up to date and liners are not responsive to our cries for help, in fact charge us extra for COD that we require due to the liner&#8217;s failures. The larger in size, the harder it is for them to provide proper customer service. Horrible service of arrogant bullies that are too big to be held responsible.&#8221;</p><h2>The Market Power Question</h2><p>Several respondents challenged whether this constitutes unfair market power or simply reflects supply and demand dynamics.</p><p>Nikki Jensen posed the question directly. &#8220;Are you complaining that the carriers are reducing supply in response to demand? Or is it just because it&#8217;s called something else? Let&#8217;s assume you produce butter, and due to oversupply in the market, the price drops. Would you just keep producing more butter and increase your losses? Isn&#8217;t this simply market forces at work?&#8221;</p><p>These arguments would be more compelling in a competitive market. But the shipping industry is not competitive in the traditional sense. Decades of consolidation have created an oligopoly where a handful of players control the majority of capacity on major trade lanes.</p><p>Walle responded to this defense in the comment thread. &#8220;Fair point and yes, seasonality like Chinese New Year always plays a role. But the pattern here goes beyond that. When blank sailings start well before holidays, stretch across multiple trade lanes, and coincide with attempts to &#8216;restore rate stability,&#8217; it&#8217;s not just demand fluctuation, it&#8217;s deliberate capacity control.&#8221;</p><p>He continued: &#8220;During COVID, blank sailings didn&#8217;t cause $30K per container alone, but they absolutely amplified it by tightening space when demand surged and was badly needed. Everyone made mad money of course, freight forwarders included, but at what cost and expense? That&#8217;s the real point: selective supply management that only one side of the industry can pull off without consequences.&#8221;</p><h2>The Oligopoly Problem</h2><p>Ricardo Martinez Hoffmann at Manreefer provided historical context. &#8220;Leading media outlets and journalists such as Lloyd&#8217;s List, Alphaliner, G. Miller, and Sam Chambers, along with respected shipping economists like Olaf Merk and Rafael Llerena, have written extensively many years ago about the consequences of the liner consolidation process and the emergence of an oligopoly.&#8221;</p><p>The consolidation has fundamentally changed market dynamics. When there were dozens of carriers competing, no single company could manipulate capacity. Today, when three major alliances control the vast majority of capacity on key routes, coordinated capacity management becomes possible.</p><p>Mustafa Badshah at DP World acknowledged the reality. &#8220;It&#8217;s definitely a business move. Most industries have top players who can shape the market like this. Honestly, if forwarders could, they probably would too, but they can&#8217;t afford to cut services. Too many players, no unity, and customers would just go elsewhere.&#8221;</p><p>La C. at Oscar Track provided a freight forwarder&#8217;s perspective. &#8220;Us forwarders even the smallest are diversified enough where it isn&#8217;t a one-horse race. There are also millions of us to self-cannibalize and take our place. We are heavily unregulated and barrier to entry is so low that we are not considered professionals. In short we are all expandable and easily replaced. Carriers are totally opposite.&#8221;</p><h2>The Transparency Problem</h2><p>Even those who accept the business rationale for capacity adjustments acknowledge that transparency is lacking.</p><p>Evan Ford at GLI suggested a path forward. &#8220;At the end of the day it&#8217;s less about fairness and more about transparency. If carriers communicated these blank sailings as planned resets instead of surprise cancellations there&#8217;d be a lot more trust across the board.&#8221;</p><p>Aaron Poole at BR International identified the core issue. &#8220;The &#8216;discipline&#8217; narrative has become the industry&#8217;s polite way of saying &#8216;we&#8217;ll manage profits, not performance.&#8217; When forwarders streamline, it&#8217;s called &#8216;service erosion.&#8217; When carriers cancel sailings, it&#8217;s called &#8216;capacity management.&#8217; Same move, different PR. The irony is, true stability comes from reliability, not artificial scarcity. Customers don&#8217;t want volatility dressed as control. They want trust, consistency, and honesty in the chain.&#8221;</p><h2>The Economic Reality</h2><p>Not all critics dismiss the economic pressures carriers face. Len Phillips warned of the alternative. &#8220;And if shipping lines run deficits and collapse, all tonnage is gone and rates would rise faster than a measured adjustment to tonnage. Then there would be more complaints about pricing. The real issue is that no one wants to pay sustainable rate right across the supply chain leading to asset management that causes disruptions.&#8221;</p><p>Aaryav Gupta at Pridel made a similar point. &#8220;If carriers don&#8217;t do blanks to maintain the rates, we all would be going blanks with our bank accounts. I mean it really doesn&#8217;t make sense to operate below a certain number and it&#8217;s their asset, they have to make money over the huge cost invested. If there are no blank sailings, all we will see is $250 per 40-foot container from Asia to Europe and that my friend is not good for anyone.&#8221;</p><p>The economic tension is real. Carriers need sustainable returns. But the question remains whether coordinated capacity cuts by an oligopoly represent fair market adjustment or market manipulation that harms the broader supply chain.</p><h2>The Path Forward</h2><p>The question is whether regulators will finally acknowledge what the industry already knows: blank sailings are not just business decisions. They are tools of market control that only one side of the supply chain can wield without consequence.</p><p>Until that changes, forwarders will continue to bear the blame for delays caused by carrier decisions, customers will pay inflated rates justified by artificial scarcity, and the double standard will persist.</p><p>As one industry observer noted, &#8220;When we adjust, it&#8217;s bad service. When they adjust, it&#8217;s smart economics.&#8221;</p><p>The shipping industry has learned to profit from disruption. The only question now is how long regulators will allow it to continue.</p><div><hr></div><p><strong>Join the conversation on global supply chain transparency and accountability at <a href="https://www.chain.net/">Chain.NET</a>, where logistics professionals debate industry practices, share insights on market dynamics, and connect at events focused on building a more equitable supply chain. The discussion continues beyond the headlines.</strong></p><div class="subscription-widget-wrap-editor" data-attrs="{&quot;url&quot;:&quot;https://www.thechain.media/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe&quot;,&quot;language&quot;:&quot;en&quot;}" data-component-name="SubscribeWidgetToDOM"><div class="subscription-widget show-subscribe"><div class="preamble"><p class="cta-caption">The Chain is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber.</p></div><form class="subscription-widget-subscribe"><input type="email" class="email-input" name="email" placeholder="Type your email&#8230;" tabindex="-1"><input type="submit" class="button primary" value="Subscribe"><div class="fake-input-wrapper"><div class="fake-input"></div><div class="fake-button"></div></div></form></div></div>]]></content:encoded></item><item><title><![CDATA[DSV–DB Schenker: Scale at Any Cost?]]></title><description><![CDATA[What a 13,000-Person Layoff Says About the Future of Freight Forwarding]]></description><link>https://www.thechain.media/p/dsvdb-schenker-scale-at-any-cost</link><guid isPermaLink="false">https://www.thechain.media/p/dsvdb-schenker-scale-at-any-cost</guid><dc:creator><![CDATA[Global Supply Chain Council]]></dc:creator><pubDate>Mon, 10 Nov 2025 07:59:16 GMT</pubDate><enclosure url="https://substackcdn.com/image/fetch/$s_!iaJy!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa57e1da7-34ea-4c5e-b9ce-256a430a457b_1534x1016.png" length="0" type="image/jpeg"/><content:encoded><![CDATA[<div class="captioned-image-container"><figure><a class="image-link image2 is-viewable-img" target="_blank" href="https://substackcdn.com/image/fetch/$s_!iaJy!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa57e1da7-34ea-4c5e-b9ce-256a430a457b_1534x1016.png" data-component-name="Image2ToDOM"><div class="image2-inset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!iaJy!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa57e1da7-34ea-4c5e-b9ce-256a430a457b_1534x1016.png 424w, https://substackcdn.com/image/fetch/$s_!iaJy!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa57e1da7-34ea-4c5e-b9ce-256a430a457b_1534x1016.png 848w, https://substackcdn.com/image/fetch/$s_!iaJy!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa57e1da7-34ea-4c5e-b9ce-256a430a457b_1534x1016.png 1272w, https://substackcdn.com/image/fetch/$s_!iaJy!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa57e1da7-34ea-4c5e-b9ce-256a430a457b_1534x1016.png 1456w" sizes="100vw"><img src="https://substackcdn.com/image/fetch/$s_!iaJy!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa57e1da7-34ea-4c5e-b9ce-256a430a457b_1534x1016.png" width="1534" height="1016" 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srcset="https://substackcdn.com/image/fetch/$s_!iaJy!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa57e1da7-34ea-4c5e-b9ce-256a430a457b_1534x1016.png 424w, https://substackcdn.com/image/fetch/$s_!iaJy!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa57e1da7-34ea-4c5e-b9ce-256a430a457b_1534x1016.png 848w, https://substackcdn.com/image/fetch/$s_!iaJy!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa57e1da7-34ea-4c5e-b9ce-256a430a457b_1534x1016.png 1272w, https://substackcdn.com/image/fetch/$s_!iaJy!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa57e1da7-34ea-4c5e-b9ce-256a430a457b_1534x1016.png 1456w" sizes="100vw" fetchpriority="high"></picture><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container restack-image"><svg role="img" width="20" height="20" viewBox="0 0 20 20" fill="none" stroke-width="1.5" stroke="var(--color-fg-primary)" stroke-linecap="round" stroke-linejoin="round" xmlns="http://www.w3.org/2000/svg"><g><title></title><path d="M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882"></path></g></svg></button><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container view-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-maximize2 lucide-maximize-2"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></button></div></div></div></a></figure></div><p>The news is stark: DSV - now the world&#8217;s largest freight forwarder after leapfrogging Kuehne+Nagel and DHL - plans to cut <strong>6&#8211;8% of its workforce</strong> following its merger with <strong>DB Schenker</strong>. That&#8217;s <strong>10,000 to 13,000 people</strong>. The consolidation wave doesn&#8217;t stop there; <strong>Scan Global Logistics</strong> also flagged cost-cutting. The surface-level narrative is familiar&#8212;&#8220;scale,&#8221; &#8220;efficiency,&#8221; &#8220;synergies.&#8221; But below the press releases is a more complicated story about promises, power, and what customers and employees should expect next.</p><p>As <strong>Jai Sankar V.</strong> framed it with bracing clarity: <em>&#8220;DSV&#8217;s mergers come with a standard script: buy big, integrate fast, and trim the fat. The 6&#8211;8% staff cut at DB Schenker? Hardly shocking&#8212;it&#8217;s practically part of the welcome package.&#8221;</em> That pattern is echoed by multiple voices below - from those who&#8217;ve lived through past DSV deals to shippers already making contingency plans.</p><div class="subscription-widget-wrap-editor" data-attrs="{&quot;url&quot;:&quot;https://www.thechain.media/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe&quot;,&quot;language&quot;:&quot;en&quot;}" data-component-name="SubscribeWidgetToDOM"><div class="subscription-widget show-subscribe"><div class="preamble"><p class="cta-caption">The Chain is a reader-supported publication. To receive new posts and support our work, consider becoming a free or paid subscriber.</p></div><form class="subscription-widget-subscribe"><input type="email" class="email-input" name="email" placeholder="Type your email&#8230;" tabindex="-1"><input type="submit" class="button primary" value="Subscribe"><div class="fake-input-wrapper"><div class="fake-input"></div><div class="fake-button"></div></div></form></div></div><p>This is my opinionated read of what&#8217;s happening, filtered through dozens of on-the-ground reactions from practitioners, customers, and competitors. It&#8217;s not just about one merger. It&#8217;s about what &#8220;number one&#8221; really means, who benefits&#8212;and who pays.</p><div><hr></div><h2>M&amp;A reality check: &#8220;mergers&#8221; are usually takeovers</h2><p>We can parse the language, but practitioners know how this movie ends. <strong>Alex Cawthorne</strong> is blunt: <em>&#8220;Takeovers by existing large corporate entities (despite being called &#8216;mergers&#8217; which they really rarely are) happen to achieve growth through aggressive acquisition. It&#8217;s basically buying a customer base and assets then stripping out the parts you want and discarding the rest.&#8221;</em> The euphemism &#8220;synergies&#8221; translates, in practice, to duplicate roles, overlapping stations, and immediate pressure to deliver ROI.</p><p><strong>Yanto J.</strong> reduces it to a three-word playbook: <em>&#8220;Common practice Post merger. ROI from day 1.&#8221;</em> And <strong>Ralf Kuberg</strong> adds the cold arithmetic: <em>&#8220;Synergies. A deal of this kind without potential savings doesn't make sense, does it? Sad for the employees though.&#8221;</em></p><p>Is that morally satisfying? No. Is it operationally predictable? Yes. And if you&#8217;re a shipper, the predictability is a gift - you can plan around it.</p><div><hr></div><h2>The national optics (and politics) won&#8217;t soften the landing</h2><p><strong>Arne Koehler</strong> underlined a detail pundits glossed over: <em>&#8220;Schenker was a 100% German Government owned Company. How stupid that is! It was clear to everyone in the industry that this will come.&#8221;</em> Fair or not, the optics of a Danish champion absorbing a German institution invite national pride and political subtext. <strong>Gal Dayan</strong> sharpened the critique: <em>&#8220;Denmark never hesitates to lecture the world on protecting the weak and vulnerable, yet here we see one of its flagship companies hollowing out a German institution and discarding thousands of hardworking people.&#8221;</em></p><p>Strip the flags and the principle remains: the acquiring company protects its own core, culture, and cost base first. The acquired entity&#8217;s roles are, by definition, the ones under the microscope.</p><div><hr></div><h2>The human ledger: &#8220;You&#8217;re just a number&#8221; - until customers notice</h2><p>If the spreadsheets treat people like rows, the market remembers names and faces. <strong>Maria K&#246;hler</strong> puts it plainly: <em>&#8220;Viking styles&#8230; you&#8217;re just a number. They call this &#8216;synergies&#8217;. Today is me, tomorrow is you.&#8221;</em></p><p>The leadership story - values, people, purpose - will be tested in thousands of micro-moments as account teams are reshuffled and phones start going to voicemail. <strong>Steve Fitzgerald</strong> captured the frontline disruption: <em>&#8220;So their clients, accustomed to same staff handling their business for years, suddenly see their contact disappear&#8230; the people who actually do the work will be the ones that suffer the most.&#8221;</em></p><p>And that &#8220;family&#8221; metaphor so beloved in corporate town halls? <strong>Anita Blackwelder</strong> offers the unvarnished reminder: <em>&#8220;Nothing new here. Employees are never truly family&#8230; Now the folks they keep can work twice as hard to make up for extra work and less people.&#8221;</em></p><div><hr></div><h2>&#8220;We&#8217;re beautiful, we&#8217;re big&#8230;&#8221; - but are we better?</h2><p>Past mega-mergers in ocean and forwarding are a cautionary tale. <strong>Andrea Zerbinati</strong> recounts the lived pattern: <em>&#8220;I&#8217;ve lived through two mergers (CAST/CP Ships &amp; P&amp;O Nedlloyd/Maersk)&#8230; we&#8217;re beautiful, we&#8217;re big, everything will be better and then hundreds or thousands of people lose their jobs&#8230; ok, you&#8217;re number one&#8230; what now?&#8221;</em></p><p>Her critique is not anti-business; it&#8217;s anti-complacency. Size changes your cost curve, but it can also degrade service during the digestion phase. The question customers should ask: <strong>Will my service level, responsiveness, and exception-handling improve in the next 6&#8211;12 months&#8212;or degrade?</strong></p><p><strong>Steve Butler</strong> is already telegraphing the answer: <em>&#8220;The planned 6&#8211;8% staff cut&#8230; could disrupt operations and morale, possibly impacting service quality during the transition. Good time for customers to look elsewhere.&#8221;</em></p><div><hr></div><h2>The &#8220;values&#8221; gap: ESG rhetoric vs. layoff reality</h2><p>There&#8217;s a widening credibility gap between corporate purpose statements and post-merger actions. <strong>Gal Dayan</strong> pulls no punches: <em>&#8220;All the polished speeches about &#8216;values and people&#8217;&#8230; have now been exposed&#8230; eliminating middle management and cutting jobs to deliver &#8216;synergies&#8217; for shareholders&#8230; This is not value creation &#8212; it is corporate cannibalism dressed up as strategy.&#8221;</em></p><p><strong>Fares Bond</strong> echoes the frustration: <em>&#8220;It&#8217;s deeply disappointing to witness large corporations treat their workforce as mere headcount&#8230; despite repeated claims about a people-first culture.&#8221;</em></p><p>If your brand courts customers with sustainability, &#8220;protect the vulnerable,&#8221; and &#8220;people first&#8221; campaigns, then <strong>mass redundancies during integration</strong> will be judged not just by finance&#8212;but by procurement teams under pressure to reconcile supplier choice with corporate ESG claims. As <strong>Jonas Br&#252;ckner</strong> challenges shippers: <em>&#8220;It might be a good time&#8230; It&#8217;s one thing to talk about social and ecological responsibilities and a whole other part to actually &#8216;walk the talk&#8217;.&#8221;</em></p><div><hr></div><h2>The rumor mill: 6&#8211;8% or much more?</h2><p>Several practitioners believe the headline number understates the real target. <strong>Hasan Subasic</strong> warns: <em>&#8220;They will cut more than 13,000&#8230; at least 40%&#8230; some of them left already before the merge.&#8221;</em> <strong>Dan Wustefeld</strong> adds a telling timeline: <em>&#8220;DSV started &#8216;trimming the fat&#8217; in 2023 for this acquisition. Quarterly reductions of staff to make room for the keepers from DB.&#8221;</em></p><p>Take any specific percentage with caution, but don&#8217;t ignore the <strong>directional</strong> logic: attrition and &#8220;quiet&#8221; reductions often begin before the ink dries, and redundancy programs tend to come in waves. If you&#8217;re a shipper, treat the next year as <strong>unstable capacity</strong> on the people side, even if network capacity looks fine on paper.</p><div><hr></div><h2>Competitors are already moving: both for customers and talent</h2><p>Market share abhors a vacuum. Within days of the announcement, <strong>Rifat Uddin</strong> (Kuehne+Nagel) posted: <em>&#8220;I encourage any DSV/SCHENKER's customers&#8230; to contact me directly.&#8221;</em> <strong>Timo Schmitz</strong> made a similar play: <em>&#8220;Any DSV or Schenker customers who may feel concerned&#8230; are warmly invited to reach out to me&#8230; our Integrator Strategy.&#8221;</em></p><p>And it&#8217;s not just customers. <strong>Timo Schmitz</strong> again: <em>&#8220;It is also fantastic to see so many capable and professional colleagues from Schenker joining Maersk.&#8221;</em> Smaller players see the same opening. <strong>Robert Dickinson</strong> of Toga Group reports a surge: <em>&#8220;The sheer number of CVs from staff&#8230; landing on my desk&#8230; As for customers, they&#8217;re voting with their feet and changing carriers&#8230; Excellent news for small forwarders like us.&#8221;</em></p><p>In every consolidation, two markets spring into action: <strong>the customer market</strong> (who can maintain service during turbulence?) and <strong>the labor market</strong> (where do displaced or anxious high-performers land?). Expect both to remain active for months.</p><div><hr></div><h2>&#8220;Why not keep the people?&#8221; - because the model demands it</h2><p>A fair ethical challenge keeps popping up. <strong>Gurvinder Singh</strong> asks: <em>&#8220;If DSV is capable of acquiring Schenker and their business then why is it not capable of retaining the employees??&#8221;</em> <strong>Melissa Cooper</strong> adds: <em>&#8220;Great question that we were all wondering!&#8221;</em></p><p>There&#8217;s no mystery - only math. <strong>Paul Hazell</strong> hints at the uncomfortable distribution: <em>&#8220;And guess what the percentage will be of ex Schenker versus DSV employees in that number....&#8221;</em> The acquiring firm&#8217;s org chart wins. Duplicate roles lose. Private-equity-style discipline&#8212;whether or not PE money is involved&#8212;rewards <strong>speed to synergy</strong> over redundancy-buffered continuity. As <strong>Uwe Ratzmann</strong> notes: <em>&#8220;Lay offs is the beauty of private equity money.&#8221;</em></p><p>It&#8217;s not pretty, but it is <strong>predictable</strong>. Which means both shippers and employees should act on it&#8212;early.</p><div><hr></div><h2>Customer service during integrations: the Achilles&#8217; heel</h2><p>A paradox of large integrations is that the <strong>customers most at risk</strong> are the ones most loyal to legacy teams and workflows. <strong>Beatrix Vonbun</strong> connects the dots: <em>&#8220;Customer relationships are usually primarily between people. It is the employees who deliver quality.&#8221;</em> When those people churn, <strong>service variance</strong> spikes: quotes slow down, exceptions sit longer, and pro-active communication gives way to firefighting.</p><p><strong>Benjo Sim</strong> summarizes the cynicism bred by experience: <em>&#8220;Merger, the evil scheme of businesses&#8230; increase client base and trim costs by cutting workforce.&#8221;</em> On the ground that often means <strong>projects slip</strong> and <strong>hotlines run cold</strong>.</p><p>For shippers, the practical question isn&#8217;t philosophical; it&#8217;s operational: <strong>What is my continuity plan when my key contacts change&#8212;twice&#8212;in 90 days?</strong> If you don&#8217;t have an answer, make one this week.</p><div><hr></div><h2>The opportunity for challengers (and why some shippers will still stay)</h2><p>Every consolidation creates a <strong>split screen</strong>: churned accounts on one side, sticky contracts on the other. <strong>Steve Butler</strong> and <strong>Robert Dickinson</strong> are already fishing where the fish are biting. So are the giants: <strong>Timo Schmitz</strong> (Maersk) is recruiting <strong>both</strong> customers and talent.</p><p>Yet many shippers will <strong>not</strong> move quickly. Why? Switching costs (integrations, EDI, compliance), multi-year global MSAs with penalties, and risk aversion. As <strong>Jake Archdeacon</strong> dryly queries the branding&#8212;<em>&#8220;&#8216;Freight Forwarding leader&#8217;?&#8221;</em>&#8212;there&#8217;s a hint of skepticism that being #1 delivers better service <strong>now</strong> rather than <strong>later</strong>.</p><p>Challengers who win in this window will pair <strong>credible continuity</strong> (&#8220;same ops team by Monday&#8221;) with <strong>measurable resilience</strong> (dual-sourcing lanes, mirrored data, clear KPIs). If you&#8217;re smaller, emphasize <strong>access</strong> and <strong>responsiveness</strong>. If you&#8217;re large, emphasize <strong>stability</strong> and <strong>bench depth</strong>. Both beats can land if you make the trade-offs explicit.</p><div><hr></div><h2>Are layoffs a failure of leadership - or simply industrial logic?</h2><p>Two opposing narratives emerged. <strong>Eldi Alimehmeti</strong> argues layoffs signal a <strong>strategy deficit</strong>: <em>&#8220;Instead of delivering stronger numbers, the merged firms have relied on cutting jobs to mask their shortcomings&#8230; weak leadership and a lack of vision for sustainable expansion.&#8221;</em></p><p>On the other side, <strong>Alex Cawthorne</strong> argues layoffs are <strong>inseparable</strong> from M&amp;A logic. You don&#8217;t buy a competitor to run two payrolls forever. You buy to <strong>remove duplication</strong>, expand volume, and normalize the new cost base. That&#8217;s not villainy; it&#8217;s the <strong>mechanics of scale</strong>.</p><p>My take: both can be true. Layoffs are often <strong>industrial logic</strong>&#8212;but the <strong>how</strong> and <strong>when</strong> reveal leadership quality. Communicate early, protect frontline continuity, be honest about timelines, and don&#8217;t greenwash the process with &#8220;family&#8221; rhetoric. Most people can handle hard news; they resent <strong>spin</strong>.</p><div><hr></div><h2>What shippers should do in the next 90 days</h2><ol><li><p><strong>Audit your exposure.</strong> Map lanes, volumes, and <strong>named contacts</strong> tied to DSV/DB Schenker. Flag where a single point of failure exists (one person, one station, one specialty service).</p></li></ol><blockquote><p>As <strong>Steve Butler</strong> warned: <em>&#8220;Good time for customers to look elsewhere.&#8221;</em></p></blockquote><ol><li><p><strong>Dual-source critical lanes.</strong> Even if you don&#8217;t move all the volume, light up a <strong>parallel channel</strong>. You&#8217;re buying an option, not a divorce.</p></li></ol><blockquote><p><strong>Beatrix Vonbun</strong> notes competitors are <em>&#8220;delighted to work with former DSV and Schenker customers.&#8221;</em></p></blockquote><ol><li><p><strong>Insist on named service SLAs during the transition.</strong> Not just transit times&#8212;<strong>response times, exception-handling, escalation paths</strong>. Put it in writing.</p></li><li><p><strong>Leverage the moment on rates&#8212;but don&#8217;t be fooled.</strong> Consolidators can discount to keep your book, but service variance is expensive. Price the <strong>true cost of disruption</strong>.</p></li><li><p><strong>Pressure-test ESG alignment.</strong> If your company loudly markets &#8220;people first,&#8221; your suppliers&#8217; behavior should rhyme.</p></li></ol><blockquote><p><strong>Jonas Br&#252;ckner:</strong> <em>&#8220;Walk the talk.&#8221;</em></p></blockquote><div><hr></div><h2>What employees should do (especially middle management)</h2><p>If you&#8217;re in overlapping scope (sales support, ops leadership, finance, HR, legal, marketing, IT), assume your role is under review - <strong>even if you&#8217;re top-quartile</strong>.</p><ul><li><p><strong>Document your book.</strong> Quantify customer impact, margin contributions, exception saves.</p></li><li><p><strong>Own a transition plan.</strong> Offer to stabilize high-risk lanes or hand over critical accounts&#8212;leaders remember who protects the base.</p></li><li><p><strong>Network now.</strong> As <strong>Robert Dickinson</strong> and <strong>Timo Schmitz</strong> illustrate, the market is <strong>actively</strong> hiring your skill set&#8212;both at independents and integrators.</p></li><li><p><strong>Expect waves.</strong> If you &#8220;survive&#8221; Round 1, don&#8217;t assume the process is over. Keep options open.</p></li></ul><div><hr></div><h2>Will the cuts go deeper than announced?</h2><p>History says <strong>maybe</strong>. <strong>Hasan Subasic</strong> believes the real number could be far higher; <strong>Dan Wustefeld</strong> suggests reductions started <strong>quarterly in 2023</strong> to pave the way. Even if the final tally lands near 6&#8211;8%, attrition and voluntary exits often <strong>compound</strong> the headline figure. That can be stabilizing (the org settles) or destabilizing (capability gaps) depending on how well knowledge transfer is managed. Watch the <strong>mid-tier</strong>&#8212;it is usually the first systemic casualty and the last capability to rebuild.</p><div><hr></div><h2>Is this consolidation good for the industry?</h2><p>Depends what you optimize for. Fewer, larger integrators can stabilize <strong>global</strong> capacity and invest in <strong>technology</strong>. But the cost is <strong>concentration risk</strong>, <strong>supplier leverage</strong>, and the very human costs many of you highlighted.</p><p><strong>Frederik Van der Borght</strong> puts a point on it: <em>&#8220;It is rather about getting rid of competition&#8230; Employees are&#8230; disposable. All for the money.&#8221;</em> Yet markets are dynamic. Consolidation at the top tends to <strong>fertilize</strong> the middle: independents absorb talent and customers, and some grow into the next generation of challengers. We&#8217;re already seeing that dynamic&#8212;<strong>today</strong>.</p><div><hr></div><h2>The line I can&#8217;t shake</h2><p><strong>Gal Dayan</strong> again: <em>&#8220;What DSV calls a &#8216;normal outcome of acquisition&#8217; is nothing more than mass disposals of human lives. It is calculated. It is intentional. And it is unacceptable.&#8221;</em></p><p>You don&#8217;t have to agree with the rhetoric to respect the signal. If your <strong>brand</strong> leans into &#8220;people and purpose,&#8221; your <strong>behavior</strong> during integrations is the most public, consequential test you will face. Customers notice. Employees remember. Regulators and politicians are listening.</p><div><hr></div><h2>Final thought: Number one is a milestone - not a moat</h2><p>Becoming #1 is easy to celebrate and hard to defend. Scale can lower cost per unit&#8212;but it can also raise your <strong>service variance</strong>, <strong>attention debt</strong>, and <strong>execution risk</strong> during integration. The winners of this cycle won&#8217;t just own more freight; they&#8217;ll own more <strong>trust</strong>&#8212;earned by transparent communication, resilient service, and humane transitions.</p><p><strong>Robert Dickinson</strong> is already onboard with former Schenker and DSV customers. <strong>Kuehne+Nagel, Maersk, DHL, and a long tail of independents</strong> are sharpening their value propositions for the next six months. If you&#8217;re a shipper, this is the moment to <strong>upgrade your portfolio</strong>. If you&#8217;re DSV, this is the moment to prove that <strong>&#8220;leader&#8221;</strong> means more than <strong>&#8220;largest.&#8221;</strong></p><div class="subscription-widget-wrap-editor" data-attrs="{&quot;url&quot;:&quot;https://www.thechain.media/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe&quot;,&quot;language&quot;:&quot;en&quot;}" data-component-name="SubscribeWidgetToDOM"><div class="subscription-widget show-subscribe"><div class="preamble"><p class="cta-caption">The Chain is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber.</p></div><form class="subscription-widget-subscribe"><input type="email" class="email-input" name="email" placeholder="Type your email&#8230;" tabindex="-1"><input type="submit" class="button primary" value="Subscribe"><div class="fake-input-wrapper"><div class="fake-input"></div><div class="fake-button"></div></div></form></div></div>]]></content:encoded></item><item><title><![CDATA[Tariff Management Mastery: Leveraging FTZs and Bonded Warehouses for Global Companies]]></title><description><![CDATA[Practical Approaches for International Firms to Mitigate U.S. Tariffs and Optimize Cash Flow]]></description><link>https://www.thechain.media/p/tariff-management-mastery-leveraging</link><guid isPermaLink="false">https://www.thechain.media/p/tariff-management-mastery-leveraging</guid><dc:creator><![CDATA[Global Supply Chain Council]]></dc:creator><pubDate>Tue, 30 Sep 2025 07:15:15 GMT</pubDate><enclosure url="https://substackcdn.com/image/fetch/$s_!8duY!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4075a68a-59e0-4af2-b507-28c8cf885902_1200x675.jpeg" length="0" type="image/jpeg"/><content:encoded><![CDATA[<div class="captioned-image-container"><figure><a class="image-link image2 is-viewable-img" target="_blank" href="https://substackcdn.com/image/fetch/$s_!8duY!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4075a68a-59e0-4af2-b507-28c8cf885902_1200x675.jpeg" data-component-name="Image2ToDOM"><div class="image2-inset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!8duY!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4075a68a-59e0-4af2-b507-28c8cf885902_1200x675.jpeg 424w, https://substackcdn.com/image/fetch/$s_!8duY!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4075a68a-59e0-4af2-b507-28c8cf885902_1200x675.jpeg 848w, https://substackcdn.com/image/fetch/$s_!8duY!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4075a68a-59e0-4af2-b507-28c8cf885902_1200x675.jpeg 1272w, https://substackcdn.com/image/fetch/$s_!8duY!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4075a68a-59e0-4af2-b507-28c8cf885902_1200x675.jpeg 1456w" sizes="100vw"><img src="https://substackcdn.com/image/fetch/$s_!8duY!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4075a68a-59e0-4af2-b507-28c8cf885902_1200x675.jpeg" width="1200" height="675" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/4075a68a-59e0-4af2-b507-28c8cf885902_1200x675.jpeg&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:675,&quot;width&quot;:1200,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:null,&quot;alt&quot;:&quot;Run Your Supply Chain Like a Cruise Ship | Food Logistics&quot;,&quot;title&quot;:null,&quot;type&quot;:null,&quot;href&quot;:null,&quot;belowTheFold&quot;:false,&quot;topImage&quot;:true,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" class="sizing-normal" alt="Run Your Supply Chain Like a Cruise Ship | Food Logistics" title="Run Your Supply Chain Like a Cruise Ship | Food Logistics" srcset="https://substackcdn.com/image/fetch/$s_!8duY!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4075a68a-59e0-4af2-b507-28c8cf885902_1200x675.jpeg 424w, https://substackcdn.com/image/fetch/$s_!8duY!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4075a68a-59e0-4af2-b507-28c8cf885902_1200x675.jpeg 848w, https://substackcdn.com/image/fetch/$s_!8duY!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4075a68a-59e0-4af2-b507-28c8cf885902_1200x675.jpeg 1272w, https://substackcdn.com/image/fetch/$s_!8duY!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4075a68a-59e0-4af2-b507-28c8cf885902_1200x675.jpeg 1456w" sizes="100vw" fetchpriority="high"></picture><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container restack-image"><svg role="img" width="20" height="20" viewBox="0 0 20 20" fill="none" stroke-width="1.5" stroke="var(--color-fg-primary)" stroke-linecap="round" stroke-linejoin="round" xmlns="http://www.w3.org/2000/svg"><g><title></title><path d="M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882"></path></g></svg></button><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container view-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-maximize2 lucide-maximize-2"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></button></div></div></div></a></figure></div><p>Navigating tariffs and unpredictable trade policies can be challenging for international businesses selling into the United States. Foreign Trade Zones (FTZs) and bonded warehouses offer strategic advantages to firms - regardless of their geographic origins - looking to manage tariff impacts, preserve liquidity, and maintain competitive market positions.</p><h2>Why FTZs and Bonded Warehouses Matter to Global Companies</h2><p>Companies from Asia, Europe, and other regions exporting goods to the U.S. face significant tariff pressures. Tools like FTZs and bonded warehouses help these firms store, assemble, or modify products duty-free, providing flexibility in cash flow and supply chain management.</p><div class="subscription-widget-wrap-editor" data-attrs="{&quot;url&quot;:&quot;https://www.thechain.media/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe&quot;,&quot;language&quot;:&quot;en&quot;}" data-component-name="SubscribeWidgetToDOM"><div class="subscription-widget show-subscribe"><div class="preamble"><p class="cta-caption">The Chain is a reader-supported publication. To receive new posts and support our work, consider becoming a free or paid subscriber.</p></div><form class="subscription-widget-subscribe"><input type="email" class="email-input" name="email" placeholder="Type your email&#8230;" tabindex="-1"><input type="submit" class="button primary" value="Subscribe"><div class="fake-input-wrapper"><div class="fake-input"></div><div class="fake-button"></div></div></form></div></div><ul><li><p><strong>Foreign Trade Zones (FTZs)</strong> defer customs duties until products exit the zone into U.S. commerce or are re-exported.</p></li><li><p><strong>Bonded warehouses</strong> allow goods to be stored duty-free for up to five years, enabling companies to adjust to favorable tariff conditions.</p></li></ul><h2>Real-Life Examples of FTZ Utilization by International Firms</h2><h3>&#128313; Automotive and Technology Industries</h3><p>Global automotive manufacturers such as Toyota, Hyundai, and BMW utilize FTZs to assemble imported components in the U.S.</p><ul><li><p><strong>Benefit</strong>: Reduced overall tariff costs through the "inverted tariff" advantage, where lower duty rates are applied to finished products rather than individual imported components.</p></li><li><p><strong>Result</strong>: Significant cost savings and streamlined production processes, maintaining competitiveness in the U.S. market.</p></li></ul><h3>&#128313; Pharmaceuticals &#8211; Pfizer and COVID-19 Vaccine</h3><p>European pharmaceutical giant Pfizer leveraged FTZs during the COVID-19 vaccine rollout.</p><ul><li><p><strong>Benefit</strong>: Imported vaccine components were exempted from immediate duties; storage was duty-free until FDA approval.</p></li><li><p><strong>Result</strong>: Lower initial costs, improved supply chain agility, and rapid response capability.</p></li></ul><h3>&#128313; Consumer Electronics &#8211; Sony and Samsung</h3><p>Asian electronics leaders Sony and Samsung utilize FTZs extensively for assembling consumer goods within the U.S.</p><ul><li><p><strong>Benefit</strong>: Delayed duty payments and improved cash flow management.</p></li><li><p><strong>Result</strong>: Enhanced operational flexibility and optimized timing for market entry and inventory control.</p></li></ul><h2>Bonded Warehouses: A Flexible Solution for Global Firms</h2><p>Bonded warehouses provide an additional layer of tariff management flexibility:</p><ul><li><p><strong>Tariff optimization</strong>: Duties are paid only upon goods' entry into U.S. commerce; companies can leverage tariff reductions occurring during storage periods.</p></li><li><p><strong>Cash flow management</strong>: Companies delay duty payments until the ideal market conditions or tariff reductions arise.</p></li></ul><h3>International Companies Leveraging Bonded Warehouses</h3><ul><li><p>A European furniture manufacturer stored inventory in bonded warehouses during a period of high U.S. tariffs, significantly reducing overall tariff payments when duties eventually decreased.</p></li><li><p>Asian fashion brands utilized bonded storage to adjust their inventory timing, reducing exposure to tariff volatility and aligning duty payments with market demand.</p></li></ul><h2>Choosing Between FTZs and Bonded Warehouses: A Strategic Decision</h2><div class="captioned-image-container"><figure><a class="image-link image2 is-viewable-img" target="_blank" href="https://substackcdn.com/image/fetch/$s_!DS9y!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4f4e9828-5dd3-4427-9ab6-e7948e71f501_1218x390.png" data-component-name="Image2ToDOM"><div class="image2-inset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!DS9y!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4f4e9828-5dd3-4427-9ab6-e7948e71f501_1218x390.png 424w, https://substackcdn.com/image/fetch/$s_!DS9y!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4f4e9828-5dd3-4427-9ab6-e7948e71f501_1218x390.png 848w, https://substackcdn.com/image/fetch/$s_!DS9y!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4f4e9828-5dd3-4427-9ab6-e7948e71f501_1218x390.png 1272w, https://substackcdn.com/image/fetch/$s_!DS9y!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4f4e9828-5dd3-4427-9ab6-e7948e71f501_1218x390.png 1456w" sizes="100vw"><img src="https://substackcdn.com/image/fetch/$s_!DS9y!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4f4e9828-5dd3-4427-9ab6-e7948e71f501_1218x390.png" width="1218" height="390" 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srcset="https://substackcdn.com/image/fetch/$s_!DS9y!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4f4e9828-5dd3-4427-9ab6-e7948e71f501_1218x390.png 424w, https://substackcdn.com/image/fetch/$s_!DS9y!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4f4e9828-5dd3-4427-9ab6-e7948e71f501_1218x390.png 848w, https://substackcdn.com/image/fetch/$s_!DS9y!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4f4e9828-5dd3-4427-9ab6-e7948e71f501_1218x390.png 1272w, https://substackcdn.com/image/fetch/$s_!DS9y!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4f4e9828-5dd3-4427-9ab6-e7948e71f501_1218x390.png 1456w" sizes="100vw" loading="lazy"></picture><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container restack-image"><svg role="img" width="20" height="20" viewBox="0 0 20 20" fill="none" stroke-width="1.5" stroke="var(--color-fg-primary)" stroke-linecap="round" stroke-linejoin="round" xmlns="http://www.w3.org/2000/svg"><g><title></title><path d="M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882"></path></g></svg></button><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container view-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-maximize2 lucide-maximize-2"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></button></div></div></div></a></figure></div><p>FTZs are ideal for firms manufacturing or assembling goods within the U.S., whereas bonded warehouses suit companies primarily looking to manage imported inventory efficiently without manufacturing processes.</p><h2>Implementing FTZ and Bonded Warehouse Strategies</h2><ol><li><p><strong>Evaluate Products</strong> &#8211; Identify which goods are most affected by U.S. tariffs.</p></li><li><p><strong>Select the Right Facility</strong> &#8211; Match your needs: assembly and manufacturing activities fit best in FTZs, while pure storage solutions align with bonded warehouses.</p></li><li><p><strong>Internal Coordination</strong> &#8211; Obtain necessary internal and external approvals swiftly to maximize the advantage of tariff management strategies.</p></li><li><p><strong>Technology and Compliance Systems</strong> &#8211; Implement robust systems to track goods, manage customs requirements, and maintain compliance seamlessly.</p></li></ol><h2>Long-Term Advantages for International Businesses</h2><ul><li><p>FTZs and bonded warehouses offer substantial operational and financial advantages for non-U.S. companies entering or expanding in the U.S. market.</p></li><li><p>These tools help global firms mitigate tariff risks, manage liquidity, and strategically time market entry.</p></li></ul><div><hr></div><p>Explore how global companies are successfully navigating tariff challenges and connect with other international supply chain professionals at <a href="https://www.chain.net/">Chain.NET</a>. Join insightful discussions, attend specialized events, and access exclusive resources tailored to international trade and procurement.</p><div class="subscription-widget-wrap-editor" data-attrs="{&quot;url&quot;:&quot;https://www.thechain.media/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe&quot;,&quot;language&quot;:&quot;en&quot;}" data-component-name="SubscribeWidgetToDOM"><div class="subscription-widget show-subscribe"><div class="preamble"><p class="cta-caption">The Chain is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber.</p></div><form class="subscription-widget-subscribe"><input type="email" class="email-input" name="email" placeholder="Type your email&#8230;" tabindex="-1"><input type="submit" class="button primary" value="Subscribe"><div class="fake-input-wrapper"><div class="fake-input"></div><div class="fake-button"></div></div></form></div></div>]]></content:encoded></item><item><title><![CDATA[The Green Bull: How Lamborghini is Redefining Sustainable Luxury]]></title><description><![CDATA[For many, Lamborghini is synonymous with unbridled performance, iconic design, and pure emotion.]]></description><link>https://www.thechain.media/p/the-green-bull-how-lamborghini-is</link><guid isPermaLink="false">https://www.thechain.media/p/the-green-bull-how-lamborghini-is</guid><dc:creator><![CDATA[Global Supply Chain Council]]></dc:creator><pubDate>Fri, 26 Sep 2025 11:38:06 GMT</pubDate><enclosure url="https://substackcdn.com/image/fetch/$s_!J0Fa!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F802c1037-9409-4f38-9157-741b712b7aa0_878x502.png" length="0" type="image/jpeg"/><content:encoded><![CDATA[<div class="captioned-image-container"><figure><a class="image-link image2 is-viewable-img" target="_blank" href="https://substackcdn.com/image/fetch/$s_!J0Fa!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F802c1037-9409-4f38-9157-741b712b7aa0_878x502.png" data-component-name="Image2ToDOM"><div class="image2-inset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!J0Fa!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F802c1037-9409-4f38-9157-741b712b7aa0_878x502.png 424w, https://substackcdn.com/image/fetch/$s_!J0Fa!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F802c1037-9409-4f38-9157-741b712b7aa0_878x502.png 848w, https://substackcdn.com/image/fetch/$s_!J0Fa!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F802c1037-9409-4f38-9157-741b712b7aa0_878x502.png 1272w, https://substackcdn.com/image/fetch/$s_!J0Fa!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F802c1037-9409-4f38-9157-741b712b7aa0_878x502.png 1456w" sizes="100vw"><img src="https://substackcdn.com/image/fetch/$s_!J0Fa!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F802c1037-9409-4f38-9157-741b712b7aa0_878x502.png" width="878" height="502" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/802c1037-9409-4f38-9157-741b712b7aa0_878x502.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:502,&quot;width&quot;:878,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:396529,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:false,&quot;topImage&quot;:true,&quot;internalRedirect&quot;:&quot;https://www.thechain.media/i/167983109?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F802c1037-9409-4f38-9157-741b712b7aa0_878x502.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" class="sizing-normal" alt="" srcset="https://substackcdn.com/image/fetch/$s_!J0Fa!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F802c1037-9409-4f38-9157-741b712b7aa0_878x502.png 424w, https://substackcdn.com/image/fetch/$s_!J0Fa!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F802c1037-9409-4f38-9157-741b712b7aa0_878x502.png 848w, https://substackcdn.com/image/fetch/$s_!J0Fa!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F802c1037-9409-4f38-9157-741b712b7aa0_878x502.png 1272w, https://substackcdn.com/image/fetch/$s_!J0Fa!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F802c1037-9409-4f38-9157-741b712b7aa0_878x502.png 1456w" sizes="100vw" fetchpriority="high"></picture><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container restack-image"><svg role="img" width="20" height="20" viewBox="0 0 20 20" fill="none" stroke-width="1.5" stroke="var(--color-fg-primary)" stroke-linecap="round" stroke-linejoin="round" xmlns="http://www.w3.org/2000/svg"><g><title></title><path d="M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882"></path></g></svg></button><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container view-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-maximize2 lucide-maximize-2"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></button></div></div></div></a></figure></div><p>For many, Lamborghini is synonymous with unbridled performance, iconic design, and pure emotion. It's often described as "more than a company, it's a magical place", a dream that blends Italian style, technology, and craftsmanship. But beyond the roar of a V12 engine and breathtaking aesthetics, Automobili Lamborghini is also accelerating towards a surprisingly robust future in <strong>sustainability</strong>, proving that luxury and environmental responsibility can not only coexist but mutually reinforce each other.</p><h3>A Decade of Carbon Neutrality at the Core</h3><p>Lamborghini's commitment to sustainability is deeply rooted, with its Sant'Agata Bolognese production site certified <strong>carbon neutral on balance since 2015</strong>. This significant achievement will mark its tenth anniversary in 2025. This neutrality isn't just about offsetting; it's about a systematic strategy to monitor and drastically reduce emissions first.</p><div class="subscription-widget-wrap-editor" data-attrs="{&quot;url&quot;:&quot;https://www.thechain.media/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe&quot;,&quot;language&quot;:&quot;en&quot;}" data-component-name="SubscribeWidgetToDOM"><div class="subscription-widget show-subscribe"><div class="preamble"><p class="cta-caption">The Chain is a reader-supported publication. To receive new posts and support our work, consider becoming a free or paid subscriber.</p></div><form class="subscription-widget-subscribe"><input type="email" class="email-input" name="email" placeholder="Type your email&#8230;" tabindex="-1"><input type="submit" class="button primary" value="Subscribe"><div class="fake-input-wrapper"><div class="fake-input"></div><div class="fake-button"></div></div></form></div></div><p>Despite the plant doubling in size and its workforce tripling, Lamborghini has continuously invested in cutting-edge technologies to maintain this status. Key initiatives include:</p><ul><li><p><strong>Renewable Energy</strong>: The installation of an extensive <strong>photovoltaic system</strong> in 2010, which was later enlarged, now generates over 2 million kWh annually, reducing CO2 by approximately 800 tons each year. Further expansion is planned by the end of 2025, promising an additional 2.89 million kWh per year and a reduction of 1,200 tonnes of CO2 annually.</p></li><li><p><strong>Efficient Energy Use</strong>: Two trigeneration plants, operational since 2015 and 2017, simultaneously produce electricity, thermal energy, and cooling from natural gas, saving an estimated 1,000 tons of CO2 annually. In 2015, Lamborghini was also the first automotive company in Italy to adopt a <strong>biogas-fueled district heating system</strong>, providing 3,000 MWh of thermal energy yearly and reducing another 500 tons of CO2.</p></li><li><p><strong>Water Conservation</strong>: The company uses <strong>95% water-based paint</strong> in its paint shop to reduce VOC emissions and improve air quality. A new project aims to reuse all water from condensation towers, significantly reducing consumption of fresh water.</p></li><li><p><strong>Circular Economy</strong>: Lamborghini actively reuses scraps from its leather and carbon fiber plants, giving these materials a "new life". This embrace of circular economy principles demonstrates a commitment to recycling and waste reduction, with 56% of special waste recovered in 2020.</p><p></p></li></ul><div class="captioned-image-container"><figure><a class="image-link image2 is-viewable-img" target="_blank" href="https://substackcdn.com/image/fetch/$s_!cQnu!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F65dae2b8-9203-49aa-a319-5a07cadebbdc_872x500.png" data-component-name="Image2ToDOM"><div class="image2-inset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!cQnu!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F65dae2b8-9203-49aa-a319-5a07cadebbdc_872x500.png 424w, https://substackcdn.com/image/fetch/$s_!cQnu!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F65dae2b8-9203-49aa-a319-5a07cadebbdc_872x500.png 848w, https://substackcdn.com/image/fetch/$s_!cQnu!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F65dae2b8-9203-49aa-a319-5a07cadebbdc_872x500.png 1272w, https://substackcdn.com/image/fetch/$s_!cQnu!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F65dae2b8-9203-49aa-a319-5a07cadebbdc_872x500.png 1456w" sizes="100vw"><img src="https://substackcdn.com/image/fetch/$s_!cQnu!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F65dae2b8-9203-49aa-a319-5a07cadebbdc_872x500.png" width="872" height="500" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/65dae2b8-9203-49aa-a319-5a07cadebbdc_872x500.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:500,&quot;width&quot;:872,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:654334,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:false,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:&quot;https://www.thechain.media/i/167983109?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F65dae2b8-9203-49aa-a319-5a07cadebbdc_872x500.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" class="sizing-normal" alt="" srcset="https://substackcdn.com/image/fetch/$s_!cQnu!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F65dae2b8-9203-49aa-a319-5a07cadebbdc_872x500.png 424w, https://substackcdn.com/image/fetch/$s_!cQnu!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F65dae2b8-9203-49aa-a319-5a07cadebbdc_872x500.png 848w, https://substackcdn.com/image/fetch/$s_!cQnu!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F65dae2b8-9203-49aa-a319-5a07cadebbdc_872x500.png 1272w, https://substackcdn.com/image/fetch/$s_!cQnu!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F65dae2b8-9203-49aa-a319-5a07cadebbdc_872x500.png 1456w" sizes="100vw"></picture><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container restack-image"><svg role="img" width="20" height="20" viewBox="0 0 20 20" fill="none" stroke-width="1.5" stroke="var(--color-fg-primary)" stroke-linecap="round" stroke-linejoin="round" xmlns="http://www.w3.org/2000/svg"><g><title></title><path d="M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882"></path></g></svg></button><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container view-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-maximize2 lucide-maximize-2"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></button></div></div></div></a></figure></div><p>As Ranieri Niccoli, Chief Manufacturing Officer, states, "The Sant'Agata Bolognese facility today is a concrete example of how we can combine first-rate manufacturing and environmental responsibility".</p><h3>The Electrification Roadmap: "Direzione Cor Tauri"</h3><p>Sustainability is one of Lamborghini's six key strategic pillars, alongside brand, product, customer, value creation, and sense-making. Their "Direzione Cor Tauri" roadmap, launched in 2021, guides the electrification of their product line. This ambitious plan focuses on emissions reduction while <em>enhancing</em> performance.</p><p>The company has already introduced its <strong>first fully hybrid super sports car range</strong>, including the Revuelto, Urus SE, and Temerario. These hybrid models showcase significant CO2 reductions while boosting performance through advanced hybrid technologies and instant torque delivery. For example, the Revuelto achieves a <strong>30% cut in CO2 compared to the Aventador</strong>, and the Urus SE delivers an <strong>80% reduction compared to the Urus Performante</strong>.</p><p>Looking ahead, Lamborghini plans to launch its <strong>first full-electric model by 2028</strong>, followed by a <strong>fully electric SUV in 2029</strong>. The Lamborghini Lanzador will be a key milestone in this product strategy and company footprint reduction. This proactive approach contrasts with some other luxury car manufacturers who have been slower to introduce electric vehicles, such as Ferrari, Subaru, and Lincoln, who as of 2024, still do not have a full EV on the market. Luxury manufacturers, with their low-volume production and emphasis on cutting-edge technology, have a unique opportunity to act as a "test-bed for the development and experimentation of green technologies".</p><h3>People and Community at the Heart of Sustainability</h3><p>Lamborghini's sustainability efforts extend beyond environmental impact to a strong focus on <strong>corporate social responsibility</strong> (CSR). This includes a significant emphasis on their employees' well-being, development, and a commitment to local communities.</p><ul><li><p><strong>Employee Well-being and Inclusion</strong>: Lamborghini places its people at the center of its corporate vision, fostering an environment where individuals can learn, grow, and unlock their full potential. They have reaffirmed their UNI/PdR 125:2022 certification for Gender Equality, showing a significant increase in women employees, including in managerial positions. Initiatives like the "Feelosophy" program integrate well-being and welfare with a focus on health and safety, promoting a harmonious balance between body, mind, and purpose. The company offers training on topics from unconscious bias to inclusive language, aiming for meaningful cultural change.</p></li><li><p><strong>Community Engagement</strong>: Lamborghini actively engages with schools, cultural initiatives, and local organizations. For example, they support projects in their home region of Sant'Agata Bolognese, like "Sfrecciamo nel Futuro," aimed at conscious career orientation and breaking gender stereotypes among younger generations. The company also contributes to initiatives like the "Lamborghini Park," a 7-hectare field near their factory where 10,000 oaks were planted in 2011 to study biodiversity and climate change, alongside 17 beehives to monitor bee health and honey composition.</p></li></ul><h3>Robust Governance and Transparent Reporting</h3><p>A sustainable strategy requires solid governance. Lamborghini established a dedicated cross-functional sustainability project team in 2021, with representatives from all key departments, to define, plan, implement, and monitor sustainability initiatives. This team has laid the groundwork for a more sustainable business model addressing future challenges.</p><p>Lamborghini's commitment to transparency is evident in the publication of its <strong>first Sustainability Report in 2025</strong>. This voluntary report, aligned with international GRI and European ESRS standards, provides a clear and measurable outline of the company's broad commitment to a lower-emission future. It includes over 70 indicators, covering quantitative and qualitative data across environmental, social, and governance (ESG) pillars, and presents performance data from 2024 compared to 2023 for clear progress tracking.</p><p>Furthermore, the company implements an <strong>S-Rating system</strong> to assess suppliers and partners across the supply chain, ensuring alignment with their ESG criteria. This indicates a comprehensive approach to sustainability that spans their entire value chain, from sourcing raw materials to logistics and product use.<br></p><div class="captioned-image-container"><figure><a class="image-link image2 is-viewable-img" target="_blank" href="https://substackcdn.com/image/fetch/$s_!Asix!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fda7abbe4-5ffe-48f5-8590-df3ff01614da_1028x768.jpeg" data-component-name="Image2ToDOM"><div class="image2-inset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!Asix!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fda7abbe4-5ffe-48f5-8590-df3ff01614da_1028x768.jpeg 424w, https://substackcdn.com/image/fetch/$s_!Asix!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fda7abbe4-5ffe-48f5-8590-df3ff01614da_1028x768.jpeg 848w, https://substackcdn.com/image/fetch/$s_!Asix!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fda7abbe4-5ffe-48f5-8590-df3ff01614da_1028x768.jpeg 1272w, https://substackcdn.com/image/fetch/$s_!Asix!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fda7abbe4-5ffe-48f5-8590-df3ff01614da_1028x768.jpeg 1456w" sizes="100vw"><img src="https://substackcdn.com/image/fetch/$s_!Asix!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fda7abbe4-5ffe-48f5-8590-df3ff01614da_1028x768.jpeg" width="1028" height="768" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/da7abbe4-5ffe-48f5-8590-df3ff01614da_1028x768.jpeg&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:768,&quot;width&quot;:1028,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:null,&quot;alt&quot;:&quot;Stephan Winkelmann | Lamborghini &#8211; European CEO&quot;,&quot;title&quot;:null,&quot;type&quot;:null,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" class="sizing-normal" alt="Stephan Winkelmann | Lamborghini &#8211; European CEO" title="Stephan Winkelmann | Lamborghini &#8211; European CEO" srcset="https://substackcdn.com/image/fetch/$s_!Asix!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fda7abbe4-5ffe-48f5-8590-df3ff01614da_1028x768.jpeg 424w, https://substackcdn.com/image/fetch/$s_!Asix!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fda7abbe4-5ffe-48f5-8590-df3ff01614da_1028x768.jpeg 848w, https://substackcdn.com/image/fetch/$s_!Asix!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fda7abbe4-5ffe-48f5-8590-df3ff01614da_1028x768.jpeg 1272w, https://substackcdn.com/image/fetch/$s_!Asix!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fda7abbe4-5ffe-48f5-8590-df3ff01614da_1028x768.jpeg 1456w" sizes="100vw" loading="lazy"></picture><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container restack-image"><svg role="img" width="20" height="20" viewBox="0 0 20 20" fill="none" stroke-width="1.5" stroke="var(--color-fg-primary)" stroke-linecap="round" stroke-linejoin="round" xmlns="http://www.w3.org/2000/svg"><g><title></title><path d="M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882"></path></g></svg></button><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container view-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-maximize2 lucide-maximize-2"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></button></div></div></div></a></figure></div><p>Stephan Winkelmann, Chairman and CEO of Automobili Lamborghini, affirms: "With this report, we aim to make visible what is already part of our daily way of working: the idea that innovation, performance and sustainability can coexist and mutually reinforce each other. This commitment stems from how we operate and extends to every area of our business".</p><h3>Key Takeaways for a Sustainable Future:</h3><ul><li><p><strong>Integrated Strategy</strong>: Lamborghini demonstrates that sustainability is not a side project but a core, structural element integrated into every aspect of its operations, from factory efficiency to product development and social responsibility.</p></li><li><p><strong>Innovation for Impact</strong>: The company leverages technological innovation, such as hybrid powertrains and advanced material recycling, to achieve significant environmental benefits without compromising performance or luxury.</p></li><li><p><strong>Transparency and Accountability</strong>: The publication of their first Sustainability Report and adherence to international reporting standards highlight a strong commitment to transparently communicating their progress and holding themselves accountable to stakeholders and future generations.</p></li></ul><p>What do you think about luxury brands leading the charge in green innovation? Share your thoughts on how industries can blend performance, emotion, and sustainability in the comments below!</p><div class="subscription-widget-wrap-editor" data-attrs="{&quot;url&quot;:&quot;https://www.thechain.media/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe&quot;,&quot;language&quot;:&quot;en&quot;}" data-component-name="SubscribeWidgetToDOM"><div class="subscription-widget show-subscribe"><div class="preamble"><p class="cta-caption">The Chain is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber.</p></div><form class="subscription-widget-subscribe"><input type="email" class="email-input" name="email" placeholder="Type your email&#8230;" tabindex="-1"><input type="submit" class="button primary" value="Subscribe"><div class="fake-input-wrapper"><div class="fake-input"></div><div class="fake-button"></div></div></form></div></div>]]></content:encoded></item></channel></rss>