Insight: How to Navigate the 'New Normal' of Rising Costs and Global Supply Chain Disruptions
Global supply chains are under pressure with logistics companies and third-party logistics providers (3PLs) contending with rising operating costs, shifting trade lanes, and a steady drumbeat of disruptions - from geopolitical instability to extreme weather events.
Instead of trying to wait out the storm, many are actively reshaping their networks and operating models to build resilience. Here are four ways the industry is responding.
Investing in Technology for Cost Control and Visibility
Escalating fuel costs, labor shortages, and port congestion have made efficiency a top priority. Logistics companies are leaning heavily on technology to squeeze costs out of operations and deliver real-time visibility to customers.
DHL Supply Chain has scaled its use of robotics and automation across fulfillment centers. Autonomous mobile robots and AI-powered inventory management systems reduce labor dependency while improving throughput. This doesn’t just lower costs, it also makes operations more predictable in the face of labor shortages or wage hikes.
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Similarly, Flexport has doubled down on digital freight forwarding platforms that allow customers to track cargo end-to-end. By automating rate comparison, documentation, and customs processes, Flexport reduces manual overhead while giving shippers better control over fluctuating transport costs.
Technology isn’t a cure-all, but companies that invest in automation and digital platforms are finding they can dampen cost volatility and offer more reliable service even when networks are strained.
Rethinking Network Design with Nearshoring and Regional Hubs
Traditional global supply chains - optimized for lowest-cost sourcing - are being reevaluated. Rising shipping rates, long lead times, and geopolitical risks have made purely global strategies too brittle. Many 3PLs are helping customers shift toward regionalized supply chains that shorten transport legs and reduce exposure to chokepoints.
Take Ryder System, a major US-based 3PL. The company has expanded its footprint in Mexico to support customers moving manufacturing and assembly closer to North American markets. By leveraging nearshoring, Ryder’s clients can cut transit times dramatically compared to relying on Asia–US ocean freight, while reducing sensitivity to Pacific port congestion.
European players are taking a similar tack. Kuehne + Nagel has increased its warehousing and cross-border trucking capabilities within Europe to support intra-regional trade. This allows clients to pivot faster if long-haul ocean freight is disrupted.
By redesigning networks around regional hubs, logistics companies are not only managing costs but also improving agility. The goal is less about chasing the cheapest supplier and more about creating a balance between cost, speed, and resilience.
Building Flexibility Through Multimodal Solutions
With shipping rates and capacity swinging wildly, logistics providers are leaning into multimodal transportation - blending ocean, air, rail, and trucking options to build flexibility into supply chains.
During the pandemic, when air freight capacity collapsed, 3PLs had to improvise. That lesson stuck. Today, companies like DB Schenker offer integrated solutions where shipments can shift between rail and air depending on cost and urgency.
For example, when the Red Sea crisis disrupted vessel schedules in 2024, DB Schenker rerouted some Asia–Europe cargo via rail through Central Asia and supplemented with air freight for urgent shipments.
This multimodal approach allows providers to cushion the blow of rate spikes or delays in any one mode. Shippers may pay slightly more for this flexibility, but they gain continuity of service and the ability to adjust dynamically as conditions change.
Strategic Partnerships and Vertical Integration
Another lever logistics companies are pulling is tightening control over more of the supply chain. Some are acquiring assets; others are forming deeper partnerships with carriers, technology firms, or even customers.
Maersk, long known as an ocean carrier, has aggressively expanded into 3PL services. Through acquisitions of warehousing, customs, and air freight companies, Maersk now positions itself as a one-stop integrated logistics provider.
This vertical integration reduces dependency on external partners, helping Maersk offer more predictable pricing and service levels in a volatile market.
Meanwhile, XPO Logistics has partnered closely with e-commerce retailers to build customized last-mile delivery solutions. By embedding more deeply into clients’ operations, XPO can lock in long-term contracts that provide stability against fluctuating transport costs.
These strategies aren’t just defensive, they are about securing greater control and creating competitive differentiation in a crowded market.
From Cost Management to Resilience
The logistics industry has shifted from focusing primarily on cost optimization to balancing cost with resilience and service reliability. How much the COVID-19 pandemic has been responsible for this mental shift, is the subject of another detailed discussion.
Nevertheless, today, with rising costs, geopolitical shifts, and ongoing disruptions, the “old normal” of lean, hyper-globalized supply chains isn’t coming back any time soon.
3PLs and logistics providers that succeed will be those that:
Leverage technology to improve efficiency and transparency.
Redesign networks around regional hubs and nearshoring strategies.
Offer multimodal solutions that provide flexibility when one mode fails.
Expand control through partnerships or vertical integration.
The common thread is adaptability. Customers want partners who can manage uncertainty and deliver consistency despite volatility. For logistics companies and 3PLs, that means rethinking not just how they move goods, but how they design and manage entire supply chain ecosystems.
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