Regulations, Workforce and Disruptions – How European supply chains must adapt to the new normal
By Hariesh Manaadiar, Founder, Shipping and Freight Resource | March 17, 2025
The European Union accounts for around 16% of global trade and includes diverse stakeholders comprising policy makers, transport authorities, ports, logistics service providers and technology innovators driving the future of the European supply chains. These key European stakeholders, most of whom will be present at CHAINge Europe in Brussels on the 17th and 18th of June 2025 are not only adapting to the changes in the region, but also actively shaping the next generation of supply chain and logistics through digitalisation, sustainability and multimodal connectivity.
CHAINge EU is an initiative by the Association of Supply Chain Management (ASCM) aimed at equipping supply chain executives and professionals with the tools and insights required to navigate these changes, transformation and to tackle the big questions shaping the future of supply chains.
A recent webinar featuring industry experts highlighted some of the critical issues that are defining the supply chain landscape in the EU in 2025 and set the stage for discussions at CHAINge EU.
EU Regulations and Compliance Issues
Regulatory and compliance issues are one of the areas of concern for companies operating in Europe as they are required to meet several stringent requirements set by various regulations related to emissions tracking, sustainable sourcing, and ethical labor practices. These regulations include the Supply Chain Due Diligence Directive, the Carbon Border Adjustment Mechanism (CBAM), and the Deforestation Act.
SME businesses in the EU are particularly susceptible to these issues as they struggle to comply due to the sheer complexity of these frameworks.
The webinar emphasized the importance of digital solutions and technologies that may be required to manage sustainability reporting and improve transparency in sourcing. Companies that fail to keep up risk serious financial and reputational damage, especially as enforcement measures tighten across the EU. These issues will be a major focus at CHAINge EU, where experts will explore digital tools to enhance compliance and reporting.
Global Trade Disruptions and Their Impact on European Supply Chains
The conversation underscored the ongoing disruptions affecting global supply chains. At CHAINge Europe 2025, industry leaders will continue this discussion, exploring strategies to mitigate trade risks through nearshoring, multimodal transport, and digital transformation.
Europe, being a key player in international trade, has been at the receiving end of multiple crises, from geopolitical trade barriers to transportation bottlenecks. The Red Sea crisis and the rerouting of major shipping lanes have caused extended transit times, leading to congestion in European ports.
The trade tensions and the resulting tariff battles have further complicated procurement strategies, forcing European companies to rethink supply chain resilience.
While nearshoring has been touted as a potential solution to mitigate trade risks, it is far from an ideal fix as moving production closer to home requires massive investments in infrastructure particularly in Germany and a few other key EU countries as rail and road networks are already under strain. Nearshoring also places additional pressure on regional inland transport systems including expanded capacity in short-sea shipping, inland waterways and rail freight.
Multimodal transport is a critical element of the EU’s logistics evolution. In this context, although the EU’s Green Deal is pushing for a 50% increase in rail freight by 2050 it could be a long time before it is implemented as investment in rail corridors is not seen as a short-term priority.
At the same time, according to a February 2025 article by Drees & Sommer SE, there are currently more than 8,000 bridges on Germany's motorway system deemed in need of refurbishment, with about 3,000 additional bridges requiring overhauls on other main trunk roads. This extensive need for repairs has indeed led to significant delays and operational challenges for freight movement across the continent.
The popular China-EU rail corridor remains an attractive alternative for high-value and time-sensitive shipments, but the ongoing geopolitical tensions and infrastructure constraints limits its scalability.
Road freight also faces major headwinds, with the EU implementing strict low-emission zone policies and increasing toll regulations, forcing logistics providers to accelerate the adoption of electric and hydrogen-powered trucks.
There are also several initiatives in the pipeline to make better use of the EU's vast inland waterways and move more freight onto inland waterways because despite a 41,000 km waterway network, only 6% of freight currently moves via this option.
This is in line with the EU's Green Deal which is targeting a 25% increase in inland and short-sea shipping by 2030 increasing to 50% by 2050.
Workforce Challenges: Skills, Training, and the Future of EU Logistics
While infrastructure issues and other disruptions affect trade in the EU, workforce shortages and skills gap in logistics is another issue that came up in the webinar.
As the logistics sector, particularly in the EU becomes more digitized, the industry is grappling with an aging workforce and a lack of skilled labor to handle the new technologies.
The webinar discussed the fact that although a lot of the current workforce has been “born into technology”, there is an urgent need to train and upskill the next generation of supply chain professionals in how the entire value chain works and how things should be handled in the absence and in conjunction with technology.
Universities like the University of Antwerp, organisations like ASCM and academies like Shipping and Freight Academy are actively working to bridge this skills gap through specialised and bespoke training programs and partnerships to prepare workers for the evolving demands in the industry. CHAINge EU is Europe’s premier supply chain conference and will feature discussions on workforce upskilling, featuring universities and organizations leading this transformation.
Digital transformation and evolution
Digital transformation of supply chains is another game-changer in terms of improvements in operational efficiencies, inventory optimization and many other areas such as transparency and fraud prevention in international trade.
The experts on the panel made it clear that visibility and traceability of the full end to end value chain was no longer optional but an immediate requirement to manage today’s and future supply chains effectively.
The recent rise in ship fires, fraud in supply chains, insurance disputes etc. have pushed regulators and industry leaders to demand greater transparency in cargo tracking.
This is particularly critical for industries like automotive, pharmaceuticals and clothing which are dependent on assembly line operations and where supply chain disruptions can lead to factory shutdowns and financial losses.
The way forward
In summary, the future of the EU's supply chains will be defined by regulations, compliance, digitalization and a transition to more multimodalism. Companies that work smartly and introduce a good mix of digitalization and a trained workforce will have a competitive edge while those who fail to adapt will end up facing regulatory and operational pressures.
The balance between technology and human expertise is critical and supply chain leaders must ensure that their organizations invest in both digital tools and training their workforce to build an agile and resilient supply chain.
It is also clear that supply chains will have to get used to the new normal, a normal that will be shaped by continuous disruption, stringent regulations and the need for constant adaptation.
EU’s policymakers and authorities must work in tandem with supply chain leaders, logistics service providers and digital innovators to navigate these shifts and create a more resilient, efficient and sustainable trade ecosystem for the European Union.
The future EU supply chains will be multimodal and digital, driven by collaboration and EU businesses that recognize and adapt to this shift and invest in an agile and visible supply chain will lead the way. And to stay ahead in this evolving landscape, supply chain leaders must attend CHAINge EU, Europe’s premier supply chain conference to be a part of the conversations actually shaping the future of European supply chains.
