EU regulation and green barriers

Manufacturing

China-Europe Freighter Capacity Down 28% After EU €3 Duty

China-to-Europe freighter capacity has fallen 28% since June, driven by the EU’s €3 customs duty on low-value parcels introduced on 1 July. E-commerce imports into Europe dropped 24% in July, prompting an immediate 10% capacity cut. Regional declines were severe: Madrid (78%), Budapest (58%), and Ürümqi (72%). Utilisation for converted Boeing 747-400Fs fell 13.8%. Despite volume pressure, rates on key China–Europe lanes have firmed. Rotate projects possible recovery within 12 months, referencing U.S. and Brazilian de minimis phaseouts.

Geopolitics

Indonesia-EU Pact Cuts Tariffs on 98% of Goods

Indonesia’s upcoming trade pact with the European Union will eliminate tariffs on 98% of tariff lines and cover 99.5% of bilateral trade value, granting access to a $22 trillion market of 450 million people. Negotiations began in 2016, concluded politically in 2025, and are slated for signature in Q4 2026. Key Indonesian exports like palm oil, textiles, footwear, and rubber will enter the EU duty-free; in return, Indonesia will phase out duties on European wood pulp, aircraft, railway equipment, and fertilizers. The agreement also advances digital customs, sustainability compliance, and supply chain predictability.

ESG & Regulation

Europe’s Battery Supply Chain Faces ESG Test, Due Diligence Delayed to Aug 2027

Europe’s battery supply chain faces mounting ESG scrutiny, with Arthur D. Little identifying upstream mining and processing as highest-risk zones for emissions, water stress, and human rights violations. The EU Battery Regulation’s due diligence obligations are delayed until August 2027, exposing a gap between policy and implementation. Mining firms like Elementos and Latitude 66 are embedding ESG and traceability early — from Finland’s Kuusamo Schist Belt to Spain’s Oropesa Tin Project — to meet binding requirements on carbon footprint, recycled content, and melt-and-pour verification starting 1 October 2026. Responsible sourcing is now a core commercial requirement, not just compliance.

Procurement

Agentic AI Procurement Spend to Hit $53B by 2030

Agentic AI in procurement has shifted from buzzword to boardroom priority in 2026. Gartner forecasts spend will grow from under US$2bn in 2025 to US$53bn by 2030. Deloitte finds 92% of CPOs are assessing or piloting the technology. Bain & Company cites a global bank’s agentic AI solution projected to yield US$180m in savings at scale. A panel on implementation challenges will convene at Procurement LIVE: The London Summit on 8–9 September 2026.

AI & Automation

Maersk inks UK logistics deal for Columbia Sportswear, handles 1.6M units/year

A.P. Moller – Maersk has signed a new agreement with Columbia Sportswear to manage its UK and Ireland Pick & Pack operations from a dedicated 8,000-square-metre facility in Tamworth, UK. The five-year contract replaces Columbia’s prior France-based distribution setup in Cambrai. The hub will handle 1.6 million inbound units annually, process 1.5 million B2B and 340,000 B2C outbound units, and maintain over one million units on hand across 25,000 SKUs. Maersk will also deliver customs handling, cross-docking, and final-mile delivery.

Europe Supply Chain

U.S. Pushes EU to Ease CSDDD, CBAM Rules Amid Trade Tensions

The U.S. is urging the EU to ease enforcement of the Corporate Sustainability Due Diligence Directive (CSDDD) and Carbon Border Adjustment Mechanism (CBAM), citing risks to transatlantic trade. Ambassador Andrew Puzder stressed commitments made in Turnberry, Scotland, while EU officials reaffirm regulatory autonomy. CSDDD implementation begins in 2027, CBAM’s transitional phase started in October 2023, and full CBAM application launches in 2026. Over 4,000 non-EU firms fall under CSDDD’s scope, with penalties up to 5% of global turnover. Affected U.S. exports face estimated $220M in annual CBAM compliance costs.

ESG & Regulation

DHL, Vinted expand German circular fashion logistics

DHL and Vinted are expanding their partnership in Germany to support the booming second-hand fashion market. The global second-hand market is valued at US$210-220bn, growing 3x faster than firsthand sales. DHL plans to grow its locker network from 18,500 to more than 30,000 locations by 2030, with 67% of German online shoppers already selling items via marketplaces. The partnership combines Vinted's 17 million UK users with DHL's 41,000 parcel points to make circular fashion logistics more accessible.

ESG & Regulation

European Berries Lead with 90% Quality Trust, 87% Sustainability Rating

A Berry Swing survey of 300+ consumers in Livigno found 90% associate European berries with quality and reliability, 87% rate them more sustainable than non-EU alternatives, and 88% deem them healthier. Global berry cultivation grew 117.5% between 2015–2024, reaching 282,000 hectares; production hit 2.15 million tonnes in 2024 and is forecast to reach 3.2 million tonnes by 2028. The EU-backed, three-year Berry Swing project promotes traceability, safety, and regenerative practices across Italian and German supply chains.

Procurement

BMW cuts 8,000 jobs by 2027 amid EU supply chain retooling

BMW plans to cut ~8,000 global positions by 2027 — primarily in administration and development — as shrinking margins (down to 2.3% in automotive) and collapsing China deliveries (−30.2% Q2) force structural change. Simultaneously, EU industrial policy pushes for regionalized, policy-aligned auto sourcing. New CEO Milan Nedeljkovic is revisiting 'untouchable' processes across procurement, production, and development — highlighting how lean operations now collide with geopolitical supply chain constraints.

Europe Supply Chain

UK DBT pledges £600M for aerospace freight innovation

The UK Department for Business and Trade has pledged £600 million to advance aerospace innovation, including more than £500 million for green air travel R&D and a £100 million supply chain fund. Announced by Secretary Jonathan Reynolds at the Farnborough Airshow, the plan supports freight modernisation, aims to double the sector’s market value by 2035, and responds to Prime Minister Andy Burnham’s 10-year reindustrialisation agenda. The initiative directly impacts air freight reliability, emissions reduction, and UK-wide skilled job creation.

ESG & Regulation

5U AI raises $3.2M to scale freight-agentic AI platform

Munich-based 5U AI has raised $3.2 million in pre-seed funding to scale its freight-agentic AI platform across Europe. Co-founded in 2025 by Technical University of Munich graduates Yagiz Abik and Fehmi Şener, the startup deploys multi-agent AI workers that execute operational tasks — from quotations and bookings to invoice reconciliation — while capturing decision logic to build institutional knowledge. Backed by ex-leaders from DHL, Maersk, DSV, GEODIS, and CEVA Logistics, 5U AI is already live with TCI International Logistics across air and ocean freight. The round, led by London’s Emerge Capital, supports product development and European go-to-market expansion.

Europe Supply Chain

Verdion completes €310M European Logistics Fund with Leipzig warehouse fully leased

Verdion has fully leased its 11,872m² Leipzig warehouse—completing the speculative development phase of its €310 million Verdion European Logistics Fund 1 (VELF 1), launched in September 2020. The asset, certified to DGNB Gold, was acquired on a 40,000m² site in 2021 and now hosts a major textile service provider. An adjacent 8,500m² building is occupied by overnight express provider nox. Located between the A9 and A38 motorways near Leipzig/Halle Airport, the site exemplifies demand for sustainable, well-connected urban logistics infrastructure across Northern Europe.