- Global trade is transforming, and Europe is emerging as a new crossroads, says Mike Barra, CEO of DHL Express Europe, as the company transforms its routes from Asia and the US to the thriving Asia-Europe corridors using its “flexible fixed” air network.
- Close-in, buddy-haul and end-to-end support are reshaping supply chains, with countries such as Hungary, Poland and Turkey attracting record investments as DHL doubles down on operational agility and data-driven business insights.
- Parra believes Europe’s strength lies in balancing speed and sustainability, with DHL rolling out electrified hubs, SAF-supported flights and 100 per cent green facilities – proving that logistics can be fast, flexible and climate-smart all at once.
Geopolitical uncertainty, shifting tariffs, and an evolving global economy are reshaping the world’s trade lanes. This is most evident in Europe, where a wave of foreign investment and changing trade flows are repositioning the region at the center of international trade. According to Mike Barra, CEO of DHL Express Europe, these changes are not only impacting how goods are moved, they are transforming the operational backbone of logistics itself.
“We are seeing a shift in trade corridors,” Parra explained. China, Hong Kong and the United States were our largest trade corridor. Now we are seeing increasing opportunities from trade lanes from Asia Pacific to Europe.
This is not just a redirection of packages, but a structural reorientation of global trade, driven in part by China’s growing economic expansion in regions such as Latin America and Europe. In response, DHL Express has benefited from what Barra calls a “fixed-flexible network,” where 54% of its dedicated air network is fixed and 46% flexible, enabling the company to change aircraft locations and routes as demand changes. “We have transferred planes from China and Hong Kong to the United States, and from China and Hong Kong to Europe,” he noted.
Barra also pointed to “DHL’s Geographic Tailwinds Initiative” — developed using DHL’s Trade Atlas and Global Connectivity Report in partnership with NYU Stern — as an example of how the company stays ahead of the curve. “We basically selected the top 20 countries that have the potential to grow faster than their GDP,” he said. “In Europe, this includes the Czech Republic, Turkey, Hungary, Romania and Poland where there are increasing signs of foreign direct investment.”
He explained how close proximity, solidarity with friends, and “universal support” – once buzzwords – are now accelerating. “You can see a lot of electric vehicle companies investing in Hungary. We are starting to see production diversifying away from China into what could be a key market for distribution in Europe.”
Parra believes flexibility is key to overcoming constant uncertainty. “We have the ability to bend and stop aircraft if necessary,” he said, citing the company’s recent decision to temporarily suspend service to Israel due to airspace closures. “Trade is like water coming down a hill. It is looking for its lowest point…but trade will find its way.”
Balancing speed and sustainability
As express logistics continues to prioritize speed, sustainability has emerged as a parallel demand – especially in Europe, where regulatory pressures and consumer expectations are rising. According to Barra, striking a balance between the two does not represent a compromise, but rather a competitive advantage.
“Customers are asking for it,” he said. “And we, as a group – the DHL Group – are not backing away from our 2030 sustainability commitments on sustainable aviation fuel (SAF) and net zero emissions by 2050.”
Sustainability has become an integral part of DHL’s service offering. “We have a strong offering that provides customers with certificates of convenience that they can then use – especially as a public company – to present and share that they are working with a provider that offers a sustainable product,” Barra noted. This includes the electrification of vehicles on the road, SAF in the air, and energy-efficient buildings.
One recent example is DHL’s new facility in Lyon. “It’s 55 percent more sustainable than the building we were in before,” Parra said. “It’s mostly 100 percent electrified on the inside — LED lighting, quick-close doors, more use of wood. All we’re doing now is putting on our sustainability hat and working against it.”
This focus aligns with customer decisions as well. “There is a shift for customers making a decision about which provider to use – are they offering sustainability, are they really committed, are they providing evidence?” Barra said. “So do we.”
European Lessons from the Americas
Having previously led DHL Express in the Americas, Barra is now applying proven strategies in Europe, adapting them to the unique dynamics of the region. One of the most important trends, he says, is a “fit for growth” mentality – an approach that emphasizes long-term efficiency over short-term cost-cutting.
“It’s active cost management,” he said. “It’s moving away from short-term dieting and towards a healthier lifestyle. When you live a healthy lifestyle, cost management is done all year round – that’s something I brought from the Americas.”
Another lesson that can be imparted is what Barra calls “asset blocking.” “We have invested in Europe. We are built for growth,” he said. “But now is the time to capitalize on that investment. Today, we’re not running our buildings at capacity, so we have room to grow.”
This means improving intra-European trade lanes, increasing outbound shipments from Europe to Asia Pacific, the Middle East and Latin America, and leveraging DHL’s hub in Madrid to enhance connectivity in Latin America. “It’s about Europe to Europe, Europe out, and using our existing infrastructure intelligently – such as our €121 million investment in Lyon,” Parra explained.
Operational flexibility is also key. “We’re looking to do more point-to-point,” he said. “We’re going gate to gate, hub to hub. We’re optimizing the route – cutting kilometres, improving efficiency, lowering carbon emissions.”
Cautious monitoring on the horizon
Despite the ongoing macroeconomic and geopolitical uncertainty, Barra sees a huge opportunity in Europe. “Macroeconomic indicators such as the Purchasing Managers’ Index (PMI) are showing encouraging signs.”
Growth is particularly evident in emerging markets within Europe. “You are already starting to see opportunities as a result of increased foreign direct investment coming into Hungary, Poland, the Czech Republic, Romania and Turkey,” he added.
However, the challenges are not over yet. “The biggest obstacle is these long-term wars,” Parra admitted. “It brings volatility and uncertainty that is not within our control.”
However, he remains confident in the flexibility of logistics. “We have been dealing with crises since 1969,” he said. “Whether it’s the ash cloud, the 2008 collapse, or wars — we work on them.” “Our mission is to keep customers informed, supported, and helping them trade – no matter the obstacles.”
And for Europe? “This is the time for Europe to intervene,” Parra said. “They declared it open. It was ready to trade with the world.”
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