There’s a moment in every critical Service Level Agreement (SLA) parts network where something small reveals something structural. A part misses a four-hour SLA not because it wasn’t in the country, but because no one was quite sure who owned the handoff. A shipment sits at customs while teams debate who the Importer of Record should have been. Two regions quietly increase safety stock on the same SKU ‘just to be safe’. An escalation call includes five organisations and no single line of accountability.

Nothing catastrophic. Just friction. Individually, these moments look operational. Together, they are architectural.

How Fragmentation Creeps In

Global service parts networks rarely begin fragmented. They evolve that way. A regional specialist is added to close a performance gap. A repair partner shortens turnaround time. A trade advisor manages compliance complexity. A 4PL layer is introduced to connect it all.

Each decision is rational. Often necessary. But over time, orchestration becomes layered rather than unified. In high-availability environments such as cybersecurity infrastructure, optical networks, data centres and medical systems, that layering begins to create hidden costs.

Where the Costs Appear

Fragmentation first shows up in inventory. When regions operate with partial visibility of each other’s positioning, they hedge. The US carries stock to protect its SLA exposure. Europe does the same. APAC does the same again. Individually, the decisions make sense. At the network level, they inflate safety stock, tying up working capital in duplicated buffers that exist purely to compensate for uncertainty.

It also distorts performance reporting. One provider starts the SLA clock at dispatch, another at delivery attempt. Reverse logistics is measured separately from forward fulfilment. Dashboards appear aligned until volatility hits, and suddenly, no one can reconcile where the delay actually occurred.

Trade governance becomes another pressure point. In global service networks, customs clearance is not a back-office activity; it is part of the uptime system. When Importer of Record responsibilities shift between providers or vary by region, ambiguity creeps in. A customs hold under a four-hour SLA is no longer just a compliance issue. It becomes a service outage.

Reverse flows create their own consequences. Repairable assets moving across borders without unified visibility become what operators quietly call ‘dark inventory’. The asset exists somewhere in the network but cannot be deployed when it is needed. The forward network compensates the only way it can, by carrying more stock.

When problems escalate, fragmentation becomes most visible. In multi-provider models, root cause rarely sits neatly in one organisation. Escalations move sideways before they move forward. Accountability becomes sequential rather than simultaneous. Under stable conditions, the system absorbs that latency. Under disruption, including tariffs, geopolitical shifts and capacity shocks, the latency becomes exposure.

The Fragmentation Tax

Multi-provider strategies are often adopted to reduce concentration risk. That logic makes sense.
But in high-SLA service environments, fragmentation introduces a different risk: coordination failure.
When orchestration is disjointed, the network begins paying what might be called a fragmentation tax, in duplicated inventory, premium freight, delayed recovery times and the growing overhead required simply to keep the system aligned.

The tax rarely appears on a single P&L line. It accumulates quietly across buffers, expediting, working capital and management attention.

A Different Question

As global service networks expand and trade regimes tighten, leaders are starting to ask different questions. Not ‘Are our providers performing?’ but ‘Is our orchestration structurally unified?’, because in high-availability service networks, architecture is no longer just an operational choice. It is a resilience strategy. Every network pays for its design. The only question is whether the cost is visible.

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Leveraging the agility of its global network and its integrated logistics capabilities, the Group is deploying alternative multimodal solutions combining sea, rail, and road transport to maintain the smooth flow of logistics despite the situation in Hormuz.

Secure logistics corridors via the United Arab Emirates: Located south of the Strait of Hormuz, Khor Fakkan, Fujairah, and Sohar serve as strategic entry points for Gulf-bound flows.

From these ports, CMA CGM offers logistics corridors to serve:
• The main hubs in the UAE (Khalifa, Jebel Ali, Sharjah)
• Other countries bordering the Arabian Gulf via a combination of regional road and maritime transport

This multimodal organization ensures continuity and efficiency of supply chains in the region.

Alternative road corridor via Saudi Arabia

The port of Jeddah on the Red Sea also provides an alternative to passing through the Strait of Hormuz. From Jeddah, CMA CGM has established road corridors, with or without maritime connections, for onward delivery to Saudi Arabia (Dammam), the UAE, Qatar, Bahrain, Kuwait, and Iraq. This setup also allows flows to connect to the Mediterranean and Asia without exposure to the strait.

Complementary road solution via Oman

CMA CGM also leverages Omani ports to provide a third major alternative road route. These ports enable road connections to the UAE and northern Gulf countries combining road and feeder services, offering a reliable alternative for regional and cross-border flows.

Through this setup, CMA CGM aims to use its ability to manage geopolitical risks and provide robust, flexible, and secure logistics solutions in support of international trade.

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Torus will provide resilient, agile and integrated defence supply chain solutions, helping the UK defence sector adapt to the evolving threat landscape and build the agile capacity required to enhance sovereign capability.

Designed to help address the UK Government policy shift to readiness, visibility and data exploitation, Torus draws on alliance members’ proven capabilities and mission-critical expertise in military domain, procurement and supply chain. The alliance is underpinned by a shared commitment of collaboration, compliance and continuous improvement to solve complex challenges in the UK defence market.

• Amentum will provide overall integration and programme management based on more than 60 years of support to UK defence operations, procurement, logistics support, programme/project delivery and transformation. Its global expertise, built over decades of defence, aerospace and national security experience in the USA and UK, ensures interoperability with allied sustainment systems and proven global buying power. Last September, Amentum announced plans to add another 3,000 people to its current UK workforce of more than 6,000 over the next four years.

• GXO will develop and operate innovative logistics solutions, leveraging its more than two decades of experience partnering with leading aerospace and defence organisations. With A&D operations spanning more than 30 global sites, GXO recently bolstered its UK defence capabilities through the acquisition of Wincanton, a longstanding trusted partner to the UK defence and industrial sector. GXO currently employs more than 60,000 team members across 450 sites in the UK and is a Gold Award level member of the UK’s Defence Employer recognition scheme for its work with the Armed Forces.

• Accenture will lead digital reinvention with a core role to deliver digital enablement and integrated decision support capability. Accenture’s deep experience of defence logistics information systems and digital transformation will enable real-time, single-version-of-the-truth visibility and smarter, data and AI-powered decision making that balance readiness, cost and resilience.

• Maersk will provide global integrated movement solutions utilising its extensive network across multiple modes to enable global reach ensuring compliance with stringent security standards for defence and government cargo whilst ensuring the scale of its owned assets provide agility and resilience to allow defence to plan and react to a changing need.

Loren Jones, Amentum Senior Vice President, said: “Our combined global reach and military domain experience, specifically Amentum’s proven success in deployed logistics and integrating complex systems for the U.S. Government, perfectly aligns with the UK Defence sector’s requirement for future operational resilience and it’s imperative to move beyond systems optimised for just-in-time to ones of assured readiness and global reach.” 

Gavin Williams, Managing Director, GXO UK & Ireland, said: “The defence sector is tasked with responding to dynamic global challenges which has created substantial demands on its supply chains. GXO’s proven capability in the global defence sector optimises efficiency and builds resilience in complex supply chains, providing leading defence organisations with the assurance they will have the adaptive capacity required to deliver with confidence.”

Mark Smith, EMEA Defence Lead at Accenture, said: “This alliance brings together unmatched expertise in logistics systems and data-driven digital transformation – enabling scalable, interoperable solutions that enhance mission readiness. Accenture’s deep defence logistics knowledge and cutting-edge digital capabilities, refined through working with over 20 NATO countries, can help ensure operational continuity and resilience in complex global environments.”

Beyond focusing on supporting UK sovereign mission readiness, the alliance is committed to investing in UK infrastructure, contributing to economic growth and fostering digital skills in local communities.

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Jonathan Barrett (pictured, below), CEO, Kallikor, provided this comment:

“The challenge is that these plans often rely on assumed responses rather than tested outcomes. In practice, it can be difficult for organisations to see how different decisions – rerouting shipments, adjusting sourcing, reallocating inventory or changing service commitments – will actually behave across the entire supply chain once disruption begins.

“We’ve seen this before through the Suez Canal obstruction in 2021 and the Red Sea shipping disruption in 2023–2024, when pressure in one part of the global trading system forced companies to make rapid operational choices with limited visibility into the wider consequences.

“Many companies we work with have an answer on paper for how they would respond to disruptions like these. The ones with most confidence in that answer have already tested it — running scenarios to see how those decisions will actually behave across the supply chain before disruption forces the choice.

“The organisations navigating disruption best are rarely the ones reacting fastest. They are the ones that have already explored the scenarios and understand how their supply chain will behave before disruption forces the decision.”

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CoreX Ports & Terminals / Yilport Holding operates 22 Marine and 5 inland terminals in 12 countries and relies on a fleet of container handling equipment to meet strict customer deadlines in a wide range of demanding environments. To keep up with demand, Yilport decided to replace older equipment at four of its terminals with 19 of the latest Konecranes lift trucks to ensure continued safe and efficient operations and maximum uptime.

“We appreciate Konecranes’ continued participation in our equipment purchase tenders and their responsiveness to our operational requirements. The addition of these reach stackers, empty container handlers, and forklifts further strengthens our equipment fleet across multiple regions, supporting higher productivity, operational resilience, and service reliability. As we continue to expand our global terminal network, investments in modern equipment remain a key driver in delivering efficient and competitive port services to our customers worldwide,” says Erhan Çiloğlu, Deputy CEO & CMO, Yilport Holding.

This delivery reflects Yilport’s confidence in Konecranes. We’re proud to have delivered the right solution with our Turkish distribution partner Portunus playing a key role to make this happen, supported by our unmatched global after-sales service through our distribution partner network

says John Elisson, Regional Director MEA, Lift Trucks, Konecranes.

The 5 reach stackers, 5 empty container handlers, and 9 forklifts meet a wide range of capacities and handling requirements at four terminals. For deeper insights, ‘TRUCONNECT Remote Monitoring’ will collect usage data and send it via secure mobile connection to the Konecranes customer portal, where Yilport can follow one truck, a group of trucks or its entire lift truck fleet around the world. With up-to-date information about truck performance, the port operator can analyze and optimize its operations.

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All vessels will share the same specifications and form a new series, with deliveries scheduled from March 2026 through to 2028. The names draw inspiration from the company’s original and highly regarded Snow-class vessels.

The vessels will feature modern hull and propulsion designs, including energy-efficient engines engineered to meet stringent IMO and EU environmental regulations through to 2030 and beyond.

This order forms part of Cool Carriers’ ongoing fleet renewal strategy, ensuring continued competitiveness in the specialized reefer segment. Following this order, the company will have a total of 7 vessels on order, with 2 scheduled for delivery in the remainder of 2026.

Cool Carriers is both an owner and a time-chartered fleet operator, which includes leasing vessels from Japanese owners. The company’s expanding fleet represents a significant increase in reefer capacity, with vessels capable of carrying up to 14,000 pallets under deck and in containers combined.

Cool Carriers serves key global trade routes, including New Zealand to Europe (Kiwi fruit), Chile to the United States, Ecuador’s banana exports, and growing volumes from South Africa and Argentina to Europe.

As global demand for year-round fresh produce continues to rise the company plays a vital – if often unseen – role in maintaining resilient food supply chains. The introduction of the Snow-class vessels will further improve both delivery reliability and environmental performance.

Glenn Selling, Chief Operating Officer at Cool Carriers, said, “Cool Carriers is proud to introduce the Snow class. With a 2.5-metre deck height, these vessels represent a major step forward for the specialized reefer industry. Exporters will no longer need to choose between standard and high-cube pallets – the new vessels are designed entirely for high-cube cargo, matching the internal height of modern reefer containers.”

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The meeting formed part of ongoing engagement between industry and policymakers to assess how the post-Brexit trading arrangements are functioning in practice and to identify areas where processes could be improved for freight forwarders and their customers.

Representing BIFA was Pawel Jarza from the association’s Policy and Compliance team, who highlighted the operational realities faced by members when moving goods across the Irish Sea. While the Windsor Framework has simplified certain procedures, such as removing the requirement for export declarations on goods moving from Great Britain to Northern Ireland, freight forwarders continue to navigate a complex trading environment.

Key challenges discussed included the need to operate between two tariff regimes and determine whether goods are considered ‘at risk’ of entering the EU market. Additional requirements, including safety and security declarations and the implementation of systems such as Import Control System 2 (ICS2), also contribute to the complexity of border processes.

The discussion also addressed issues surrounding the movement of small parcels and lower-value consignments, where the detailed provisions of the framework can create practical difficulties for operators.

BIFA used the meeting to relay feedback from its members and emphasised the importance of continued dialogue between industry and regulators to ensure the framework works as effectively as possible.
Commenting after the meeting, Jarza encouraged members that trade between Great Britain and Northern Ireland to continue sharing their experiences.

“Freight forwarders operate at this border every day and have first-hand knowledge of what works and what does not,” he said. “If members encounter systemic issues, it is important that they let us know so we can raise these with government departments and the European Commission, and where possible propose practical solutions.”

BIFA will continue to gather feedback through its regional engagement in Northern Ireland and ongoing discussions with members to support improvements to the operation of the Windsor Framework.

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Starting 1st April, credits will be applied automatically to customers booking ocean freight forwarding services with DP World in Belgium, Portugal and Sweden, meaning qualifying importers and exporters will receive carbon credits directly every quarter.

Qualifying customers will receive Carbon Inset Credits at 100 kg carbon dioxide equivalent (CO2e) of containerised ocean freight per TEU shipped per quarter, at no additional cost. The offer applies once a threshold of 25 TEUs per quarter is reached. For example, a customer shipping 50 TEUs in a quarter will receive credits equal to 5,000 kg (5t CO2e) that quarter.

This new trial builds on DP World’s ongoing Carbon Inset Programme in the UK ports of Southampton and London Gateway. Launched in January 2025, the UK programme registered more than 250,000 TEUs and issued more than 9,000 tCO2e of Carbon Inset Credits.

Unlike traditional offsets which fund projects like tree planting, carbon insets reduce emissions within the value chain by using lower-carbon fuels or more efficient transport, helping customers tackle their Scope 3 emissions. Both programmes use carbon credits generated by deploying incrementally lower carbon fuel in DP World’s subsidiary, DP World Shipping Solutions.

The Insetify trial is supported by sustainability training, which will help customers learn more about the trial and how to better address supply chain emissions.

John Trenchard, VP – Sustainable International Supply Chains, Europe said:

Providing customers with multiple solutions to enable the decarbonisation of supply chains is important to DP World. As part of our proactive approach to working alongside clients, we are recognising an immediate focus on inland activity and a high level of residual emissions within ocean legs. The Insetify trial allows for a pragmatic approach to managing these residual emissions as part of a longer term, holistic plan. I would encourage organisations to explore how carbon insets can be used as part of intentional progress.

Bojan Knightly, Country Manager Sweden, Freight Forwarding said: “The launch of the Insetify trial will coincide with the opening of DP World’s new Stockholm and Gothenburg offices, which were recently announced as part of DP World’s landmark freight forwarding expansion into Scandinavia. Supporting DP World’s global net zero by 2050 ambition, DP World Sweden is also aiming to offer up to 25% of shipments via rail and sea in the first operational year to reduce road emissions and 100% e-documentation and online invoicing to eliminate paper processes.”

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The report tracks globalisation on a scale from 0% (no cross-border flows) to 100% (borders and distance have no impact). The world’s level of globalisation was 25% in 2025, in line with the record high set in 2022.

Globalisation is holding its ground – and that alone speaks volumes about its value… From poverty to climate change, the world’s biggest challenges can only be solved through global thinking. The DHL Global Connectedness Report shows that countries and companies are not retreating behind national borders. That is good news. We strengthen global ties by connecting markets, businesses, and people so they can adapt, diversify, and unlock new opportunities – even in uncertain times.

said John Pearson, CEO of DHL Express.

At the same time, today’s globalisation level of 25% underlines how far the world is from being fully globalised. In many areas, international flows could expand further in the absence of policy constraints.

AI boom and race to beat tariff hikes fueled trade in 2025

Global trade grew faster in 2025 than in any year since 2017, excluding the volatile Covid-19 period. U.S. importers accelerated shipments early in the year ahead of tariff increases. U.S. imports later dropped below prior-year levels, but rising Chinese exports to non-U.S. markets helped sustain global trade volumes. Trade in AI-related goods surged as countries and companies raced to build AI infrastructure. AI-related products drove 42% of goods trade growth in the first three quarters of 2025, according to WTO figures.

Trade outlook: growth continues, even with higher tariffs

Looking ahead, recent U.S. tariff increases are expected to modestly slow trade growth in 2026 – but not stop it. Global goods trade is projected to expand by an average of 2.6% per year through 2029, in line with the past decade. One reason trade can keep growing despite U.S. tariff hikes is that most trade does not involve the U.S. In 2025, 13% of imports went to the U.S., and 9% of exports came from the U.S. In addition, many countries are pursuing new trade agreements to secure access to alternative markets.

Information flows face barriers, people flows reach new highs

Beyond trade, the report finds diverging trends across other international flows:

• Capital: There is no broad shift of investment from foreign to domestic markets. Multinational firms still earn near-record shares of sales abroad. While announced greenfield foreign direct investment (FDI) fell in 2025, overall FDI flows rose, and cross-border M&A activity remained resilient.
• Information: Over the past two decades, information flows delivered the largest globalisation gains. Since 2021, growth has slowed and become more volatile. Geopolitical tensions and restrictions on data flows may now be materially limiting the globalisation of information.
• People: After collapsing during the Covid-19 pandemic, people flows have fully recovered. The latest data show international travel, student mobility, and migration all at record highs.

Singapore leads country ranking, Europe tops regions

In the report’s country ranking, Singapore again ranks as the world’s most globalised nation, followed by Luxembourg and the Netherlands.

Europe is the most globalised region, followed by North America and the Middle East & North Africa. The United Kingdom has the most broadly distributed flows worldwide. The United Arab Emirates recorded the largest increase in globalisation since 2001.

U.S.–China tensions affect only small share of global flows

The report also finds that ties between the world’s two largest economies – the U.S. and China – continue to weaken. However, these ties are surprisingly small in a global perspective. For example, trade between the U.S. and China accounted for 3.6% of world trade at its peak in 2015, before falling to 2.7% in 2024 and to only 2.0% during the first three quarters of 2025. The U.S.–China share of international business investment is even smaller – less than 1% in 2025.

No global split into rival blocs

Even as the U.S. and China decouple, most countries continue to engage with their longstanding partners. Over the past decade, only 4–6% of global goods trade, greenfield FDI, and cross-border M&A have shifted away from geopolitical rivals. Of these flows, most have not moved to close allies but to countries with flexible geopolitical positions, such as India and Vietnam. Overall, the world economy remains far from a broad split into rival blocs.

The politics and policy surrounding globalisation are much more volatile than the actual flows between countries… “Global trade patterns changed more in 2025 than they do in a typical year, but less than they did during other recent disruptions such as the early stages of the war in Ukraine. Sound decision-making requires a calibrated view of how much global business ties are really changing. The risks to globalisation are real, but so is the resilience of global flows.

said Prof. Steven A. Altman, Director of the DHL Initiative on Globalisation at NYU Stern’s Centre for the Future of Management.

Traded goods and greenfield FDI reach record distances

Geopolitical tensions and supply chain concerns have led many observers to expect a shift from globalisation to regionalization. In 2025, however, traded goods travelled the longest average distance on record (5,010 kilometres). The average distance for greenfield FDI projects also rose to a new high (6,250 kilometres). Most other international flows are stretching over longer distances as well, and longer distances indicate less regionalization. Predictions of a broad move from global to regional business have not materialized – at least not yet.

Published regularly since 2011, the DHL Global Connectedness Report provides reliable insights on globalisation by analysing 14 types of international trade, capital, information, and people flows. The 2026 edition is based on more than 9 million data points. It ranks the connectedness of 180 countries, accounting for 99.6 percent of global gross domestic product and 99.0 percent of the world’s population. A set of 180 one-page country profiles summarizes each country’s pattern of globalisation.

Read the full report here.

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As the conflict involving Iran intensifies, logistics and supply chain networks worldwide are feeling the strain. Rising tensions are once again placing strategic maritime chokepoints such as the Strait of Hormuz under heightened scrutiny, with carriers and insurers monitoring developments closely.

DHL has warned that volatility across Middle Eastern corridors is contributing to longer transit times, elevated insurance premiums and higher fuel costs. The company has indicated that contingency routing and risk mitigation measures are increasing operational complexity for customers.

Meanwhile, container lines are taking decisive action. In a customer advisory issued on 4 March 2026, Maersk announced it is temporarily suspending new cargo booking acceptance to and from several Gulf states – including the United Arab Emirates, most of Oman, Iraq, Kuwait, Qatar, Bahrain and parts of Saudi Arabia – until further notice, with exceptions for essential goods such as food and medicine. The carrier noted that ports including Jeddah, King Abdullah and Salalah remain operational, and advised customers to explore alternative routings or inland gateways where possible.

Maersk has also cautioned customers about elevated risk levels in Gulf waters, highlighting the potential for disruption, schedule adjustments and additional war-risk related costs as insurers reassess regional exposure.

Other major carriers including Hapag-Lloyd, CMA CGM and COSCO have similarly referenced increased insurance premiums and potential war-risk surcharges in affected regions, reflecting the broader risk environment confronting global shipping lines.

Data from container visibility specialist Vizion suggests the market reaction is already significant. According to the company’s Tradeview platform, container ports in the Arabian Gulf – particularly those located east of the Strait of Hormuz – typically account for around 3.4 million TEU of annual booked volume, representing an estimated US$140 billion in cargo value. However, Vizion reports that in the past two days daily bookings from shippers looking to import goods into these ports have fallen by 81%, highlighting how quickly geopolitical risk is influencing shipping demand and routing decisions.

While there has been no formal closure of the Strait of Hormuz, vessel traffic patterns have become more cautious. Shipping data indicates slower transit speeds and occasional holding periods as operators await security guidance before entering or exiting Gulf waters. Rather than large visible queues, the disruption is manifesting through staggered departures, extended voyage times and schedule unreliability – factors that ripple quickly through global container and energy supply chains.

The conflict’s impact isn’t confined to sea freight. Air cargo operations across key Gulf hubs including Dubai, Abu Dhabi and Doha have experienced periods of airspace disruption and operational constraints as authorities respond to regional security developments. Even temporary restrictions can reduce available capacity for high-value, time-sensitive goods. This dual disruption across ocean and air lanes has led to wider bottlenecks in sectors ranging from electronics to pharmaceuticals.

Even industries reliant on raw materials are under pressure. Heightened risk around key Middle Eastern transit corridors has raised concerns over the continuity of LNG and fertiliser exports, markets that are highly sensitive to any potential interruption in Gulf shipping flows.

For logistics professionals and supply chain planners, the current environment demands proactive risk management. Companies are revising routing strategies, building inventory buffers, and assessing alternative modes such as rail or air freight where feasible. With geopolitical tensions persisting, logistics leaders are preparing for continued volatility across critical transit points such as the Strait of Hormuz and the Bab el-Mandeb. Even the prospect of disruption is enough to reshape routing decisions, insurance costs and inventory strategies in 2026.

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