Business transformation, as well as strategy
- DHL Express Europe CEO Mike Barra says global business is changing, and Europe is emerging as a new route as the company shifts its routes from Asia and the US to the developing Asia-Europe corridor using its “flexible fixed” air network.
- In the near term, partner mobility and end-to-end support are transforming supply chains, with countries like Hungary, Poland and Turkey attracting record investment as DHL doubles down on operational capabilities and data-driven business insights.
- Parra believes that Europe’s strength lies in the balance of speed and sustainability, with DHL developing electronic hubs, SAF-supported flights and 100 percent green facilities – proving that logistics can be fast, flexible and climate-smart.
Geopolitical uncertainty, changing tariffs, and an evolving global economy are changing global trade lines. This is most evident in Europe, where waves of foreign investment and changing trade flows are placing the region at the center of international trade. According to Mike Barra, CEO of DHL Express Europe, these changes are not only affecting how goods are transported, they are changing the very roots of logistics operations.
“We are seeing a shift in business corridors,” Parra explained. China, Hong Kong and America were our biggest trade corridors. Now we see more opportunities from trade lines from Asia Pacific to Europe.
This is not just a packaging renaissance, but a structural renaissance in international trade, driven by China’s growing economic expansion in regions such as Latin America and Europe. In response, DHL Express has leveraged 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 positions and routes as demand changes. “We have shipped aircraft from China and Hong Kong to the United States and from China and Hong Kong to Europe,” he noted.
Barra also pointed to the “DHL Geographic Tailwinds Initiative” — developed in partnership with NYU Stern using DHL’s Business Atlas and Global Connectivity Report — as an example of how the company stays ahead of the curve. “We basically picked the top 20 countries that are capable of growing 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 closeness, solidarity with friends, and “universal support” – once buzzwords – are now gaining momentum. “You can see a lot of electric vehicle companies investing in Hungary. We see production diversifying away from China, which could be a key market for distribution in Europe.”
Parra believes that flexibility is the key to overcoming persistent uncertainty. “We have the ability to stop and ground aircraft if necessary,” he said, referring to the company’s recent decision to temporarily suspend service to Israel due to airspace closures. “Business is like water falling down a mountain, looking for its lowest point, but business will find its way.”
A balance of speed and durability
As express logistics prioritizes speed, sustainability has emerged as a parallel demand – particularly in Europe, where regulatory pressures and consumer expectations are increasing. According to Barra, maintaining 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 down from our 2030 sustainability commitments of Sustainable Aviation Fuel (SAF) by 2030 and net zero emissions by 2050.”
Sustainability has become an integral part of DHL’s service offering. “We have a strong proposition that provides customers with facility certificates that they can use—especially as a public company—to present and share that they’re working with a provider that offers a sustainable product,” Barra noted. These include electrification of vehicles on the road, SAF in the air, and energy efficient buildings.
A recent example is the new DHL facility in Lyon. “It’s 55 percent more sustainable than the building we were in before,” Parra said. “It’s mostly 100% energy-efficient – LED lights, fast-closing doors, lots of wood use. All we’re doing now is putting on our sustainability hats and working against it.”
This focus also aligns with customer decisions. “There is a shift for consumers deciding which providers to use – do they offer sustainability, are they really committed, do they provide evidence?” Bara said. “So do we.”
European lessons from America
Having previously led DHL Express in the Americas, Barra is now implementing proven strategies in Europe, adapting them to the specific dynamics of the region. One of the most important trends, he says, is a “fit for growth” mindset — an approach that emphasizes long-term efficiency over short-term cost reduction.
“It’s proactive cost management,” he said. “It’s moving away from a short-term diet and into a healthy lifestyle. When you live a healthy lifestyle, cost management is done year-round – that’s what I brought from America.”
Another lesson that can be learned is what Barra calls “asset blocking.” “We have invested in Europe. We are built for growth,” he said. “But now is the time to take advantage of that investment. We’re not running our buildings at capacity today, so we have room to grow.”
This means developing European trade routes, increasing outbound shipments from Europe to Asia Pacific, the Middle East and Latin America, and leveraging DHL’s hub in Madrid to increase connectivity in Latin America. “It’s about going from Europe to Europe, to Europe, and making smart use of our existing infrastructure – like our €121 million investment in Lyon,” Parra explained.
Operational flexibility is also key. “We are looking for more points,” he said. “We go door-to-door, center-to-center. We choose the way – reducing kilometers, improving efficiency, reducing carbon emissions.”
A careful watch on the horizon
Despite the ongoing macroeconomic and geopolitical uncertainty, Barra sees great opportunity in Europe. “Macroeconomic indicators such as the Purchasing Managers’ Index (PMI) are showing encouraging signs.”
Growth is particularly evident in emerging markets in Europe. “You already see opportunities in Hungary, Poland, the Czech Republic, Romania and Turkey as a result of increased foreign direct investment,” he added.
However, the challenges are not over yet. “The biggest obstacle is these protracted wars,” admitted Parra. “It brings volatility and uncertainty that is not in our control.”
However, he is confident about the logistical flexibility. He said, “We have been facing crises since 1969. “Whether it’s the ash cloud, the 2008 collapse, or wars – we’re working on them.” “Our mission is to inform customers, support them, and help them run their business – without any obstacles.”
And for Europe? “It is time for Europe to intervene,” Parra said. “They declared it open. It’s ready to do business with the world.”
Post Comment