Markus Kanis, Global SVP – Chemicals at DP World, spends his days working at the intersection of global trade, infrastructure and supply chain strategy for chemical producers navigating a far more complex operating environment. In this exclusive, he reveals where the real pressure points lie and how integrated end-to-end networks, data and AI can turn volatility into competitive advantage.
In order, what are the top five challenges for European chemical logistics right now?
One of European chemical logistics’ most pressing challenges today is our structural cost disadvantage. European producers pay 3–4 times more for energy and feedstocks than competitors in the United States or Asia, and the regulatory and labour cost is higher, too12. This makes it hard to stay competitive.
The sector has also been grappling with global overcapacity and weak demand. Growing capacity in Asia and the US have created a glut of basic chemicals, pushing operating rates down and leaving European utilisation at historically low levels3.
Of course, we cannot overlook the ongoing impact of geopolitics on trade stability. Tariffs and shifting policies have impacted trade flows across industries, while the recent situation in the Middle East has affected the stability of chemical feedstock supplies4.
Another factor is environmental disruption. Extreme weather events and resource constraints are impacting production schedules and transport reliability, increasing the urgency for climate‑resilient logistics models.
Lastly, regulatory and operational complexity is on the rise. Stricter Dangerous Goods and Safety, Quality and Sustainability (SQAS) rules demand more paperwork and specialised assets – at a time when customs clearance now accounts for the single largest share of logistics delays, cited by 60% of supply chain leaders in a Global Trade Observatory (GTO) industry pulse survey we conducted late last year. Increasingly, regulation is not just about compliance – it is shaping how and where supply chains operate, from product formulation to regional distribution models.
Are supply chains becoming more resilient, or are global events compounding volatility?
I see evidence of both. On the resilience side, chemical companies are taking proactive steps. According to our GTO survey, 51% of global supply chain executives plan to diversify suppliers and 44% plan to raise inventories. Around 61% of respondents listed warehousing and logistics hubs among their top investment needs. We’re also seeing more interest in alternative routes: 46% intend to use new trade routes in 2026. These shifts all suggest that resilience is becoming more embedded in supply chain strategy across the board.
But the volatility influencing these trends clearly isn’t receding. The same survey shows that over half expected high policy uncertainty in 2026, a reality which is playing out – and certainly isn’t helped by the lack of standardised customs procedures worldwide. These factors are challenging, but they are compounded by shifting trade dynamics, tariff cahnges and fluctuating energy prices.
So yes, chemical supply chains are becoming more resilient, but they are having to evolve in an environment with many shocks and many moving goal posts. Resilience is improving, but so is the level of complexity it needs to absorb.
How has logistics evolved in terms of risk management, network design and operational effectiveness over the past five to six years?
The biggest shift I’ve seen is from a focus on cost optimisation to one of resilience and safety. Cost still matters, but it is no longer the defining metric. Companies have built more multimodal networks that can pivot quickly, using ports, inland terminals and alternative transport like rail and barge to reduce reliance on single corridors.
We hold long-term relationships with our chemical customers at DP World precisely because we specialise in such networks – ones that can switch from road to rail when a highway is congested (or, as demonstrated recently, from maritime routes to overland routes when disruption affects key trade lanes). That ability to reconfigure flows quickly across a global network is where scale and integration really matter.
More fundamentally, we are seeing a shift away from fragmented supply chain models towards integrated, end-to-end networks that provide greater control, consistency and visibility. The other biggest change I’ve seen is of course digitalisation. Real‑time digital visibility and predictive alerts provide a single version of the truth across every mode and market. In a sector like chemicals, where timing, handling conditions and compliance are critical, that visibility is essential. Integrated warehouse‑management and transport‑management systems, coupled with web‑based KPI dashboards and track‑and‑trace tools, give live control over inventory and shipments. Early movers who invested in these capabilities and multimodality are at a huge advantage in the current geopolitical climate.
Operational effectiveness is also improving through more certified infrastructure and automation. Our hazardous goods warehouses and multi‑user facilities are reducing handovers for customers, while integrated customs brokerage is making documentation simpler.
The remaining hurdle, however, is data quality and interoperability. Without clean, connected data, the benefits of all these digital capabilities are limited. That’s where I believe AI has potential.
Are there any ‘quick fixes’ to mitigate disruption and shortages in the short term?
There’s no single silver bullet, but there are pragmatic steps that can buy you time and protect service levels.
Building optionality into your network is the most effective thing chemical manufacturers can do. In a fragmented and volatile environment, flexibility is the closest thing to a quick fix. For instance, we work with lithium‑ion battery producers that needed compliant and adaptable logistics; we designed certified high‑voltage battery warehousing, flexible single‑ and multi‑user models, state‑of‑charge management and tailored transport solutions within our global network. That kept their operations running safely, whatever mode they used. Because those capabilities sit within one integrated platform, they can switch modes and routes without disrupting operations.
We’ve also worked with semiconductor and chip manufacturers who needed 24‑hour just‑in‑time deliveries and full visibility. By combining secure storage, customs brokerage, multi‑modal transport and real‑time track‑and‑trace systems, we provided round‑the‑clock precision and compliance they could depend on. That level of coordination is difficult to achieve in more fragmented supply chain setups.
Measures like these won’t solve all structural cost issues, but they will mitigate short-term disruption.
What role will AI play in shaping future logistics trends, safety and compliance, predicting threats and providing solutions before these threats become major challenges?
AI, along with digitalisation and automation, will be central, but we should be realistic about their current stage of maturity. Our GTO report shows that about 95% of firms already use AI, yet most of the benefits are still targeted improvements rather than sweeping change. The real shift will come as these tools are scaled across entire supply chain networks.
Like many of those executives, I expect AI to be one of the most impactful technologies shaping global trade in the next five to eight years, but barriers like cyber‑security, integration cost and data interoperability slow adoption for many businesses. Working with logistics partners that have the expertise and can alleviate those risks or concerns is key.
However, where I think AI is delivering value today is in augmenting human decision‑making. In Europe, we’ve seen around a 15% improvement in load capacity when trialling AI‑driven optimisation, which has reduced container usage and emissions for some of our customers. We’re also exploring pre‑clearing documentation with customs and collaborating on planning to avoid unnecessary delays, as well as using sensors and algorithms to monitor hazardous materials to ensure they stay within safe parameters in our warehouses.
The key is pairing AI with reliable data, tools and human expertise. Real‑time visibility systems and digitalisation are the basis of our transformation today. AI is starting to help us extract the right data faster, but it won’t replace human judgement; it’ll make it more informed and timelier.
How confident are you that logistics has entered a smart new era?
Despite everything going on in the world right now, I remain genuinely optimistic about where the industry can go. The conversations I’ve been having with chemical producers show that resilience is no longer a defensive posture – it’s a growth strategy. Supply chains are becoming a core driver of competitiveness, not just a supporting function.
Looking forward, I believe the opportunities lie in building truly integrated, data‑driven networks. From real‑time digital visibility and predictive alerts to AI and automation, new enablers of resilience are being implemented throughout the sector’s supply chains, improving daily decision making. Using these capabilities with end‑to‑end solutions can combine multimodal infrastructure and compliant handling to provide visibility and control like we’ve never had it before.
Achieving this requires collaboration, though. If shippers, logistics partners, regulators and technology providers can align shared data standards and operational practices, we can unlock the full potential of these tools across the global supply chain. We’ll see more corridors that can seamlessly switch between modes, more predictive maintenance that prevents disruption, and more circular logistics models that reduce waste and emissions. That’s the future I’m excited about.
References
https://www.alixpartners.com/insights/102mlki/european-chemicals-sector-navigating-prolonged-overcapacity-and-demand-weakness/#:~:text=1.%20No%20let,overcapacity
https://cefic.org/app/uploads/2025/05/Cefic-Advancy-study-The-Competitiveness-of-the-European-Chemical-Industry.pdf#:~:text=competitiveness%20factors%20%28PCF%29,regulatory%20costs%20compared%20to%20other
https://www.reuters.com/markets/commodities/trump-tariffs-force-much-needed-petrochemicals-contraction-2025-08-27
https://www.reuters.com/business/european-chemical-firms-hit-hard-by-iran-war-report-falling-q1-earnings-2026-04-13/#:~:text=,German%20
