For many businesses, the ability to respond quickly to changing supply and demand has become as important as controlling costs, prompting them to rethink where they manufacture goods and how they move them to market.

Manufacturers who have traditionally sourced components from Asia for their European markets are increasingly turning their attention to countries in Eastern Europe to help them balance costs with flexibility and risk management, and for the European logistics sector, this change presents both opportunities and challenges.

Why Multimodal Transport Is Gaining Ground

Nearshoring is changing more than where goods are produced, it is also reshaping how they move across Europe. As manufacturing shifts closer to end markets, businesses are increasingly combining road, rail, sea and inland transport services to create supply chains that are both flexible and efficient.

Whilst ocean freight remains critical for global trade, demand for road, rail and short-sea shipping services in and around Europe is increasing as production moves closer to end markets and goods can be delivered in a matter of days rather than weeks. As businesses look to balance cost, speed, and environmental performance, intermodal solutions are becoming increasingly attractive.  

The Growing Role of Regional Distribution Hubs

Central distribution hubs are key components of European supply chains. As businesses continue to move their operations closer to end markets, the need for strategically located warehouses and fulfillment centres that can connect production sites with consumer markets efficiently is rising. New central hubs are therefore being set up in countries including Poland, Hungary, Czechia and Romania to provide:

• Regional distribution centres  
• Cross-docking facilities
• Multi-country fulfillment networks
• Inventory visibility technologies

In the UK, this is demonstrated at London Gateway, which is one of the country's largest integrated logistics hubs, combining deep-sea port connectivity with warehousing and distribution capabilities at its adjacent Logistics Park. In Belgium, our latest investment in a €48 million temperature-controlled logistics hub in Antwerp is expanding cold chain capacity and supporting businesses that require faster and more resilient access for perishables to European markets.

How Nearshoring Can Support Lower-Carbon Supply Chains

With growing regulatory pressure and corporate sustainability commitments, companies are seeking lower-carbon alternatives for cross-border transport. As shorter transport routes generally mean lower transportation emissions, nearshoring can help businesses reduce their carbon footprint, whilst also improving supply chain resilience.

Across our network, we’re helping customers cut emissions whilst also improving speed and reliability. These improvements are supported by initiatives such as our rail-first Modal Shift Programme, electrified yards, high-efficiency warehousing, port-to-door route optimisation technology, and our groundbreaking Carbon Inset Programme.

Managing Greater Supply Chain Complexity

Despite its advantages, nearshoring is not without its complications. Many businesses are increasingly transitioning from a small number of large offshore suppliers to a wider network of regional manufacturing locations. This can increase supply chain complexity and require more sophisticated logistics coordination. To overcome these challenges, businesses will need to continue investing in digital platforms, end-to-end tracking, and data-driven planning tools. By tracking shipments in real time across sea, land, and air, they can gain emissions insights and keep inventory moving efficiently.

Nearshoring's Lasting Impact

Nearshoring is becoming a strategic priority for businesses across Europe, increasing demand for logistics networks that can connect manufacturers, distribution hubs and customers with greater speed and control.

As a global end-to-end logistics provider, we are well positioned to support these evolving supply chains. Our integrated sea-rail-road solutions connect ports, inland terminals, freight forwarding, contract logistics, and marine services through one network that links Europe to global markets, giving you more ways to respond to change when routes come under pressure.  

Discover more about the trends that are shaping global trade in our whitepaper, A $60.7 Billion Opportunity: Multimodal Transport and the Future of Global Trade.