Intermodal nearshoring solutions: New EU law changes everything – Why the linear supply chain will be obsolete from 2026 onwards

Circular economy instead of a one-way street: This is how logistics companies are now securing the decisive competitive advantage

From cost drain to profit machine: This is why reverse logistics is now becoming a core business

The European logistics market is facing a historic turning point. With the planned Circular Economy Act (CEA) and a wave of stringent EU regulations, the window of opportunity for traditional, linear business models is closing for good. The circular economy is transforming from a soft environmental vision into a hard-nosed industrial policy measure. At the heart of this transformation lies the supply chain: reverse logistics, strategic nearshoring, and intelligent, data-driven container pooling will be crucial in determining market access, financing conditions, and profitability in the future. Those who dismiss this transformation as merely an additional bureaucratic hurdle risk not only painful compliance penalties but also their fundamental competitiveness. This article examines why logistics companies and supply chain managers must now radically restructure their supply chains to be circular – and how the shift from passive carrier to active system designer can become a genuine profit engine.

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The European Union's proposed Circular Economy Act (CEA) is no ordinary piece of environmental legislation. It is a structural program for the competitiveness of a continent that has recognized its linear economic model has led to a strategic dead end. Building on the recommendations of reports by Mario Draghi and Enrico Letta, and complemented by the Clean Industrial Deal and the Competitiveness Compass, the CEA is intended to play a central role in strengthening European industrial resilience and strategic autonomy. What at first glance sounds like mere regulation is, on closer inspection, a paradigm shift in industrial policy – ​​with profound consequences for supply chains, container logistics, and the entire B2B ecosystem.

Europe's structural vulnerability has been quantified since the Draghi report of September 2024: the EU needs at least €750 to €800 billion in additional investment annually to close productivity gaps and achieve its environmental and social goals. The core of the problem is well-known: weak growth momentum, a lack of innovation, and a dangerous dependence on raw materials, especially critical minerals, on China. China accounts for around 60 percent of global production of critical raw materials and controls approximately 90 percent of refining capacity, while Europe relies on Beijing for roughly 90 percent of its raw material imports and 98 percent of its rare earth magnets. While the US and China are systematically building their industrial ecosystems, Europe's lag in strategically crucial sectors is widening.

The Draghi report identifies three areas that urgently need to be changed: first, closing the innovation gap; second, more closely integrating decarbonization and competitiveness; and third, reducing dependence on critical raw materials and digital technologies from third countries. This is precisely where the circular economy comes in, forming the connecting link in this triangle. The circular approach decouples economic growth from linear resource consumption, reduces import dependence on primary raw materials, and creates the foundation for new, innovation-driven business models within the European single market.

The European Commission's Competitiveness Compass, adopted in January 2025, translates this vision into operational priorities: The CEA is explicitly named as an instrument to facilitate the free movement of circular economy products, secondary raw materials, and waste within the internal market, to offer high-quality recycled materials, and to strengthen demand for them. Formal legislative action is scheduled for the third or fourth quarter of 2026, meaning that companies must begin their strategic preparations now.

The end of the linear supply chain: A systemic break with the previous economic logic

The previous logic of global supply chains followed a simple principle: raw materials are imported, products are manufactured, delivered, consumed, and disposed of. This linear model optimized itself for decades for cost efficiency and global division of labor. The CEA breaks with this logic not gradually, but systemically.

The foundation for this transformation has already been laid by accompanying regulations that precede the CEA. The new Packaging and Packaging Waste Regulation (PPWR), in force since February 2025, sets the first structural marker with its mandatory application from August 12, 2026: 40 percent of all transport packaging used in the EU must circulate in reusable systems by 2030, and all packaging on the EU market must be recyclable by 2030. This is not a recommendation – it is a legal obligation with direct consequences for investment and procurement decisions. Furthermore, binding recycling quotas apply to stackable plastic transport packaging that is not part of closed-loop reusable systems: at least 35 percent from 2030 and at least 65 percent from 2040.

The Ecodesign Regulation for sustainable products (ESPR), in force since July 18, 2024, complements this with product-related minimum requirements and the phased introduction of the Digital Product Passport. Together with the Carbon Border Adjustment Mechanism (CBAM), which becomes fully mandatory from 2026 and imposes CO₂ prices on imports from third countries, a regulatory framework is created that systematically increases the cost of linear procurement models and structurally favors circular alternatives. Companies sourcing steel, aluminum, cement, or fertilizers from third countries will pay real CO₂ prices from 2026 onwards – a cost driver that fundamentally alters nearshoring calculations in several sectors.

In parallel, the EU is pushing ahead with the digitalization of goods traffic: From May 21, 2026, digital systems will completely replace paper-based procedures for waste shipments within the EU single market. This step has significant technological and logistical implications – it forces all actors in circular logistics to integrate systems immediately and simultaneously creates the data basis for transparent cross-border material flows.

From one-way street to roundabout: Reverse Logistics as a new core business

The transformation to a circular economy necessitates the development of so-called closed-loop supply chains, in which reverse logistics is no longer considered a peripheral issue but a strategic core business. Reverse logistics refers to the systematic return of products, components, and recycled materials from the consumer or end user back into the economic cycle – be it for reuse, refurbishment, recycling, or energy recovery.

Traditionally, reverse logistics was considered a cost center to be minimized. This view is outdated. Research shows that reverse logistics costs can be reduced by up to 19 percent through automated sorting and shared return networks. At the same time, returned materials and components generate measurable value: In the automotive sector, each reused part saves between 80 and 120 euros in raw material costs. Logistics is transforming from a pure cost factor into a value-added element within a regenerative production system.

For B2B companies, this means a fundamental redesign of transport planning. Delivery routes must be systematically designed to be bidirectional: the delivery of new goods and the collection of used products, packaging, or recyclables will no longer be planned as separate, isolated processes, but as an integrated system service. Empty runs when collecting secondary materials represent one of the biggest operational and environmental challenges – a problem that can only be effectively solved through cross-industry cooperation and shared logistics infrastructure. In cross-border road transport between Germany, France, and the Benelux countries, pooling pallets and reusable packaging can reduce the number of empty runs by up to 15 to 25 percent while simultaneously increasing the turnover rate of loading equipment.

Scientific studies confirm that while reverse logistics concepts in the circular economy are complex and can be hampered by a lack of knowledge and customer inertia, they are demonstrably environmentally friendly and economically sustainable because they reduce transport and storage costs. Companies that implement elements of the circular economy, such as remanufacturing and reverse logistics, achieve measurable improvements in their economic, environmental, and social sustainability performance.

Domestic market instead of global market: Nearshoring as a geopolitical necessity

The geopolitical upheavals of recent years – the pandemic, the energy crisis, Russia's attack on Ukraine, growing dependence on China, and US tariff policies under President Trump – have produced a key insight: Optimizing global supply chains based solely on the lowest purchase price is strategically risky. The CEA, embedded within the Clean Industrial Deal and the Competitiveness Compass, addresses this finding and actively promotes nearshoring effects by establishing a European single market for secondary raw materials.

By pooling raw material demand, creating regional recycling and raw material exchanges, and gradually harmonizing waste classifications and recycling standards within the EU, transport flows are successively shifting from transcontinental supply chains to intra-European exchange relationships. This creates a twofold effect: On the one hand, shorter, more resilient supply chains with less vulnerability to external disruptions are emerging; on the other hand, intra-European freight transport is becoming denser and more complex, placing new demands on logistics infrastructure.

A recent analysis by the strategy consultancy Strategy& demonstrates that nearshoring is not a simple panacea: Many companies that have relocated to Central and Eastern Europe are achieving significantly lower savings than expected, as wages in the target regions have recently risen faster than productivity in some cases. At the same time, the shortage of skilled workers in industry has become even more pronounced there than in Germany, and energy prices have almost tripled within just a few years. According to a survey by KPMG and the German Eastern Business Association, more than one in four companies surveyed (26 percent) are nevertheless considering relocating production activities from Germany to Central and Eastern Europe, with 39 percent expecting the region to become one of their most important procurement locations in the long term.

The attractiveness of Central and Eastern Europe no longer lies primarily in pure cost advantages, but rather in the availability of highly skilled workers, the progressive integration into the European single market, and the expected average economic growth of almost 3 percent in 2026. Poland is further expanding its importance as an economic anchor in the region, and Ukraine is developing into the number two investment destination. This is the true logic of nearshoring in the circular economy: it is not the cheapest location that wins, but the most resilient – ​​with short return transport routes, compatible recycling infrastructures, and a stable regulatory environment.

The CBAM exemption for intra-EU supply chains is a key economic lever: companies sourcing their intermediate products within the EU are not subject to the carbon border tax – a significant cost advantage that shifts the calculations for nearshoring in favor of European sources. Combined with the requirements of the EU Supply Chain Due Diligence Directive, which considerably complicates compliant supplier screening outside the EU, this sends a consistent political signal: the EU aims to regionalize its industrial value creation, using the circular economy as a core component.

Container logistics in structural change: From passive container to strategic system component

Container logistics is at the heart of systemic change. What previously functioned as a passive transport container is becoming an active, data-driven infrastructure component in the circular economy. This shift is not metaphorical – it is driven by concrete regulatory requirements and technical necessities.

Stricter regulations for the separation of waste by type – a key element of both the PPWR and the upcoming CEA – significantly increase logistical complexity. The differentiation of containers by size, material, and usage characteristics is growing considerably. For container logistics, this means a wider range of container types must be managed, cleaned, maintained, and operated in certified recycling systems. This increases capital requirements and operational complexity – but simultaneously opens up new service areas for pooling providers and third-party logistics (3PL) providers.

The concept of container pooling is gaining significant importance. Instead of each company maintaining its own proprietary fleet of containers, external pooling service providers manage standardized, shared transport packaging, which is collected, cleaned, and made available to the next user after each use. Reusable transport packaging achieves an average of around 35 cycles, which represents a reduction in packaging material of over 90 percent compared to single-use packaging. In the European OEM sector alone, crate pooling platforms can generate savings of €420 million annually.

Cooperative empty container management in maritime container logistics also demonstrates significant savings potential: The shared use of a container pool by several shipping companies and container leasing companies aims to reduce repositioning, transport, handling, and storage costs by strategically exploiting structural imbalances. Mathematical optimization approaches prove that cost savings can be demonstrated through the use of container pooling compared to uncooperative models.

This creates a strategic turning point for B2B shippers and freight forwarders: those who invest early in shared pooling infrastructures and enter into collaborations with 3PL providers secure access to standardized, cost-sharing systems. Those who cling too long to proprietary, one-way models risk not only compliance issues but also the loss of supplier accreditations, as large shippers are increasingly making ESG criteria a condition of their contracts.

Comparison of logistics models: Two worlds in contrast

The following overview illustrates the structural difference between the traditional linear and the circular supply chain in the crucial operational dimensions:

Logistics dimension	Traditional (linear) supply chain	Circular (circular) supply chain
Route planning	One-way street from producer to end customer	Bidirectional planning including reverse logistics
Container function	Passive transport container for goods	Digital data carrier and strategic sorting interface
Procurement channels	Global imports with long supply chains	Intra-European single market with a focus on nearshoring
Network structure	Independent, proprietary corporate fleets	Shared infrastructures and cooperatively used networks
Cost structure	Optimized for single transaction costs	System optimized across the entire material lifecycle
Regulatory requirement	Transactional Compliance	Life cycle documentation and ESG reporting requirements
Emissions model	CO₂ as an external cost factor	CO₂ as an internalized operating and allocation parameter

This comparison shows that the transformation not only changes operational processes but also touches upon the fundamental strategic logic of corporate management. Circular supply chains require a fundamentally different understanding of investment, cooperation, and data management.

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The Digital Product Passport: Data as a basic requirement for a closed loop

Efficient and legally compliant resource management cannot be achieved without comprehensive digitalization. The key instrument in this regard is the Digital Product Passport (DPP), which is designed as a core component of the ESPR Regulation and will become mandatory for an increasing number of industrial sectors from 2027 onwards.

The DPP is a standardized, machine-readable digital data set assigned to a physical product or packaging unit, containing information on origin, material composition, repairability, recycling instructions, and lifecycle data. From a logistics perspective, the DPP acts as a system integrator: it links physical container management with the digital data stream, enabling, for the first time, seamless, automated traceability of material flows – from production through use to return.

In March 2026, the European standardization bodies CEN and CENELEC published eight harmonized technical standards that define the technical foundation of the Digital Product Passport (DPP). These standards specify how data must be exchanged across complex global supply chains and regulate unique product identifiers, data carriers such as QR codes or RFID tags, and security measures to protect trade secrets. Furthermore, on July 19, 2026, the central EU-wide register for digital product passports will be launched, requiring a unique identifier to be registered when affected products are placed on the market.

The timeline for mandatory implementation is staggered: Starting in 2026, the rollout will extend to a broader range of products. Delegated acts are expected for iron and steel in 2026, for textiles and tires in 2027, and for furniture in 2028. The first mandatory battery passport, in accordance with the EU Battery Regulation, will enter into force in February 2027 and is considered a landmark practical test for the entire ESPR system. Companies that fail to establish this infrastructure will, in the medium term, lose both market access and contracts from ESG-compliant main contractors.

For container logistics, this means specifically: Every container or packaging unit receives a machine-readable identifier – QR code, RFID tag, or NFC chip – which establishes a direct link to the DPP system. Sensor-based fill level measurements, automated route planning based on real-time data, and integration into central EU registers, accessible to customs authorities, recycling companies, and clients, are becoming standard operational features. Large OEM 3PL partnerships, for example between automotive manufacturers and logistics service providers, are already co-investing in recyclable container fleets and real-time asset tracking systems, which are expected to reduce container loss by up to 40 percent and improve inventory turnover rates by a factor of 1.7.

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Overcoming resource dependency: Circular economy as security policy

Behind the regulatory framework of the CEA lies a profound geopolitical motivation. Critical raw materials are becoming a matter of power for Europe: The EU wants to become more independent from China and better protect its economy against future supply shocks. In recent years – most recently in 2025 – China has repeatedly halted or restricted exports of rare earth elements to the EU. At the end of October 2025, China suspended the restrictions for one year – a respite that by no means resolves the structural dependency.

The Critical Raw Materials Act (CRMA), in force since 2024, sets concrete targets for security of supply by 2030: at least 10 percent of the EU's annual raw material requirements from domestic extraction, at least 40 percent from domestic processing, and at least 25 percent from recycling. Furthermore, no single third country should supply more than 65 percent of the EU's annual demand for any strategic raw material. These targets are simply unattainable without a functioning circular economy – recycling and reverse logistics are therefore a direct pillar of the EU's security of supply strategy.

The EU has already approved 47 strategic projects under the CRMA, with total investments of €22.5 billion. In Sweden, rare earth elements are being mined and processed for magnets; in France, rare earth elements are being recycled from batteries; in the Czech Republic, lithium is being extracted; and in Poland, a rare earth separation plant is being built. This is complemented by the RESourceEU program, which expands the CRMA to include a diversification strategy for import partnerships, aiming to break dependence on individual suppliers. EU Commission President Ursula von der Leyen summarized the implications unequivocally: Europe has learned this lesson painfully in the energy sector and will not make the same mistake with critical raw materials.

This has direct strategic relevance for the logistics industry: those who master reverse logistics, recycling routing, and container recycling systems are not only compliant with regulations – they are part of the European raw materials infrastructure. Reverse logistics networks that systematically return batteries, electronic waste, or metal components to certified recycling facilities in Europe are becoming an integral part of the continent's critical supply chain.

Economic efficiency and risks: What the transformation costs and what it brings in

The economic logic of CEA is complex and cannot be reduced to a simple cost-benefit analysis. Companies face real investment needs that may be a burden in the short term, but can generate resilience and competitive advantages in the long term.

On the cost side, one thing is clear: Nearly 60 percent of German companies fear increased documentation requirements due to the transformation to a circular economy. Production costs initially rise due to higher costs for recycled materials compared to primary raw materials, and compliance with recycled content targets is sometimes simply hampered by a lack of sufficient secondary raw materials on the market. Investments in new container types, pooling systems, digital infrastructure, and compliance reporting are additional burdens. Denmark has already warned that planned new regulations could impose an additional burden of almost €86 billion on companies.

The benefits are substantial: Companies pursuing at least one circular strategy are, on average, more successful than those without circular approaches, as demonstrated by the German Economic Institute. Closed-loop supply chain models reduce CO₂ intensity by up to 44 percent and lower logistics waste by up to 35 percent. AI-supported route optimization and digital twins reduce empty mileage by up to 22 percent. In the automotive sector alone, Germany generates 37 percent of regional investment through battery reverse logistics and ESG-certified material flows.

In addition, there is the financing effect: Green financing instruments, including loans linked to the EU taxonomy, reduce the weighted cost of capital for compliant companies by up to 60 basis points. Those who invest early therefore benefit not only from lower raw material costs and operational optimizations, but also from more favorable financing conditions – a competitive advantage that accumulates over the entire business cycle.

The German Chamber of Industry and Commerce (DIHK) generally views the Common European Agricultural Fund (CAFF) as an opportunity for new business models, more efficient material flows, and increased raw material resilience, but also points to the risks: additional bureaucracy, potential disruptions to existing business models, and the danger that strict recycling targets will simply be impossible to meet due to a lack of available secondary raw materials. The amount of packaging waste in the EU has increased from 66 million tons in 2009 to 84 million tons in 2021 – that's almost 190 kilograms per capita annually. At the same time, almost 50 percent of all e-waste remains uncollected, while electronic waste is growing by around 2 percent annually. A realistic strategy must take both sides of this equation seriously.

The industrial policy dimension: Strategic autonomy through circular supply chains

The CEA is more than environmental policy – ​​it is a central element of European industrial strategy. The link between the circular economy and strategic autonomy is being made increasingly explicit in academic and political debate: circular economy solutions can directly contribute to the EU's Open Strategic Autonomy by reducing dependencies on critical raw materials. This is particularly relevant for key industries such as battery technology, semiconductors, and green technologies, where Europe is currently still heavily reliant on external supply chains.

The Clean Industrial Deal, presented on February 26, 2025, explicitly enshrines circularity as one of its six pillars. It aims to minimize waste, extend material lifecycles, and promote recycling, reuse, and sustainable production in order to maximize the use of Europe's limited resources and reduce its dependence on third countries for raw materials. For supply chain strategists, this means that the logistical transformation mandated by the CEA is simultaneously an investment in geopolitical resilience.

The development of sustainable finance also demonstrates the powerful interplay of these regulatory levels. Strategic raw materials now hold the same strategic importance as oil and gas did in the 20th century, as EU Commission official Koen Doens stated at the EIT Raw Materials Summit in Brussels. Power lies in the hands of those who control extraction, refining, processing, transport standards, financing, and industrial capacity – and strategic autonomy is not a defensive cost item, but a crucial investment in the long-term resilience of the European economy. Logistics providers that position themselves as enablers of this circular infrastructure will become a key strategic resource for a resilient Europe.

The draft Industrial Accelerator Act complements this picture by specifically stimulating demand for European-made, circular technologies and products through preferential rules in public procurement and low carbon requirements. The regulatory framework is thus complete: from product design and product passports to supply chain documentation and state procurement law – all policy levels are aligned.

Areas of action for strategically minded companies

Given the multi-stage regulatory framework – PPWR from mid-2026, CBAM fully implemented from 2026, DPP register from July 2026, initial DPP obligations from 2027, CEA legislative initiative Q3/Q4 2026 – the timeframe for strategic decisions is tightly limited. Companies must take action in three areas:

The first area of ​​action concerns infrastructure and partnership strategy. Participation in or co-design of container pooling systems and cross-industry reusable infrastructures is not a future option, but an operational requirement for 2026. Cooperation with 3PL partners who manage standardized, recyclable container pools must now be evaluated and contractually secured. Those who rely on proprietary systems for too long risk higher operating costs and compliance gaps.

The second area of ​​action is the digitization of material flows. The integration of track-and-trace systems, sensor-based level measurement, and preparation for DPP data exchange must be addressed immediately. RFID tracking and cloud-based platforms enable precise tracking of containers, pallets, and reusable containers across national borders. Those who view DPP merely as a bureaucratic burden are missing out on its strategic value: Those who possess and can analyze material flow data have an informational and negotiating advantage over less digitized competitors.

The third area of ​​action involves recalibrating the procurement strategy. The CBAM exemption for intra-EU supply chains, combined with the requirements for nearshoring-compliant supplier assessment, necessitates a systematic review of procurement sources. Secondary raw materials and recycled materials should be included in the strategic supplier portfolio as a serious alternative to primary raw materials – not least because a functioning EU internal market for secondary raw materials makes this procurement increasingly reliable and cost-efficient. Zero Waste Europe recommends further developing the CBAM with broader material coverage, extending EU ETS combinations to include additional environmental impacts, and introducing binding ecodesign criteria as a structural framework.

The logistics of the circular economy is the industrial policy of tomorrow

The Circular Economy Act, together with the already effective regulatory framework of the PPWR, ESPR, CBAM, and Clean Industrial Deal, is transforming the European supply chain and logistics landscape to an extent whose strategic depth is not yet fully understood. Container logistics is evolving from a passive transport sector to an active enabler of industrial circular systems.

For B2B platforms and logistics service providers, the following applies: Those who build the digital and physical infrastructure for circular material flows early on will participate in the growing internal market for secondary raw materials, secure ESG-compliant supply chain partnerships, and unlock financing advantages through EU taxonomy-compliant investments. The strategic question is not whether, but how quickly this transformation will be implemented – and who will help shape the rules of the new game, instead of merely following them.

The circular economy is not a voluntary sustainability project, but the new operating system for European industry. Those who understand this not only have a compliance advantage – they have a real competitive advantage that will translate into large market shares, better capital costs, and superior supply chain resilience in the coming years.

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