Globalisation Isn’t Dead - It’s Changing Shape
For the past few years, there has been a lot of discussion about the “end of globalisation.” Between the COVID-19 pandemic, geopolitical tensions, rising freight costs and ongoing supply chain disruptions, many businesses have questioned whether global trade was beginning to retreat.
But according to new OECD Trade in Value Added (TiVA) data, globalisation is not disappearing, it is evolving.
Rather than abandoning international trade, businesses are rethinking how their global supply chains operate. The focus has shifted from pure efficiency to a balance between efficiency, resilience and risk management.
Global Supply Chains Are Still Strong
One of the clearest signs of continued global integration is the amount of foreign value added contained in exports. In simple terms, this measures how much countries rely on imported goods, components and materials to produce their exports.
Despite the disruption caused by COVID-19, OECD data shows that by 2022 global integration had not only recovered but reached its highest level since 1995. Around 30.4% of exports across OECD economies contained foreign inputs, highlighting how interconnected international trade remains.
This is important for importers, exporters, freight forwarders and logistics providers because it confirms that international supply chains continue to play a critical role in global commerce.
Reshoring vs Nearshoring
In recent years, terms such as reshoring, nearshoring and friendshoring have become common across the logistics and supply chain industry.
Reshoring refers to bringing manufacturing back to a company’s home country.
Nearshoring involves moving production closer to the end market.
Friendshoring means sourcing from politically aligned or trusted countries.
While these strategies are becoming more common, the OECD says there is little evidence of widespread deglobalisation. Instead, businesses are diversifying supply chains and adjusting sourcing strategies to reduce risk while still maintaining access to global markets.
Regional Trade Is Growing
The data also shows stronger regional supply chains emerging across Europe and Asia.
European countries such as France, Belgium and Greece have increased regional sourcing within Europe, while Japan and Korea are relying more heavily on suppliers across East and Southeast Asia.
At the same time, global sourcing remains essential. Several European economies are increasing their use of Asian suppliers, while countries including Mexico, Colombia and New Zealand are also strengthening trade connections outside their immediate regions.
In other words, global trade is not shrinking, it is becoming more flexible and diversified.
Strategic Industries Are Adapting Differently
Some industries are seeing greater local or regional production, particularly sectors considered strategically important.
Industries such as:
Pharmaceuticals
Oil and gas
Energy-related manufacturing
have increased their reliance on OECD-based production.
However, sectors such as:
Textiles and apparel
Electronics
ICT equipment
Mining
continue to depend heavily on non-OECD manufacturing and sourcing.
This highlights that supply chain reconfiguration is happening selectively, depending on industry needs, production costs and supply chain resilience strategies.
What This Means for Logistics
For the global logistics industry, the message is clear: international trade is still growing, but supply chains are becoming more complex.
Businesses are no longer focused solely on finding the cheapest supplier. Reliability, geopolitical stability, transit times and diversification are now major factors in supply chain planning.
For freight forwarders, shipping companies and supply chain providers, this means:
Increased demand for flexible logistics solutions
More diversified shipping routes
Greater focus on supply chain visibility
Continued growth in regional trade corridors
Ongoing demand for international freight services
The Bottom Line
Globalisation is not disappearing, it is being reshaped.
The modern global supply chain is becoming more deliberate, more regional in some areas, but still deeply interconnected worldwide. Businesses are adapting sourcing strategies to improve resilience while continuing to rely on international trade for efficiency and growth.
For the logistics and freight industry, this evolving landscape creates both challenges and opportunities as global trade networks continue to transform.