DP World: How Logistics Can Reduce Food Waste

Global food loss and waste remain a major challenge, much of it driven by logistics inefficiencies and mismatched supply and demand. Tackling this food waste crisis demands smarter coordination and forward planning – especially before goods reach the retailer.

DP World has published a new report uncovering the hidden value of perishables logistics and demonstrating how supply chain transformation can dramatically reduce food waste.

The cost of food waste in supply chains

Global food loss and waste are valued at around US$1tn, with the UN FAO estimating that around US$400bn occurs before products even reach store shelves. A significant portion is lost in transit, particularly in warmer regions where high temperatures impact storage and transport conditions.

From cold-chain gaps and limited temperature-controlled storage to overproduction, weak demand forecasting and inconsistent grading standards, inefficiencies across the logistics chain are driving major losses. Better end-to-end data sharing and stronger market access for perishable goods are critical to change this trend.

The impact extends far beyond economics. The UN Environment Programme estimates food waste generates 8–10% of global greenhouse gas emissions – most embedded within supply chains. Meanwhile, 2.8 billion people cannot afford a healthy diet and hundreds of millions continue to face hunger worldwide.

To reverse these losses, perishable supply chains must evolve. Understanding cargo owners’ needs and strengthening reliability are essential steps in keeping food moving efficiently and safely.

"If we are to address it, getting the logistics right couldn't be more important, especially in the Global South, where cold chain infrastructure requires more sustained investment," says Alfred Whitman, Global Vice President, Perishables & Agriculture at DP World.

"That's why this report serious, Without Logistics, matters. To build more reliable supply chains, we must know the price of disruption. And to improve logistics quickly, we need to know what cargo owners are prioritising or failing to prioritse."

Disruption to logistics

The report draws on survey data from cargo owners in the perishable goods sector, analysing how frequently logistics disruptions occur and their financial consequences.

Geopolitical turmoil and climate-related instability have become constant features of today’s supply chain landscape. A remarkable 93% of respondents cited climate-driven disruption as a major operational factor, with extremes such as heatwaves, floods and droughts now commonplace.

Among major shocks over the past three years:

• 76% faced climate-related crop shortages

• 35% were affected by the Panama Canal drought

• 27% experienced disruption from low water levels in the Rhine

• 91% reported strain caused by the Covid-19 pandemic

• 71% identified global port congestion as an ongoing issue

• 66% have been affected by the Russia-Ukraine conflict

• 54% saw impacts from shifting tariffs

• 41% reported fallout from waterway crises such as the Red Sea shipping disruption.

Costs and rewards

Research from King’s College London warns that escalating climate shocks could drive up to US$25tn in global supply chain losses by 2060. Firms facing recurring disruptions report rising costs and declining customer satisfaction – underscoring the financial and reputational risks of unstable logistics systems.

According to DP World’s findings, 72% of leaders report more customer complaints after disruptions, 65% have lost business or contracts, 60% say their brand image has suffered and 58% note reputational harm among partners.

Capability gaps and outdated infrastructure remain major risks. Around 88% of cargo owners identified technology or systems failures as serious interruptions, showing how fragile many networks remain.

When facing disruption, 53% of respondents turned to contract logistics, 51% relied on land transportation, 49% on supply chain technology and 47% on freight forwarding services. While 86% expressed confidence in their logistics partners, 94% said limited visibility across supply chains remains a major obstacle.

These results suggest that although partners are proficient at handling crises, predictive insights and real-time data are still lacking – preventing businesses from anticipating and mitigating disruption in advance.

"The scale of spending on resilience infrastructure matters, but only if it's targeted on developing reliable capabilities across the chain - and importantly, ensuring they actually work together," adds Alfred. 

Building resilience and sustainability

DP World’s report highlights five key actions to strengthen supply chain resilience and curb food waste. By tracking avoided waste and carbon intensity across the cold chain, companies can turn reliability into a sustainability metric, identifying exactly where problems arise.

Investing in predictive data analytics and AI enables early identification of potential issues, preventing spoilage before it occurs. Expanding regional cold-chain networks enhances freshness and control, while balancing cost and protection prevents large-scale losses. Finally, measuring logistics performance by product quality builds trust in partners and reinforces supply chain resilience.

With capable logistics networks and targeted investment in cold-chain infrastructure, perishable waste can be reduced dramatically – cutting emissions, protecting food quality and creating a more sustainable food system.