rail freight

Cross-Channel rail freight set to strengthen UK–Europe intermodal links

Plans to reintroduce regular cross-Channel rail freight services are moving forward, signalling a potential shift in how goods move between the UK and mainland Europe. 

As investment in infrastructure gathers pace, rail is re-emerging as a viable complement to established road and sea routes.

A government-backed agreement to redevelop the Barking Eurohub in east London is expected to play a central role in restoring regular rail freight services through the Channel Tunnel.

The site is being positioned as an international logistics hub, supporting intermodal trains that can move containers seamlessly between rail, road and sea. This would enable more direct connections between the UK and key European markets including France, Germany, Italy and Spain.

Currently, only a limited volume of rail freight passes through the Channel Tunnel, with most UK–EU cargo continuing to rely on short sea crossings and onward road transport. 

The planned expansion of intermodal rail services is intended to rebalance that model and provide greater flexibility for cross-border supply chains.

Rail offers an alternative to congested road and port networks

The renewed focus on rail comes at a time when road and port infrastructure across the UK and Europe is under increasing pressure.

Shifting a greater share of freight onto rail has the potential to reduce congestion on key corridors in the south-east of England, while also improving transit predictability for certain flows. For shippers, this introduces an additional routing option that sits between road and sea in terms of both speed and cost.

Rail freight volumes have already been growing steadily, with increases of around 5% year on year and further gains in intermodal traffic. Forecasts suggest continued growth over the coming decade, supported by both infrastructure investment and policy commitments to expand rail’s role in the supply chain.

Unlocking new options for UK–Europe trade

The return of regular cross-Channel rail services could create new opportunities for both imports and exports.

For UK businesses, this includes more direct access to European markets for a wide range of goods, as well as improved inbound flows of time-sensitive products such as food and consumer goods. Intermodal rail also offers a more structured and predictable alternative for moving containerised cargo across borders.

However, realising this potential will depend on how effectively rail services are integrated into wider logistics networks. Efficient onward connections, competitive pricing and reliable scheduling will all be critical to making rail a commercially viable option at scale.

Rail is unlikely to replace road or sea, but it can play a valuable role as part of a broader intermodal strategy, particularly for flows that benefit from a balance of speed, cost and sustainability.

This is where coordination becomes critical. Moving containers efficiently between ports, rail terminals and final delivery points requires a joined-up approach across multiple modes and geographies.

Metro has extensive experience in pan-European intermodal transport, combining road, sea and rail solutions, alongside regular UK rail services connecting primary ports with inland destinations.

If you are looking to explore how cross-Channel rail could support your European flows, or how to integrate rail into your wider transport strategy, EMAIL Andrew Smith, Managing Director at Metro, for a practical discussion tailored to your network.

US winter storm

US winter disruption ripples through truck, rail and intermodal networks

Severe winter weather across the United States has triggered the sharpest short-term trucking spot rate spike in more than three years, with disruption now filtering upstream into inland rail and intermodal hubs.

Snow and ice blanketing large parts of the eastern US drove a 40% week-on-week increase in spot market load posts. Dry-van spot rates climbed 11 cents in seven days, the steepest weekly rise since early 2021, while temperature-controlled (reefer) capacity jumped 15 cents week over week as shippers scrambled for freeze protection.

Unlike previous disruption events, the system now has less “buffer” capacity. Market reaction to the latest storm has been more severe than that seen after Hurricane Helene in September 2024, when spot loads rose 17% and rates increased just 4 cents week over week.

With tighter latent capacity, even short-lived weather events are producing outsized pricing swings.

Structural factors could extend pressure

January manufacturing data from the Institute for Supply Management moved back above the 50 baseline into expansion territory for the first time in more than a year, fuelling speculation that the freight recession may be bottoming out.

At the same time, federal enforcement activity around non-domiciled commercial driver’s licences (CDLs) and English-language proficiency requirements is reportedly pushing shippers towards asset-based carriers with company drivers. That shift could reduce available independent capacity, adding structural support to contract and spot rate increases, particularly as the spring produce season approaches.

If reefer markets tighten sharply during produce season, rate pressure is likely to cascade into dry-van networks, making elevated pricing more durable through 2026.

Rail and intermodal congestion follows the storm

While Class I rail line-haul performance has largely normalised, disruption has migrated inland. Rail terminals including Memphis, Chicago and Cincinnati are now experiencing post-storm congestion.

At key inland hubs, container availability times have doubled from around one day to two days. Data from technology provider E-Dray shows that average availability at Union Pacific’s Memphis terminal rose from 0.7 days pre-storm to 2.9 days after the event.

Transit times between Kansas and Illinois spiked to nearly 80 hours before easing to around 35 hours. Mississippi–Illinois transits briefly doubled to 19 hours before settling closer to 10 hours.

Drivers report waiting up to five hours inside terminals, missing delivery windows and triggering demurrage exposure. The issue is not chassis shortages but crane and yard capacity constraints in freezing conditions.

Union Pacific’s decision to levy “flip fees” for lifting containers from stacks, a charge not typically applied by other North American Class I railroads or major US ports, has added further cost pressure for drayage providers, costs that are not being absorbed by cargo owners.

What this means for importers and exporters

For international shippers moving freight into and out of the US, the key risk lies in the inland leg:

  • Higher US trucking spot rates can quickly erode landed-cost assumptions.
  • Intermodal congestion extends container dwell time and increases demurrage and detention exposure.
  • Reefer market tightening during produce season could distort both temperature-controlled and dry-van pricing.
  • Inland rail volatility can delay export positioning, affecting vessel cut-offs and schedule integrity.

Weather-related disruption may ease, but reduced capacity buffers mean price and service volatility can persist longer than the storm itself.

How Metro supports shippers through US inland volatility

Metro works with importing and exporting customers to reduce exposure to short-term inland shocks through:

  • Pre-planned multimodal routing strategies
  • Secured trucking and intermodal capacity with vetted asset-based partners
  • Active dwell-time and demurrage monitoring
  • Early visibility of rail terminal congestion
  • Contingency planning ahead of seasonal inflection points such as produce season

In volatile inland markets, control and foresight matter as much as headline freight rates.

If your US supply chain is exposed to trucking or intermodal risk, EMAIL our managing director, Andrew Smith, to learn about building resilience into your routing strategy, before the next disruption hits.

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Smart 2026 supply chains are being engineered for pressure

Supply chains are no longer judged on efficiency alone, in 2026 they will be expected to anticipate disruption and adapt at speed to actively support growth. The experience of the past year confirmed that stability is no longer a realistic planning assumption, but performance under pressure is.

Rather than a single crisis, 2025 delivered constant friction. Congestion resurfaced across ports and inland networks, capacity existed but was selectively deployed, and geopolitical and regulatory shifts altered trade flows long before any formal policy changes took effect. 

The result was a decisive shift in mindset: supply chains must be designed to operate in volatility, not merely recover from it.

That shift accelerates in 2026, as technology, resilience and sustainability converge to redefine how supply chains are planned, financed and executed.

Resilience becomes a competitive advantage

If 2025 proved anything, it was that capacity on paper does not guarantee performance in practice. Across ocean, air and road freight, service reliability was dictated by execution: blank sailings, schedule volatility and inland bottlenecks determined what actually moved.

In response, supply chain design is moving beyond simple continuity planning toward resilience, where networks are designed to adapt and improve under stress.

Common characteristics include:

  • Multi-route and multimodal playbooks rather than single-lane optimisation
  • Near-shoring and regionalisation to shorten lead times and reduce exposure
  • Centralised planning paired with regional execution for faster response

These approaches reflect a broader shift away from cost-minimisation toward risk-adjusted performance.

Warehousing becomes a strategic control point

Warehousing emerged as one of the most critical differentiators in 2025 — a trend that intensifies in 2026. With transit times less predictable and congestion harder to avoid, inventory positioning and fulfilment speed have become central to supply-chain resilience.

High-performing shippers increasingly treat warehousing as an active control layer, not passive storage. Key developments include:

  • Greater use of strategically located facilities to buffer disruption
  • Tighter integration between warehousing, transport and customs planning
  • Investment in automation and robotics that flex with demand and seasonality

This is particularly important as omnichannel and e-commerce pressures continue to grow, demanding seamless support for direct-to-consumer, BOPIS and rapid fulfilment models alongside traditional B2B flows.

From reactive networks to intelligent systems

One of the most significant changes heading into 2026 is the role of technology within supply chains. What began as analytical support is now moving into operational control.

AI-enabled tools are increasingly embedded across planning, procurement, inventory management and risk assessment, enabling supply chains to:

  • Anticipate disruption through predictive insights
  • Optimise routing, inventory and capacity decisions in near real time
  • Coordinate responses across multiple functions and geographies

As these systems become more connected, cybersecurity and data governance also rise sharply in importance. Protecting sensitive operational, commercial and customs data is now a core supply-chain requirement, not an IT afterthought.

Data quality, skills and execution define winners

Technology alone is not enough. The past year also highlighted a widening gap between organisations that could convert insight into action and those constrained by fragmented systems and poor data quality.

In 2026, competitive advantage depends on:

  • Clean, trusted and consistent data across logistics, customs and finance
  • Integrated platforms rather than disconnected tools
  • Teams with the skills to manage AI-driven, data-rich operations

Workforce transformation is therefore as important as digital investment. Roles are evolving toward data analytics, systems oversight and exception management, requiring targeted up-skilling to unlock value from new technologies.

Sustainability and compliance move into the operating core

Environmental and regulatory pressures are no longer peripheral considerations. Carbon pricing, emissions transparency, stricter customs enforcement and evolving trade rules are now shaping routing, mode selection and inventory strategy.

For most shippers, progress in 2026 will come less from premium “green” options and more from practical levers:

  • Smarter planning and consolidation
  • Modal optimisation and regionalisation
  • Stronger traceability and data governance

Sustainability and compliance have become operational constraints — inseparable from cost, resilience and service performance.

Designing supply chains that perform under pressure

Taken together, the direction of travel for 2026 is clear. Supply chains are being rebuilt as intelligent, integrated systems — shifting from reactive cost centres to strategic growth engines.

The most resilient networks are those that:

  • Integrate finance, procurement, logistics and technology decisions
  • Combine centralised control with regional agility
  • Invest equally in data, platforms, people and process

The objective is not to eliminate disruption, but to design networks that continue to perform when conditions are uncertain.

At Metro, this same mindset underpins how supply chains are assessed and supported. Stress-testing assumptions, strengthening visibility and applying execution-focused logistics, warehousing and transport strategies. In 2026, the differentiator will not be avoiding disruption, but owning a supply chain designed to operate through it.

ships at anchor

Container Shipping Faces Prolonged Excess Capacity

The container shipping industry is set for several years of structural oversupply, which will put significant downward pressure on rates, with fleet growth consistently outpacing cargo demand until the end of the decade.

Analysts point to a combination of record vessel orders and limited scrapping as the primary drivers of the imbalance. By mid-2025, global carriers had ordered 2.3 million TEU of new capacity, only slightly below the record levels set in late 2024. The current order-book now totals 9.6 million TEU, equivalent to more than 30% of the active fleet. With 3.3 million TEU scheduled for delivery in 2028 alone, average fleet growth is forecast to remain above 6% per year.

The composition of new orders is also shifting. While demand for ultra-large ships of 14,000 TEU and above remains strong, the most striking increase has come in smaller units. Seventy-four feeder and regional vessels of up to 4,000 TEU were ordered in the first half of 2025, almost matching the entire 2024 total. This investment comes despite the fact that nearly a third of the world’s smaller ships are already over 20 years old, a share set to rise to around half by 2030.

Scrapping activity has stalled at the same time. Just ten ships totalling 5,454 TEU were demolished in the first six months of 2025, compared with nearly 49,000 TEU a year earlier. A strong charter market and resilient cargo flows, combined with continued diversions via the Cape of Good Hope, have encouraged carriers to hold on to older tonnage. Many remain wary of cutting capacity after recent shocks, including the pandemic and Red Sea disruptions, demonstrated the strategic value of surplus vessels.

On the demand side, global throughput is expected to rise 2.6% in 2025, supported by front-loading, fiscal stimulus, and lower effective tariff rates. But growth is forecast to slow to 1.7% in 2026 as inflationary pressures, higher costs, and weaker US job growth weigh on consumption. Asia–Europe routes, where the largest vessels are being deployed, are expected to feel the oversupply most acutely, while transpacific trades face uncertainty once front-loading unwinds.

The imbalance has clear financial and regulatory implications. Analysts expect profitability to bottom out in 2028, when the largest wave of deliveries coincides with a likely return of normalised Red Sea transits. At the same time, retaining older tonnage raises questions around emissions compliance and fuel efficiency as IMO decarbonisation rules tighten.

Industry projections suggest average overcapacity of around 27% through 2028. While unforeseen shocks may disrupt the outlook, the medium-term picture points firmly to a prolonged period of structural pressure on global container shipping.

With vessel supply set to outpace demand for years ahead, oversupply will continue to distort schedules and pressure rates. In this environment, booking space is no longer enough. You need visibility, agility, and the ability to adapt as conditions change, with blanked sailings and service adjustments likely without notice.

Metro’s MVT platform continuously tracks carrier KPIs and vessel position, comparing actual performance across alliances and adjusting supply chains in real time. This data-led approach maintain supply chain resilience, minimises disruption, optimises inventory planning, and safeguards service levels.

EMAIL Andrew Smith, Managing Director, to discuss how we can support your supply chain.