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Budget Pressures Raise Questions for Business

Jul 9, 2025 | , ,

Chancellor Rachel Reeves has triggered fresh uncertainty after cancelling a planned welfare reform expected to save £5.5 billion, leaving a significant hole in the Treasury’s accounts and raising the prospect of tax increases later this year.

Markets reacted swiftly: sterling dipped and government borrowing costs rose, reflecting investor concerns over how a growing £40 billion fiscal shortfall will be addressed. A revised budget is due this autumn, with attention turning to how the burden might be shared.

While no measures have been formally proposed, the freight industry is on alert. Possible changes include:

– Higher fuel duty, which would increase transport and delivery costs
– Stricter customs enforcement, potentially adding friction and delay
– Corporate tax rises, squeezing already tight logistics margins

The British International Freight Association (BIFA) has urged the government to consult with the sector before taking action, stressing the need for stability and recognising logistics as vital to UK trade.

Offering a broader view, the Bank of England’s latest financial stability report suggests most UK companies remain resilient. Even under pressure from global shocks, including tariff hikes, rising interest rates, and a 10% fall in earnings, most are expected to meet their debt obligations.

For business, the message is clear: policy uncertainty may be unavoidable, but financial agility and early engagement will be key to overcoming what comes next.

EMAIL Laurence Burford, Chief Financial Officer, today to explore how Metro can support your business through ongoing global disruption.

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The EU’s Digital Product Passport

Jun 24, 2025 | , ,

The European Union is introducing a new product reporting regime that will reshape how goods are traded across the region. The Digital Product Passport (DPP) will become mandatory for a growing list of product categories, starting from 2026, and will require detailed, standardised information to accompany goods throughout their lifecycle.

This initiative forms part of the EU’s Ecodesign for Sustainable Products Regulation (ESPR) and supports the region’s transition to a circular economy. For UK exporters and EU importers alike, it signals a fundamental shift in compliance and data-sharing expectations.

The Digital Product Passport will store structured information about a product’s materials, manufacturing origin, use, and disposal – all tied to a unique digital identifier. The aim is to make supply chains more transparent and help regulators, businesses and consumers make more sustainable decisions.

The data will be accessible via scannable tags or embedded links, and will need to be kept updated throughout the product’s life. 

Required details may include:

  • Material composition and sourcing
  • Repair and recycling instructions
  • Safety and conformity data
  • Energy or emissions profiles
  • Supply chain traceability

Phased rollout by sector
The DPP will be rolled out gradually by sector and intermediate materials:

  • 2027 – Textiles & apparel, tyres
  • 2028 – Furniture
  • 2029 – Mattresses

Intermediate materials:

  • 2026 – Iron & steel
  • 2027 – Aluminium

This means UK manufacturers and exporters serving these sectors must prepare to meet new digital reporting standards for goods entering the EU. Importers, meanwhile, will need systems in place to validate and manage this data as part of their compliance procedures.

Prepare Now
Although final technical specifications are still being defined, it’s essential to start preparing:

  • Map your product data and assess what’s missing
  • Engage with suppliers and manufacturers to trace information across tiers
  • Review IT systems to understand how DPP data will be stored, shared and updated
  • Anticipate regulatory checks at borders or in-market

The process may be complex, especially for companies working across multiple supply chain layers. But businesses that act early will be better placed to comply and to gain customer trust in increasingly sustainability-conscious markets.

At Metro, our technical solutions team is already exploring the digital infrastructure and data workflows that will be needed to meet DPP requirements. We’re helping UK exporters and EU importers plan ahead, manage compliance risk, and unlock long-term value from enhanced supply chain visibility.

To learn more or discuss how Metro can support your preparation for the DPP, EMAIL our managing director, Andrew Smith.

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Tariff Pause Triggers Surge in Ocean Freight Rates – But Legal Roadblocks Lie Ahead

Jun 11, 2025 | , , , , , , , , , , , , , , , , ,

Container shipping lines are driving spot rates sharply higher, with the 2025 transpacific peak season likely to begin earlier than usual, fuelled by a surge in US imports from Asia.

Spot rates on key routes are rising faster than during the pandemic-era boom. Carriers implemented general rate increases (GRIs) on 1 June and plan further hikes for mid-June and 1 July, seizing the moment while demand is high.

According to the WCI, Shanghai–Los Angeles rates surged 57% week-on-week, while Shanghai–New York climbed 39%. Since mid-April, West Coast rates are up 173%, and East Coast rates have more than doubled. For comparison, rates rose just 20% over the same period in 2021. Asia–Europe lanes are also rallying, with the Shanghai–Rotterdam index up 32% and Shanghai–Genoa rising 38%, the highest weekly increases in many months.

But this momentum may be short-lived, as a wave of new capacity is entering the market. On Asia–West Coast routes, supply will grow by 13% in June and 16% in July. This additional capacity is expected to blunt the impact of further rate hikes, and limit the length of the current rally.

At the same time, the legal outlook for Trump ‘reciprocal’ tariffs remains highly uncertain. On 29 May, a federal appeals court temporarily reinstated the tariffs, just one day after the US Court of International Trade ruled that the former president had exceeded his authority and ordered an immediate block. The Court of Appeals for the Federal Circuit in Washington paused that decision to consider the government’s appeal, with final briefs due by 9 June.

However, legal experts suggest that the original court ruling is on strong footing. Under the current framework, principally the International Emergency Economic Powers Act (IEEPA), presidential authority to impose broad-based tariffs is limited. The Court of International Trade ruled that Trump’s use of IEEPA to impose tariffs on non-emergency, peacetime imports likely overstepped constitutional bounds.

If the appeal fails, Trump’s tariffs will face two remaining paths: either a legislative push to expand presidential tariff authority through Congress, or a ruling from the Supreme Court. The latter remains a real possibility if the administration persists and seeks to test the constitutional limits of executive trade powers.

In the meantime, the legal limbo is prompting importers to accelerate orders while the tariffs remain suspended, adding further pressure to ocean freight markets. But with front-loading already well advanced, this year’s peak season is expected to be earlier and shorter than the usual August–October window. While carriers are determined to ride the wave of high rates, fundamentals suggest the next one or two GRIs may be the last before rates begin to level off.

With legal uncertainty surrounding US tariffs and ocean freight markets under intense pressure, early planning and expert guidance are more critical than ever.

Metro’s experienced sea freight and customs brokerage teams are here to support your transpacific and Asia–Europe supply chains, with in-market expertise and local operations in the US.

Whether you’re juggling critical shipments, reviewing tariff exposure, or seeking end-to-end compliance support, Metro has the insight and capability to keep your cargo moving.

EMAIL our managing director, Andrew Smith, today to stay ahead of disruption and secure your space at the best possible rates.

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Near-Shoring Gains Momentum Across EMEA

Jun 5, 2025 | , , , , , , , , , ,

Faced with rising tariffs, geopolitical risk, and ongoing disruption to global transport networks, a growing number of businesses are turning to near-shoring as a strategic way to strengthen supply chains.

Near-shoring, the relocation of manufacturing or sourcing to nearby countries, gained attention in boardrooms when the pandemic exposed the vulnerabilities of far-flung, overly concentrated supply chains, with the current tariff disruption renewing interest in the strategy.

Recent data reveals a clear trend: foreign direct investment (FDI) into near-shore manufacturing hubs in Central and Eastern Europe (CEE) and North Africa is up more than 60% compared with pre-pandemic levels. More than 15 destinations across these regions recorded five or more manufacturing investment projects each over the past year.

Companies are seeking to reduce exposure to tariff shocks, avoid over-reliance on a single geography or supplier, and better respond to market shifts. Unlike full re-shoring, near-shoring offers a balanced approach, retaining cost efficiency while improving agility.

Major global manufacturers are already making moves. A well-known French automotive brand invested €400m to expand its Turkish operations into an EU export hub, while Chinese electric vehicle manufacturer BYD is building its first European plant in Hungary. Hungary alone has seen a 140% rise in manufacturing investment over five years, with Poland, Romania, Slovakia, and North Macedonia also recording strong gains.

In North Africa, Morocco and Egypt are emerging as strategic alternatives. These markets combine population scale, cost competitiveness, and a growing skilled workforce, making them attractive to firms seeking stable, scalable supply options within reach of European customers.

Supply chain, cost, and environmental advantages
Beyond geopolitical resilience, near-shoring offers a wide range of operational and environmental benefits:

  • Shorter lead times: Reduced transit distances enable faster response to demand changes and shorter replenishment cycles.
  • Lower transport costs: Closer-to-home sourcing significantly reduces shipping spend and exposure to ocean freight volatility.
  • Less reliance on air freight: Shorter routes and predictable lead times reduce the need for costly, carbon-intensive air freight.
  • Lower emissions: A more regionalised supply chain helps reduce carbon footprints and supports ESG and net-zero targets.
  • Improved collaboration: Proximity improves communication, supplier relationships, and coordination across the supply chain.
  • Risk mitigation: Near-shoring builds resilience into operations, limiting the impact of global disruptions.

While near-shoring may not match Asia’s ultra-low production costs, countries such as Turkey, Hungary, Egypt, and Morocco offer a strong balance of affordability, labour availability, and growing infrastructure.

Long-term advantage through strategic sourcing
Near-shoring is no longer a short-term reaction to tariffs or global disruption, it’s becoming a foundational pillar of modern supply chain strategy. Brands that invest in supplier networks closer to their markets are gaining long-term advantage through speed, adaptability, sustainability, and reduced risk.

Power your near-shore strategy with Metro
Whether you’re exploring new EMEA sourcing options or already shifting production closer to home, Metro has the tools and expertise to optimise your near-shore operations.

  • Our MVT supply chain platform delivers vendor management and end-to-end visibility
  • Our dedicated EMEA and Overland department provides regional expertise and support
  • Our regular European road services, including market-leading Turkish services, ensure seamless overland freight and final-mile delivery

EMAIL managing director, Andrew Smith, today to streamline your near-shoring strategy and secure a more sustainable, resilient supply chain.

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