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Seven supply chain shocks in seven weeks

Feb 19, 2025 | , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Just seven weeks into 2025, global supply chains have already faced a whirlwind of challenges.

From industrial action to trade barriers and shifting alliances, businesses must stay agile to navigate ongoing disruptions. Here are seven of the most impactful developments so far this year.

1. US east coast port strike averted (8th January)
A major disruption was narrowly avoided as the International Longshoremen’s Association (ILA) and United States Maritime Alliance (USMX) reached a tentative six-year agreement. The deal, approved on 7 February, prevented a strike that could have crippled US east coast ports for months. A final vote on 25 February will confirm its ratification.

2. Uncertainty over Suez Canal return (19th January)
Despite a fragile ceasefire in Gaza, container ships will not be returning to the Red Sea anytime soon. Carriers remain cautious, fearing renewed instability and prioritising the established Cape of Good Hope diversions. Even if ships do resume transit, severe disruption is expected, with schedules taking up to two months to stabilise.

3. Trump’s trade policies spark concerns (20th January)
Following his inauguration, President Trump swiftly reignited trade tensions, threatening tariffs on Colombia, China, Canada, and Mexico. Proposals include a 25% levy on steel and aluminium from Canada and Mexico, with reciprocal tariffs also being considered for UK imports. The potential trade war could have widespread consequences for global supply chains.

4. US air cargo demand under threat (1st February)
Trump’s decision to impose a 10% tariff on all Chinese imports and temporarily suspend the de minimis exemption for low-value Chinese shipments has sent shockwaves through the air freight sector. While the exemption was reinstated, changes to eCommerce regulations could significantly disrupt air cargo flows into the US, which is expected to receive 1.4 billion eCommerce packages this year.

5. New Asia shipping alliances reshape trade (2nd February)
The long-anticipated shift from three major container alliances (Ocean, THEA, 2M) to four key players (Ocean, Premier, Gemini, MSC) is now in effect. Asia-North Europe scheduled liner capacity will shrink by 11%, yet the number of weekly sailings will increase from 26 to 28. These changes will reshape global shipping networks for years to come.

6. European road freight rates stabilising (4th February)
After three years of decline, European road freight spot rates may have hit their lowest point. According to the European Road Freight Rate Benchmark, spot rates fell just 1% year-on-year in Q4 2024. While demand remains weak, cost pressures have kept rates 15% above pre-pandemic levels, with short-term volatility expected.

7. Carriers cut sailings to stabilise rates (14th February)
Shipping lines are aggressively blanking sailings to ease the transition to new alliance schedules and sustain freight rates. Between 17 February and 23 March, 51 sailings have been cancelled across key east-west trade routes, with February’s cancellations rising to 133 from 104 in January. Further capacity withdrawals and a general rate increase (GRI) could follow if demand fails to recover.

With trade disputes, shipping realignments, and geopolitical instability shaping global supply chains, the first quarter of 2025 has already presented significant challenges.

Staying ahead requires proactive strategy adjustments to mitigate risks and build resilience. That’s why we share these insights and why your Metro account management team is always by your side, ready to provide expert advice, share knowledge, and develop bespoke solutions tailored to your supply chain needs.

For high-level support, EMAIL Andrew Smith, Managing Director.

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Uncertainty grows as US tariffs target China

Feb 5, 2025 | , , , , , , , , , , , , , ,

While last-minute negotiations resulted in a temporary reprieve for Canadian and Mexican imports, President Trump’s new tariffs on Chinese goods from the 4th February have already triggered retaliation, adding further pressure to international supply chains.

US tariffs on Canadian and Mexican imports have been put on hold for at least 30 days following security commitments from both nations. This delay offers temporary relief for critical trade lanes, including automotive components, electronics, and pharmaceuticals.

Canada has pledged increased border enforcement measures, including new personnel and surveillance technology, while Mexico has committed to deploying additional forces to its border. These actions have led to a pause in tariffs, but shippers should remain cautious as negotiations continue, with the risk of duties being reinstated if agreements are not finalised by March.

The US administration has implemented an additional 10% tariff on Chinese imports and in response China has introduced tariffs of up to 15% on selected US goods and imposed export controls, affecting critical technologies such as solar cell production. While these measures appear targeted, they contribute to an increasingly volatile trade environment, forcing businesses to reconsider sourcing strategies and logistics solutions.

US prepares further trade restrictions

Beyond tariffs, the US is tightening its stance on eCommerce imports by getting ready to suspend the de minimis exemption for shipments from China, as soon as adequate systems are in place to fully and expediently process and collect tariff revenue. Previously, goods valued under $800 could enter the US duty-free, but the removal of this exemption would be expected to severely impact cross-border eCommerce air cargo volumes.

In addition, new regulations, announced by US Customs and Border Protection, introduce additional filing requirements, increasing administrative burdens on online retailers and logistics providers. However, analysts suggest that while higher costs may impact some importers, consumer demand is unlikely to diminish significantly, given the relatively low average value of eCommerce purchases.

With ongoing negotiations between the US, Canada, and Mexico, and China’s measured response to tariffs, industry leaders remain cautiously optimistic. However, agility will be essential in navigating evolving trade policies and regulatory changes. As new agreements are brokered and tensions shift, shippers must remain adaptable to mitigate risks and capitalise on emerging opportunities.

As global trade policies shift and new tariffs reshape supply chains, proactive planning is more critical than ever. At Metro, we leverage award-winning services and deep industry expertise to help businesses navigate evolving trade barriers, regulatory changes, and supply chain disruptions.

Whether you need to mitigate the impact of tariffs, ensure compliance with new regulations, or adapt sourcing/export strategies, our tailored solutions keep your supply chain resilient and competitive.

EMAIL Andy Smith, Managing Director, today to explore how Metro can safeguard your supply chain and support your business in 2025 and beyond.

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2024: Reflecting on a Dynamic Year in Global Supply Chains

Dec 18, 2024 | , , , , , , , , , , , , , , , , , , , , , ,

As 2024 comes to an end, we look back at a year filled with extraordinary events that shaped the global supply chain landscape. From geopolitical challenges to shifts in logistics trends, the past year has underscored the importance of resilience, adaptability, and innovation in our industry.

Here are just a few of the major supply chain developments we covered and that defined 2024:

Houthi attacks in the Red Sea: The crisis continues, forcing vessels to divert around the southern tip of Africa, creating new delays and challenges for global trade.

Global RoRo capacity shortages: The shipping of automobiles was heavily impacted as carriers grappled with fleet reductions from the pandemic.

Labour unrest: Strikes surged 42% year-over-year, including a six-week standstill at the Ports of Los Angeles and Long Beach.

Port of Baltimore closure: The collision and collapse of the Francis Scott Key Bridge caused a three-month disruption.

eCommerce growth: Air freight demand soared on Asia-North America lanes as online shopping reached new heights.

ILA strike: A three-day US East Coast dockworker strike in October highlighted ongoing tensions over automation, with another strike looming in January 2025.

Global reefer shortages: The demand for refrigerated containers remains unmet, impacting perishable goods transport.

Political shifts: The re-election of Donald Trump signals potential changes in trade policies, with protectionism and tariffs on the horizon.

Shipping alliances: New alliances reshaped container shipping routes, including Maersk’s departure from Felixstowe.

Metro’s Highlights

2024 was also a year of achievements for Metro Shipping:

Air Freight Business of the Year: We were proud to receive this accolade at the Logistics UK Awards.

Road freight expansion: Our growing road freight division continues to support our clients’ evolving needs.

Publishing sector portfolio launch: We introduced tailored logistics solutions for the publishing industry.

Great Place to Work: Metro was officially accredited, reflecting our commitment to a positive and empowering workplace culture.

As we get ready to step into 2025, we are prepared to face challenges head-on, supporting our customers with expert insights, seamless operations, and innovative solutions.

Thank you for your trust and partnership in 2024.

Wishing you a wonderful holiday season and a successful year ahead.

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Road freight market update and Metro review

Dec 10, 2024 | , , , , , , , , , , , ,

The road freight market in the UK and Europe is grappling with structural cost challenges, evolving regulations, and capacity constraints, while Metro’s road freight division continues to expand, delivering innovative solutions and outperforming market trends.

In the UK and Europe, road freight rates have remained under pressure due to structural cost drivers. The market stabilised in Q3 as softer short-term demand provided some relief. However, higher costs associated with fuel, tyres, insurance, and maintenance are sustaining elevated freight prices.

New truck registrations in Europe have fallen by 7.5% year-to-date, limiting capacity growth. As a result, many carriers are extending vehicle lifespans, with the average truck age now at 14.2 years. This decline in fleet renewal, combined with new EU regulations banning non-compliant rubber imports by year-end, has further tightened capacity and increased costs.

The TEG Road Transport Index showed a slight month-on-month decline but remains 4.4 points higher than the same period last year. Similarly, the haulage price index rose marginally in November but has seen a 10.4-point increase year-on-year.

Consumer demand around Black Friday offered a brief boost to the sector, with UK retail destinations seeing an 11% rise in footfall compared to the previous Friday. However, this temporary spike is unlikely to offset the ongoing challenges posed by inflationary pressures and volatile diesel prices, which continue to drive rates higher.

Metro’s road freight performance
Metro has made significant strides in its road freight division, upgrading its groupage services to France and Germany to deliver greater speed, efficiency, and customer satisfaction. These enhanced services ensure regular, reliable departures and seamless distribution throughout key regions.

France: Metro’s groupage services remain a standout feature, offering efficient, dependable shipping across the country.

Germany: Metro has expanded its presence, particularly in the Ruhr area, a vital industrial hub. Frequent departures ensure swift distribution through a trusted partner network.

Metro’s commitment to excellence extends beyond speed and cost. By prioritising communication, reliability, and trust, the company has built a reputation for hassle-free European shipping. Features such as GPS-tracked vehicles, dedicated routes, and door-to-door solutions ensure customers benefit from transparency and timely updates throughout the process.

Metro’s growth and outlook for 2025
The road freight division has seen exceptional growth, outpacing the market. While many competitors have experienced flat volumes, Metro has achieved over 50% year-on-year expansion, with a 60% increase in team size in the last year alone. The division is projected to grow by a further third in 2025, targeting an additional 40% volume increase.

Key priorities for 2025 include:
New groupage services: Recently launched lanes to the Netherlands, Poland, and Iberia are expected to play a significant role in Metro’s growth strategy.

French and German services: Continued development of these high-demand routes will remain a focus, with plans to enhance service frequency and efficiency.

Pan-European LTL and FTL services: The bulk of Metro’s volume is expected to come from its less-than-truckload (LTL) and full-truckload (FTL) offerings, supporting both inbound and outbound trade across Europe.

The road freight market faces continued pressure from rising costs and capacity constraints, but Metro’s proactive approach and investment in innovative solutions position it as a leader in the sector. By prioritising customer satisfaction and expanding its services, Metro is set to maintain its strong growth trajectory in 2025, even as the broader market navigates challenging conditions.

To explore the potential and benefits of our road freight services EMAIL Richard Gibbs to begin a conversation.

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