factory emissions

EU supply-chain rules may be easing but shipper expectations are changing

Sep 16, 2026 | , , , ,

The EU is reducing some sustainability and due-diligence obligations, but that does not necessarily mean businesses will need less supply-chain information. For shippers, the capabilities of their logistics partners could become increasingly important.

For years, businesses have been preparing for a more demanding era of European supply-chain regulation, with greater emphasis on sustainability, due diligence and visibility beyond their immediate suppliers.

Now Brussels is changing direction. The EU’s Omnibus simplification programme is reducing the scope of some requirements, delaying implementation and cutting the amount of sustainability information companies must report.

For shippers, particularly those outside the revised thresholds, that should reduce the direct administrative burden.

But something important has already changed. Large organisations have invested in systems and processes to understand their supply chains in far greater detail, while sustainability, procurement and logistics teams have become accustomed to collecting information that was rarely requested a decade ago.

Those expectations are unlikely simply to disappear.

Brussels reduces the regulatory burden

The Corporate Sustainability Due Diligence Directive (CSDDD) has been substantially scaled back, focusing requirements on the largest businesses (>5,000 employees and net t/o >€1.5bn) and pushing implementation back to July 2029.

Sustainability reporting is also being simplified, with significant reductions in mandatory datapoints intended to lower reporting costs.

Importantly for supply chains, the EU has sought to limit the extent to which large organisations can pass excessive reporting demands down to smaller suppliers.

That should reduce unnecessary bureaucracy, but there is an important distinction between information companies are legally required to collect and the information they choose to obtain to manage risk, sustainability and supply-chain performance.

The demand for supply-chain data is already established

Early sustainability reporting provides an indication of how far corporate practices have already moved.

Deloitte’s analysis of 200 early adopters found particularly extensive reporting among consumer businesses. More than 90% disclosed emissions associated with purchased goods and services, while 94% reported emissions from upstream transport and distribution.

Industrial businesses were also incorporating Scope 3 emissions into climate targets and transition planning.

That matters for logistics because much of the information required to understand those emissions sits outside the shipper's own organisation.

Consider a manufacturer outsourcing European distribution to a freight forwarder. The forwarder may use several regional carriers, which could in turn subcontract individual movements to smaller hauliers.

The shipper may have a commercial relationship with one logistics provider while the physical movement involves several organisations.

Increasingly, businesses want to understand what happens further down that chain.

Which carrier moved the shipment? Which route and transport mode were used? Were subcontractors involved? What emissions were generated? Are appropriate compliance checks in place? Can the underlying information be verified?

Those questions have value beyond regulatory reporting. They can support procurement, corporate governance, customer commitments, risk management and decisions about how supply chains should be designed.

The forwarder's role is changing

This has implications for how shippers select logistics partners.

Price, capacity and service will remain fundamental, but increasingly they may form only part of the assessment, as visibility, data and compliance become more critical.

Price + capacity + service + visibility + data + compliance

A forwarder that can move cargo efficiently but struggles to provide reliable information about the underlying movement may become less attractive to businesses with sophisticated governance or sustainability requirements.

The strongest logistics partners will increasingly connect physical freight management with technology, supplier oversight and usable data.

That changes the forwarder's role from simply arranging transport to helping customers understand and control increasingly complex supply chains.

Better data can support better decisions

There is also a danger that greater transparency simply creates more information. The real value comes when shippers can use that information.

Emissions data provides a good example. Knowing the carbon footprint of an individual shipment supports reporting, but consistent data across modes, routes and origins can also help businesses compare alternatives and identify where operational changes could reduce emissions.

Metro's MVT ECO platform measures CO₂ equivalent emissions at consignment level across transport modes and routes, using recognised logistics emissions methodologies.

This gives customers the ability to examine emissions across their freight activity rather than relying solely on broad estimates, supporting Scope 3 reporting as well as longer-term supply-chain planning.

The same principle applies more broadly: forwarder technology should not simply produce data because somebody has asked for it. It should help shippers make better decisions.

Procurement may move faster than regulation

Perhaps the most important change will therefore come through procurement rather than legislation.

Large businesses do not need regulation to require particular standards from logistics providers. They can incorporate them into RFQs, supplier codes, operating procedures and contracts.

Requirements developed by multinational businesses can then spread through the market as other organisations adopt similar procurement standards.

It means even companies unaffected by CSDDD or CSRD requirements may ultimately benefit from logistics infrastructure originally developed in response to them.

Better carrier governance, reliable emissions measurement, stronger data and improved visibility have operational value whether or not a regulator asks for them.

Choosing logistics partners for what comes next

The EU's simplification programme should make compliance more proportionate for many European businesses.

But reducing regulation does not reverse the broader movement towards more transparent and accountable supply chains.

For shippers, that makes the capabilities sitting behind a freight rate increasingly important.

The forwarders best equipped for the future will not simply provide competitive transport. They will combine networks and operational expertise with the systems, processes and data that give customers greater visibility and control.

For businesses reviewing logistics partners, the question may therefore be shifting from “Can you move our freight?” to “Can you help us understand, control and demonstrate how our freight is moved, while reporting on emissions?”

Metro combines international freight expertise with supply-chain technology and emissions visibility through solutions including MVT ECO, helping customers turn increasingly sophisticated data requirements into practical supply-chain insight.

Panama COSCO ship

Panama Canal constraints add another layer of pressure to transpacific shipping

Aug 19, 2026 | , , , ,

The transpacific market is entering an even firmer phase, with stronger cargo demand, restricted vessel capacity and new Panama Canal constraints combining to increase costs and tighten space, particularly into the US East and Gulf coasts.

Spot rates indexes have continued to strengthen through the summer, with Shanghai–New York increasing 10% and Shanghai–Los Angeles rising 6% WoW. These rises extend the rebound seen since July and reflect sustained demand from Asia, with deliberate capacity management by the container shipping alliances.

Carriers cancelled ten transpacific sailings in each of the past two weeks, with another seven cancellations planned for this week. By removing capacity, lines are supporting vessel utilisation and rates at a time when congestion and equipment availability in China are already restricting effective supply.

Panama becomes a capacity issue

The Panama Canal is adding another significant factor for Asia–US East Coast and Gulf Coast services.

Water management measures are reducing the maximum permitted draft for vessels using the Neopanamax locks. The Canal has progressively tightened draft allowances during 2026 as it manages Gatun Lake water levels and prepares for the potential effects of El Niño.

The restrictions do not necessarily reduce the number of vessels able to transit each day. Instead, they do affect how many containers individual ships can carry. A lower maximum draft can force heavily laden containerships to reduce their loads before transiting, effectively removing container capacity from services even when scheduled sailings continue operating.

That matters because more than half of the Neopanamax vessels serving the US East and Gulf coasts currently transit Panama. The effect could therefore extend well beyond the Canal itself, tightening available space on some of the transpacific's most important services.

The Canal's normal Neopanamax specification allows a maximum draft of 50 feet, illustrating how progressively lower limits can constrain vessel utilisation.

Costs are beginning to reflect the restrictions

Carriers are already responding commercially. Several lines have announced Panama Canal surcharges for Asia–US East Coast and Asia–Gulf Coast cargo, with further charges scheduled to take effect from September.

These additional costs arrive as freight rates are already strengthening. With carriers controlling capacity through blank sailings and Canal restrictions potentially reducing the amount of cargo individual vessels can carry, there is less spare capacity available to absorb increases in demand.

The result could be a less volatile but structurally firmer transpacific market through the remainder of the traditional peak season. Rather than dramatic week-to-week movements, shippers could face sustained pressure on rates, space and equipment availability.

West Coast routings gain strategic importance

US West Coast services avoid the Panama Canal altogether, potentially giving shippers another option when East and Gulf Coast capacity becomes constrained. However, any significant diversion of cargo towards Los Angeles, Long Beach and other Pacific gateways could increase pressure on vessel space, port capacity, rail connections and inland transport.

That inland element is becoming particularly important because US trucking costs are rising sharply. National dry-van spot rates remain more than 40% above 2025 levels, while the average shipper-paid spot rate including fuel increased by almost 50% year on year in July.

Pressure is particularly evident around the West Coast gateways. In Los Angeles, outbound shipper-paid spot rates rose more than 50% year on year in July, as stronger inland movements from the country's largest container gateway coincided with reduced available trucking capacity.

Higher costs do not simply reflect stronger freight volumes. In some US regions, expenditure has increased substantially despite falling shipment volumes, demonstrating how capacity withdrawal, carrier pricing and operating costs can drive rates higher even when demand remains subdued.

US diesel prices are around 40% higher year on year, increasing carrier costs and fuel surcharge exposure. Less-than-truckload pricing is also strengthening, with general rate increases typically around 7% and some contract renewals moving into double-digit increases.

For transpacific shippers, this changes the calculation. Rerouting cargo through the West Coast may avoid Panama Canal restrictions and surcharges, but higher inland transport costs could offset some or all of the ocean freight advantage.

Metro connects Asia with a growing US network

The lowest ocean rate does not always deliver the lowest overall cost. With transpacific capacity tightening, Panama Canal restrictions adding complexity and US inland transport costs rising, shippers need to consider the entire journey across ocean, port, rail and road.

Metro's established Asian network and growing US footprint give shippers the flexibility to compare East Coast, Gulf Coast and West Coast options based on total landed cost, capacity, transit time and final destination. From securing ocean space and selecting the right gateway to coordinating inland transport and final delivery, Metro optimises the supply chain as a whole.

To learn more, EMAIL Managing Director Andrew Smith today.

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Climate is becoming one of the biggest supply chain risks

Aug 5, 2026 | , , , , , , , , ,

For years, weather disruption was largely viewed as an operational inconvenience. A storm might delay a vessel, flooding could close a road for a day or two, or high winds might temporarily suspend port operations. That is no longer the case.

Across the world's major trade routes, climate-related disruption is becoming more frequent, affecting more regions at the same time and lasting significantly longer. Drought, heatwaves, wildfires and tropical storms are now influencing shipping capacity, inland transport, manufacturing and inventory planning simultaneously.

Recent events across Europe, Asia and the Americas demonstrate that weather is no longer simply an environmental issue. It’s becoming a fundamental supply chain risk that needs to be anticipated and planned for. 

Panama Canal faces renewed pressure

One of the clearest examples is the Panama Canal, where falling water levels in Gatun Lake have prompted the Panama Canal Authority to progressively reduce maximum vessel draft during the summer as it conserves freshwater ahead of an anticipated Super El Niño. While current restrictions remain less severe than those experienced during the 2023 drought, they are already increasing costs for shippers. 

Several major ocean carriers have introduced Panama Canal surcharges ranging from $100 to $320 per TEU on Asia-US East Coast and Gulf Coast services, reflecting the reduced cargo each vessel can carry under tighter draft restrictions. Although the canal continues to operate normally, any future reduction in daily transit slots would have a much greater impact on schedule reliability than the current draft limits alone. 

Europe's rivers are feeling the strain

The effects of prolonged hot, dry weather are also being felt across Europe's inland transport network.

Water levels on the Rhine have fallen to critically low levels, severely restricting barge operations between Rotterdam, Antwerp and inland Germany. Operators have been introducing low-water surcharges for several weeks, while some services have become commercially or operationally unviable. 

Efforts to transfer freight onto rail have proved equally challenging, with alternative corridors already operating close to capacity because of ongoing infrastructure works.

For manufacturers relying on Europe's inland waterways, disruption is no longer confined to river transport, it increasingly affects rail capacity, road availability and overall distribution costs.

Wildfires are disrupting European road freight

Across southern Europe, another climate-related challenge is emerging, as large wildfires in France and Spain disrupt some of Europe's busiest freight corridors through road closures, diversions, reduced visibility and extreme temperatures. Longer journey times are increasing fuel consumption, delaying deliveries and placing additional pressure on temperature-controlled supply chains. 

The impact extends well beyond the affected regions. France remains the principal land bridge between the UK and the Iberian Peninsula, and with around 75% of UK trade with continental Europe transported by road, closures and diversions across France can have far-reaching consequences for supply chains across Europe.

For businesses importing fresh produce or operating just-in-time supply chains, even relatively localised events can have continent-wide consequences.

Typhoon season continues to test Asian supply chains

Meanwhile, North Asia is experiencing another challenging tropical storm season.

Following the disruption caused by Typhoon Bavi, Typhoon Dolphin is threatening further delays across one of the world's busiest manufacturing and shipping regions. Major ports including Shanghai, Ningbo and Qingdao are already managing congestion, with delays of up to 8 days and while the typhoon is being downgraded, another severe weather event risks extending vessel queues and delaying cargo movements before previous backlogs have fully cleared. 

The timing is particularly significant as peak season demand continues, increasing pressure on both container shipping and bulk commodity movements throughout the region.

Weather disruption is becoming interconnected

Individually, each of these events presents a local operational challenge, but together, they highlight a much broader trend.

Lower water levels restrict major waterways. Heat and drought increase wildfire risk. Tropical storms disrupt manufacturing and port operations. Each event creates knock-on effects that spread rapidly through global supply chains, affecting transport capacity, transit times and logistics costs far beyond the immediate area.

With forecasters warning that a strengthening Super El Niño could increase the frequency and severity of weather extremes over the coming months, businesses should expect climate-related disruption to remain a significant operational risk. 

Building resilience into the supply chain

Extreme weather can no longer be treated as an occasional disruption that businesses simply react to.

Organisations that build resilience into their supply chains, through flexible transport options, contingency planning, alternative routings and greater supply chain visibility, will be far better placed to manage future disruption than those relying on historical weather patterns.

As climate events become more frequent and interconnected, resilience is becoming every bit as important as cost and transit time.

Whether you're moving freight through Europe, North America or Asia, Metro can deliver visibility throughout your supply chain and help you prepare for disruption before it happens. From alternative routings and multimodal solutions to warehousing, customs and contingency planning, we'll help build a more resilient supply chain that keeps your cargo moving when conditions change.

EMAIL Managing Director, Andrew Smith to start a conversation. 

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Typhoon Bavi exposes fragility in global supply chains

Jul 22, 2026 | , , , , ,

Typhoon Bavi, an exceptionally powerful and large tropical cyclone that tore through the Western Pacific last week may have passed, but its impact on global supply chains will linger for at least another week. 

After forcing the temporary closure of several of China's most important container gateways, the storm has left shipping lines, ports and shippers facing weeks of disruption as vessel schedules recover and freight networks work through mounting backlogs.

The Category 5-equivalent super typhoon swept across eastern China in mid-July, bringing winds exceeding 140 km/h and affecting an area almost 1,000 kilometres wide. As the storm approached, ports suspended operations, vessels were ordered to leave exposed berths and inland feeder terminals closed as a precaution. Although terminals have now reopened, the disruption created during just a few days of closures is continuing to ripple through global logistics networks.

For importers and exporters, the lesson is becoming increasingly clear. Modern supply chains are no longer disrupted only by geopolitical events or capacity shortages. Severe weather is now capable of creating global consequences that last long after the skies have cleared.

China's busiest ports face weeks of recovery

Shanghai and Ningbo, the world's first and third busiest container ports respectively, bore the brunt of the disruption. Together they handle tens of millions of containers every year and sit at the heart of manufacturing supply chains serving Europe, North America and the rest of Asia.

As Typhoon Bavi approached, container terminals suspended operations, vessels left deep-water berths and truck movements were halted. Along the Yangtze River, feeder ports linking inland manufacturing centres with Shanghai also closed, temporarily severing one of China's most important export corridors.

Operations resumed once the storm had passed, but reopening terminals is only the first stage of recovery. Every delayed vessel must still be berthed, unloaded and reloaded before shipping schedules can begin returning to normal.

Industry analysts estimate that almost two million TEU of container capacity was delayed by the disruption, with North Asia accounting for more than half of all global port congestion during the immediate aftermath. Current forecasts suggest ports may require at least two weeks to work through the accumulated backlog.

Vessel queues continue to grow

The operational impact became visible almost immediately after ports reopened.

The queue of vessels waiting outside Shanghai more than doubled within a week, rising from fewer than 60 ships before the closures to well over 120. Ningbo experienced a similar pattern, with waiting vessels increasing by almost 70%, while congestion also spread north to Qingdao following precautionary closures there.

Waiting times have lengthened accordingly. Some vessels are now experiencing delays of several days before securing a berth, while carriers operating certain services face considerably longer waits as terminals prioritise arrivals and reorganise schedules.

The disruption extends well beyond the ports themselves. Warehousing, customs processing, container yards and trucking operations all require time to absorb the surge in cargo released once terminals reopen. As containers accumulate, equipment availability tightens, truck demand rises and inland transport networks come under increasing pressure.

Delays are spreading across global shipping networks

The consequences are now extending far beyond eastern China. Shipping lines have omitted calls at Shanghai and Ningbo on several international services, instead diverting cargo through alternative hubs including Hong Kong, Singapore and Busan before arranging onward transhipment. Other vessels have been forced to skip scheduled ports entirely or adjust voyage rotations to recover lost time.

These changes inevitably create further disruption downstream. Delayed vessels arrive at subsequent ports outside their planned windows, leading to berth congestion elsewhere, missed feeder connections and revised cut-off times for exporters. Cargo originally booked on one sailing may be rolled to another, while importers face growing uncertainty over arrival dates.

The cumulative effect is that disruption continues travelling through global shipping networks long after the original weather event has ended.

Extreme weather is becoming a strategic supply chain risk

Typhoon Bavi is the latest reminder that climate-related disruption is becoming an increasingly significant operational challenge for global trade.

Maritime transport carries more than 80% of world merchandise trade, making the resilience of major ports critical to international supply chains. Yet severe weather events are becoming both more frequent and more disruptive, with tropical cyclones already responsible for months of cumulative port disruption each year.

For shippers, this changes the nature of supply chain risk. Weather-related disruption can no longer be viewed simply as a short-term operational inconvenience. Increasingly, it affects inventory planning, manufacturing schedules, customer service and working capital across international supply chains.

Building resilience now requires more than securing freight capacity. Businesses also need timely visibility into where products are, how disruption is developing and which shipments require immediate intervention.

Visibility is becoming a competitive advantage

When disruption occurs, the biggest challenge is often not the delay itself but understanding exactly how individual shipments are affected.

Metro's MVT platform provides end-to-end shipment visibility down to SKU level, allowing customers to monitor cargo movements, identify disruption early and make informed decisions before delays impact production, inventory or customer commitments. Combined with Metro's global freight expertise, MVT transforms complex supply chain data into actionable intelligence, helping businesses maintain control when international logistics become increasingly unpredictable. EMAIL Managing Director Andrew Smith today.

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