Hormuz satellite

Middle East disruption continues as Metro scales contingency solutions

Apr 29, 2026 | , , , , , , , , ,

The extension of the US–Iran ceasefire has done little to stabilise operating conditions in the region, with last week’s seizure of two MSC-managed container vessels by Iran’s Islamic Revolutionary Guard Corps in the Strait of Hormuz. 

The incident highlight the ongoing risk to commercial shipping and reinforces the reality that access through Hormuz remains severely constrained, with container flows through the Strait largely suspended.

Land-bridge solutions under pressure as demand surges

As traditional shipping routes have been disrupted, supply chains have shifted rapidly towards alternative solutions, particularly land-bridge routes across the Gulf.

However, these corridors are now under significant strain. Demand for trucking capacity has surged well beyond available supply, with rates on key lanes such as Jeddah to the UAE rising four to five times above pre-conflict levels.

Jeddah has become the primary gateway following security concerns at Khor Fakkan and Salalah, concentrating volumes into a single entry point and creating further bottlenecks. In some cases, demand for road capacity has reached multiples of available supply, driving sharp price escalation and limiting flexibility for shippers.

Operational disruption now outweighs capacity availability

One of the defining characteristics of the current market is that disruption is being driven less by a lack of physical assets and more by how networks are operating.

Ocean carriers are navigating around both the Red Sea and Hormuz, adding 15–20% to voyage distances, increasing fuel consumption and reducing effective capacity. At the same time, global port congestion has exceeded 3 million TEU, further impacting reliability. 

Airfreight networks are also adjusting to restricted airspace and reduced Gulf capacity, while road freight is absorbing increased volumes through regional corridors, adding complexity and extending transit times.

The result is a market where capacity exists, but is harder to access, less predictable and more expensive to deploy.

Pricing volatility accelerates as fuel and disruption outpace contracts

Freight pricing is struggling to keep pace with the speed of change.

Across ocean freight, emergency bunker surcharges are now widely applied, while traditional fuel adjustment mechanisms lag behind real-time cost increases. In airfreight, fuel surcharges are being revised more frequently as jet fuel prices continue to rise. In road freight, fuels costs typically represent over 30% of operator costs, placing short-term pressure on carriers and increasing the likelihood of further cost pass-through. 

The situation is further complicated by simultaneous pressure across multiple global chokepoints.

Disruption linked to the Strait of Hormuz is occurring alongside continued Red Sea instability and wider geopolitical friction across key corridors. This has created a structurally higher-risk operating environment, where any escalation can quickly remove capacity, extend transit times and increase costs across all modes. 

Scaling solutions to maintain cargo flow

In response, Metro has significantly increased its operational focus on the region, with time dedicated to resolving Middle East-linked problems rising by more than 1000%.

The focus is on execution: ensuring cargo continues to move and that shipments already in transit are delivered using the most effective available solution.

Metro is actively supporting customers through:

  • Dynamic re-routing of in-transit cargo, avoiding disruption hotspots
  • Alternative gateway strategies, identifying viable entry points outside high-risk zones
  • Airfreight deployment, where speed and reliability are critical
  • Land-bridge and multimodal solutions, maintaining flow where ocean routes are constrained

This flexible, hands-on approach is essential in a market where conditions are changing rapidly and pre-planned routes are no longer sufficient.

If you have cargo moving to, from or through the Middle East, or shipments currently held en route, Metro can help you identify and implement the most effective resolutions.

EMAIL Managing Director, Andrew Smith, today to secure capacity, protect transit times and keep your supply chain moving in a rapidly changing environment.

China flag and ship

China’s maritime code overhaul reshapes legal risk for UK shippers

Apr 28, 2026 | , , , , , , , , , , , , , , , ,

A significant shift in the legal framework governing global shipping comes into force on 1 May 2026, as China implements revisions to its Maritime Code. 

While the changes are designed to align with international standards, their practical effect is to strengthen Chinese jurisdiction over cargo moving through its ports.

For UK shippers, this represents a meaningful change in how contracts of carriage are interpreted and enforced. Agreements that have historically relied on English law and London arbitration may now face limitations when disputes arise in connection with Chinese ports.

At the centre of the reform is a clear principle: where cargo is loaded or discharged in China, Chinese law is likely to apply. This introduces a new layer of complexity for businesses trading with or through the region, particularly where contractual terms have not been fully aligned with the updated legal framework.

Jurisdictional shift changes how disputes may be handled

The revised code increases the likelihood that Chinese courts or arbitration bodies will take the lead in resolving cargo-related disputes. In practical terms, this means that even where contracts specify alternative governing law, those provisions may carry less weight if the shipment is linked to a Chinese port.

This is particularly relevant for bills of lading, where multiple contractual layers can exist. 

The interaction between bespoke agreements and standard shipping documents is now less predictable, raising the risk that disputes will be assessed under Chinese law rather than previously agreed terms.

For UK businesses, this alters the balance of legal certainty that has long underpinned international shipping contracts.

The revisions also introduce more defined rules around cargo claims, including how and when shippers can pursue carriers for loss or damage, particularly where bills of lading have been transferred.

While this provides clearer guidance, it also requires a deeper understanding of how claims will be handled under Chinese law. Processes, timelines and evidential requirements may differ from those typically expected under English legal frameworks, affecting how disputes are prepared and resolved.

The updated code also reflects broader changes across shipping, with new provisions addressing the use of digital transport records, placing greater emphasis on compliance and reporting standards, particularly for foreign vessels. At the same time, changes to liability rules require closer scrutiny of insurance coverage and documentation.

A potentially more complex operating environment for UK trade with China

Taken together, the reforms reinforce China’s position as a central authority in the legal framework governing its trade flows. While English law and arbitration remain relevant, their practical influence may be reduced in specific cargo-related scenarios.

The impact will vary depending on contract structure, shipment type and dispute context, but the direction is clear: greater local control and increased legal complexity for international shippers.

With the changes now imminent, shippers should:

  • Review contracts covering shipments to and from China, particularly governing law and jurisdiction clauses
  • Reassess risk allocation within shipping agreements and supporting documentation
  • Confirm insurance coverage aligns with updated liability requirements

Early action will help mitigate exposure and reduce the risk of disputes being handled under unfamiliar or less favourable terms.

Metro works with customers to review contracts, align shipping strategies and ensure compliance with evolving international frameworks. If your business trades with China,  EMAIL our Managing Director, Andrew Smith, today to protect your position and keep your supply chain moving with confidence.

container ship and naval escort

Supply chain disruption continues despite US/Iran ceasefire

Apr 15, 2026 | , , , , , , , , , , , , , , , ,

Global supply chains are operating in a more stable position than at the peak of the Iran war, but conditions remain far from normal. 

President Trump’s announcement of a ceasefire, tied to the opening of the Strait of Hormuz, has reduced immediate geopolitical tension. However, logistics networks are still dealing with the after-effects of six weeks of disruption across one of the world’s most critical trade corridors.

Shipping activity through the Strait has resumed in limited form, but not at levels that would support a full return to pre-conflict operations. Carriers, insurers and cargo owners continue to treat the region as high risk, and that caution is shaping how goods are moved globally.

A clear indicator is the sustained level of Gulf container diversions to alternative gateways due to risk or congestion. Weekly diversions have risen from under 2,000 to consistently above 9,000 since early March. The UAE still receives 42% of diverted cargo, while Saudi Arabia’s share has climbed from 4% to 24% in five weeks. The 6 April attack on Khawr Fakkan has also removed a key alternative hub, adding further pressure to the network.

Congestion and cost pressures extend beyond the Gulf

The impact of these diversions is now being felt well beyond the Middle East. As cargo is redirected through alternative routes, pressure is building at ports not designed to handle sustained increases in transhipment volumes.

Navi Mumbai transhipment volumes have surged more than 1,300%, while import dwell times peaked at 23 days and remain elevated at around 20 days. Transhipment dwell has also increased, reaching 11 days and continuing to rise.

These developments underline a broader point: while flows have not stopped, the network has become less efficient. Transit times are longer, routing is less direct, and the risk of delay has increased at multiple points along the supply chain.

Energy disruption remains a central factor. The Strait of Hormuz has been functionally constrained for several weeks, removing an estimated 7–10% of global oil supply once partial workarounds are considered. This is feeding directly into transport costs across ocean, air and inland networks, while also increasing volatility in fuel pricing.

Global economies face different but connected pressures

The IMF have issued their updated global economic outlooks, with global GDP expected to slow to 3.1% in 2026 and 3.2% in 2027, while UK growth for 2026 has slowed from 1.3% to 0.8%, reflecting reliance on imported energy and the wider inflationary effects of sustained disruption. 

As energy-driven inflation persists and interest rate cuts are delayed, businesses are seeing pressure on margins, reduced order volumes and tighter working capital, while influences procurement and inventory strategies.

In the United States, supply chains are tightening rather than slowing. The Logistics Manager’s Index rose to 65.7 in March, its highest level since May 2022, with transportation, warehousing and inventory costs all increasing. Diesel prices have risen by almost 50% since late February, pushing trucking fuel surcharges to their highest levels since 2022.

A key difference compared to previous disruptions is the lack of buffer in the system. Inventories are leaner and fleet capacity has already been reduced, leaving less room to absorb further shocks. This increases the risk of stock-outs or service disruption if conditions deteriorate.

Business response: cautious planning and greater resilience

Across sectors, businesses are taking a measured but cautious approach. The ceasefire has improved sentiment, but expectations remain grounded. One retail CEO described it as a positive step that should gradually improve logistics planning and route reliability, while warning that supply chains would take time to rebalance. Another business leader noted that while freight costs had already increased, the business had anticipated this and planned accordingly, although any sustained rise in oil prices would create further pressure.

There are also early signs of upstream impact. In manufacturing supply chains reliant on imported energy, lead times have extended by up to six weeks in some cases. Textile production is reported to be down by around 15–20%, indicating that disruption is beginning to affect output at source. These effects typically take time to filter through to finished goods, but they highlight the potential for delayed disruption later in the supply chain.

In response, businesses are shifting from efficiency towards resilience, with greater emphasis on flexibility in routing, supplier selection and inventory management.

Short-term outlook: stabilisation without normalisation

In the near term, the most likely scenario is continued stabilisation without a full return to normal conditions. Vessel backlogs have eased and airspace restrictions eased, with some capacity redeployed, but diversion levels remain high and alternative hubs are under pressure. The loss of key secondary ports and ongoing uncertainty around the Strait mean carriers are unlikely to revert quickly to previous routing patterns.

For supply chains, this translates into a more complex operating environment. Costs remain elevated, transit times are less predictable, and planning cycles need to account for ongoing disruption rather than a rapid recovery.

In an environment where stability cannot be assumed, the ability to adapt quickly is critical and the right logistics partner can make the difference between maintaining flow and losing control.

With critical market insights, flexible routing options and proactive supply chain management, Metro helps customers overcome the most challenging conditions. 

EMAIL our Managing Director Andy Smith.

Gulf of Oman 1440x1080 1

Container and RoRo flows disrupted as Gulf remains closed

Mar 31, 2026 | , , , , , , , , , , , , , , , ,

The effective closure of key Gulf shipping routes has halted vessel access to major regional hubs, leaving ships anchored or diverted and forcing carriers to discharge cargo at alternative ports across Oman and the UAE.

These ports are now acting as critical stopgap gateways, but they lack the scale, infrastructure and connectivity of established hubs such as Jebel Ali. As a result, cargo flows are becoming fragmented, with increased reliance on transhipment and secondary routing options.

This disruption is also impacting automotive supply chains. As of 30 March, 15 deep-sea pure car and truck carriers (PCTCs) remain locked in the Persian Gulf, including vessels linked to major Asian operators. Prior to the escalation, more than two dozen PCTCs were calling Gulf ports weekly, underlining the scale of capacity now removed from the market.

Although the number of vessels directly affected is relatively limited, the impact is amplified by the volume of vehicles already loaded and destined for the region. With transit through the Strait of Hormuz effectively closed, operators are holding cargo on board, returning vessels to origin in Asia, or discharging at alternative locations.

East Africa is emerging as a temporary relief valve, with ports such as Lamu receiving diverted RoRo volumes. Thousands of CEUs are now being held in storage, awaiting clarity on onward routing, further extending lead times and tying up equipment.

At the same time, longer-term routing options remain constrained. Potential alternatives via Red Sea gateways such as Jeddah or Aqaba face their own limitations, particularly as ongoing security concerns continue to divert Asia–Europe RoRo traffic around the Cape of Good Hope.

Pressure is already building across container flows. Congestion is rising at substitute ports, while markets such as Western India are beginning to experience delays as they absorb displaced volumes. Although global trade lanes outside the region remain broadly stable, rerouting activity is increasing and reshaping network dynamics.

A drone strike on the Salalah container terminal on 28 March further exposed the fragility of these alternative networks. The incident forced a temporary closure of one of the region’s key transhipment hubs, disrupting operations at a critical access point for Gulf-bound cargo. While the port reopened three days later, operational constraints are expected to continue, limiting throughput and extending delays.

Equipment imbalances, cargo restrictions and congestion

Beyond routing disruption, structural pressure is building within the ocean freight system. Equipment availability is becoming increasingly uneven as flows are disrupted, with empty container shortages emerging in certain markets.

At the same time, cargo handling restrictions are tightening. Metro is seeing direct evidence across Oman and other regional ports that hazardous containers are no longer being accepted, regardless of classification. Units already on terminal are being required to move off port as a priority.

However, with no viable repatriation hubs available within the region, options are extremely limited. In many cases, hazardous containers must be redirected back to origin or moved to upstream ports outside the affected area, adding cost, delay and operational complexity.

Port congestion remains a persistent constraint. Around 3 million TEU of global capacity is currently tied up in port delays, highlighting the gap between theoretical vessel capacity and the reality of moving cargo through constrained infrastructure.

Even where vessel space exists, operational limitations at ports are restricting throughput. Alternative ports are not configured to handle sustained high-volume flows, while feeder networks and regional services are being adjusted to accommodate changing conditions.

The disruption is also creating wider scheduling challenges, with sailings being rerouted and transit times becoming less predictable as carriers respond to evolving constraints.

Pressure building, with risk of spillover across modes

For now, the global impact remains more contained than previous crises, with major east–west trade lanes continuing to operate. However, underlying pressure is increasing, and the longer disruption persists, the greater the risk of wider spillover across both container and RoRo networks.

Rerouting is becoming more widespread, congestion is building at key alternative gateways and equipment imbalances are beginning to take hold. At the same time, rising oil prices are feeding into bunker costs, adding a further layer of cost pressure across all trades.

The key variable remains duration. If disruption continues, today’s regional challenges are likely to extend into broader network instability, affecting schedule reliability, transit times and overall supply chain predictability across multiple cargo types.

For shippers and other supply chain participants, the focus is shifting towards maintaining flexibility, securing capacity early and planning for multiple routing scenarios as conditions evolve.

Maintain flow across container and automotive supply chains

Metro is helping customers minimise disruption across containerised and automotive supply chains with practical, experience-led solutions.

With secure vessel capacity, alternative discharge strategies and flexible routing options, Metro keeps cargo moving as networks shift, including complex RoRo diversions and delayed vehicle flows.

Metro’s on-the-ground insight into operational constraints, including hazardous cargo restrictions and port-specific limitations, enables early intervention and reduces the risk of costly delays, diversions or cargo being stranded.

Through MVT, customers gain real-time visibility of shipments, congestion and routing options, enabling faster, data-led decisions across both container and automotive movements.

To review your current ocean or automotive supply chain exposure, hazardous cargo options or contingency plans, EMAIL Andrew Smith, Managing Director.

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