Nhava Sheva

India’s changing shipping networks add pressure to US supply chains

Oct 14, 2026 | , , , ,

Congestion across South Asia's container shipping network is increasing costs and disrupting connections for US-bound cargo, while surging China–India demand and changing Middle East trade flows accelerate India's emergence as a regional transhipment hub.

India's expanding manufacturing economy and the disruption of established Middle East shipping routes are reshaping container movements across the Indian Ocean.

Freight rates from China to India have more than doubled since July, while congestion at Colombo, Nhava Sheva and Mundra is adding uncertainty to regional connections.

For US importers sourcing from India, these developments potentially create upstream cost pressures and increase the importance of reliable feeder services, transhipment connections and inland logistics.

At the same time, India's ports are handling growing volumes of cargo previously routed through Middle Eastern hubs, creating opportunities to strengthen the country's position in international shipping networks.

China–India demand drives freight rates higher

Strong demand for Chinese components, machinery and consumer goods is placing sustained pressure on container capacity into India.

Spot rates on China–India routes have more than doubled since July, with Shanghai–Nhava Sheva rates increasing approximately 20% since late August and Shanghai–Chennai rising around 25%.

The increases reflect growing import demand alongside the redeployment of vessels to higher-yielding east–west trades.

China remains India's largest trading partner, with Indian imports increasing 16% in the 2025–26 financial year. Growth accelerated further during the first five months of the current financial year, with import values rising approximately 27%.

Much of this demand comes from Indian manufacturers importing intermediate components, electronics and capital equipment to support domestic production.

Seasonal consumer demand and advance purchasing ahead of regulatory changes have added further pressure.

The cost increases extend across the wider intra-Asia market. Drewry's Intra-Asia Container Index remained 209% above year-earlier levels in early October, despite easing 1% during China's Golden Week holiday. Six consecutive weekly increases before the holiday underline the sustained cost pressure facing regional supply chains.

Carriers are responding with additional intra-Asia services, but expanding coverage has yet to offset the combined impact of demand and constrained vessel space.

Colombo congestion threatens India–US connections

Sri Lanka's Colombo port has become an increasingly important transhipment hub as shipping lines divert cargo away from traditional Middle Eastern gateways.

The additional traffic is placing considerable pressure on terminal operations. Colombo's transhipment volumes increased 7.8% year on year in August and now account for more than 82% of total port throughput.

Terminal yard utilisation has exceeded 130%, with vessel delays of two to three days reported and container turnaround times extending beyond six days at some facilities.

For Indian exporters, particularly those shipping through southern gateways such as Chennai, Tuticorin and Cochin, the consequences extend beyond port delays.

Securing space on a mainline vessel does not guarantee that cargo will make its intended sailing. Feeder schedules, container availability, transhipment dwell times and mainline port calls must all align. When vessels omit Colombo to recover schedules, containers can miss connections even when space remains available on the onward service.

For US-bound cargo, these missed connections can extend transit times, increase storage and handling costs, and disrupt delivery schedules.

Pressure is also evident at other regional transhipment hubs. While freight rates from China to several Asian destinations eased during Golden Week, rates to Singapore and Tanjung Pelepas increased 2%, reflecting uneven conditions across regional shipping corridors.

Congestion at India's Nhava Sheva and Mundra ports adds another layer of uncertainty, making coordination across the complete transport chain increasingly important.

India emerges as an alternative regional hub

While congestion is creating immediate operational challenges, changing shipping patterns are also opening longer-term opportunities for Indian ports.

Middle East disruption has encouraged carriers to use India's west coast terminals to relay cargo previously handled through established Gulf hubs.

The shift now extends beyond Asia–Middle East shipments, with Indian ports increasingly handling Gulf-bound cargo originating in the US, Europe and Africa.

Nhava Sheva has become central to this development. The port handled more than 703,000 TEU of transhipment cargo between March and August, compared with approximately 513,000 TEU during the entire previous financial year.

At Mundra, transhipment volumes increased approximately 18% year on year between April and July.

These increases demonstrate how quickly carriers have adapted their networks, but the additional volumes are also contributing to terminal congestion and inland transport delays.

Both ports are developing additional storage and container-handling infrastructure to accommodate growing demand.

Regional networks are also being reconfigured. Four Asian carriers are removing Singapore calls from their joint China–India service, illustrating how shipping lines are reassessing established port rotations and connections.

Other gateways, including India's Vizhinjam and Sri Lanka's Hambantota, are attracting interest as carriers seek alternative transhipment options.

India's ability to retain this additional business will depend on whether its ports can deliver competitive costs, reliable feeder connections and consistent operational performance once Middle Eastern shipping patterns stabilise.

Connecting India and the USA with greater control

For US importers, the interaction between rising upstream costs, port congestion and changing shipping networks makes supply-chain planning increasingly complex.

China–India transport costs can affect Indian manufacturers before finished goods begin their export journey, while missed transhipment connections introduce further delays and expense.

A shipment's reliability now depends as much on feeder connections, terminal conditions and inland coordination as it does on securing mainline vessel space.

As India becomes an increasingly important sourcing and manufacturing partner for US businesses, effective coordination between origin and destination markets is essential.

Metro India and Metro USA provide connected expertise at both ends of this developing trade corridor, combining local market intelligence, carrier relationships and international freight capabilities to identify practical routing and transport options.

From managing origin arrangements and assessing alternative gateways to coordinating US imports and inland delivery, Metro helps customers maintain visibility and control across the complete supply chain.

Contact Metro UK, India or USA to review your shipping requirements, identify potential cost and transit-time risks, and build more reliable connections between India and the United States.

Lloyds Market Matters

Metro CEO joins Lloyds Bank to examine the changing global trade outlook

Sep 30, 2026 | , , , ,

Metro CEO Grant Liddell joined Lloyds Bank’s Markets Matter briefing to examine how geopolitical disruption, changing sourcing strategies and rising transport costs are reshaping global supply chains and why underlying trade remains surprisingly resilient.

The Lloyds Bank’s Markets Matter series brings together its economists and market specialists with business leaders to give corporate and commercial clients practical insight into the economic, financial and operational issues affecting their businesses.

For its latest briefing, Navigating Markets Beyond Monetary Policy, Grant joined Lloyds Bank specialists to bring a logistics perspective to a discussion spanning interest rates, inflation, energy prices, government finances and the wider risks facing UK businesses.

With freight costs among the channels through which geopolitical disruption and higher energy prices can feed into inflation, the discussion turned to what Metro is seeing across international supply chains and how businesses are responding.

Global trade is proving resilient

Global logistics provides an unusually immediate barometer of international trade, and Grant highlighted the contrast between the economic headlines and what is actually moving through supply chains.

Global container volumes reached a record level during July, while containerised trade continued to grow year on year. Intra-Asia and Asian export trades have been particularly strong, despite tariffs, geopolitical tensions and changing sourcing patterns. 

The picture is not uniform. European demand remains relatively subdued compared with the US, Far East and some emerging markets, while India is experiencing particularly strong growth.

That demand has consequences. Freight operates as a highly responsive market, with rates capable of rising or falling rapidly as available capacity moves out of balance with cargo demand. Grant highlighted dramatic increases on some Indian ocean and airfreight trades this year, while transpacific ocean rates have returned towards levels last experienced during the pandemic. 

Those increases do not stop with the freight invoice. Components and raw materials frequently cross borders several times before a finished product reaches its customer. Higher transport costs can therefore enter the production process at multiple stages, creating an indirect inflationary effect as well as increasing the final cost of distribution. 

From just in time to ‘just given time’

One of Grant’s most interesting observations concerned the way businesses are responding to disruption.

The highly optimised just-in-time model used across many manufacturing and industrial sectors has become much harder to maintain as Red Sea diversions, geopolitical conflict, closed airspace and port congestion extend and destabilise transit times.

Grant described the reality as increasingly becoming “just given time” with businesses adapting their inventory and production strategies to supply chains where predictable lead times can no longer always be assumed. 

That change is also accelerating interest in alternative sourcing locations. India is attracting manufacturing in sectors including technology and electronics, while Metro customers are increasingly considering production in the UK and Europe. North Africa is becoming more prominent and Turkey has attracted manufacturing across garments, automotive and engineering.

Some businesses had already begun reducing their dependence on China before the pandemic. Subsequent disruption has pushed resilience and diversification much higher up the agenda.

Yet this does not necessarily mean less international trade. Goods may travel shorter distances or move by truck rather than deep-sea container or airfreight, while rapidly expanding intra-Asian trade demonstrates how changing manufacturing footprints can create new freight flows rather than eliminate them. 

Reliability becomes the critical supply-chain risk

Asked what businesses should be considering as they plan for 2027, Grant put reliability high on the list.

Strong demand is combining with congested ports, delayed vessels, weather disruption and geopolitical uncertainty. The resulting challenge is not simply securing a competitive freight rate, but ensuring components reach production lines and finished products reach markets when required. 

That reinforces a theme running throughout the Lloyds discussion.

Higher freight and energy costs matter, but their wider economic impact depends partly on how businesses respond: whether costs are absorbed, reflected in pricing, influence wage decisions or become embedded in future contracts.

For supply-chain managers, the equivalent challenge is building enough flexibility into sourcing, inventory and transport strategies to withstand disruption without creating excessive cost.

Suez could change the equation again

There are also reasons why the freight outlook could change during 2027.

Grant highlighted the increasing use of the Red Sea and Suez route by carriers serving Asia, with several lines already using the route regularly.

A wider return would release effective vessel capacity because ships would no longer require the additional 15+ days associated with Cape of Good Hope diversions. That could improve supply and place downward pressure on freight rates. 

But the outlook remains complicated by energy prices, aviation fuel costs and continuing geopolitical risk.

Near-shoring can provide another layer of protection, but changing a manufacturing footprint is neither quick nor straightforward. Establishing new suppliers and supply chains can take months or years.

The result, as Grant characterised it, is a mixed picture for 2027, and while significant risks remain businesses are actively changing how and where they source, manufacture and move products to manage them. 

Turning global risk into practical supply-chain decisions

Perhaps the clearest message from the discussion was that geopolitical and economic uncertainty has not stopped global trade. Instead, it is changing its routes, costs and priorities.

With businesses already planning for 2027, the discussion provides useful context for understanding how economic and geopolitical risks could affect costs, sourcing and supply-chain decisions in the months ahead.

Click HERE to catch up with the full Lloyds Banking Group Markets Matter recording.

Metro model truck 1440x1080 1

Road freight resilience starts before the truck arrives

Sep 16, 2026 | , , , , , , , , , , , , , , , , ,

UK haulage is entering a period in which access to the right vehicle, route and transport option could become increasingly important. For shippers, that makes planning and flexibility just as important as the rate agreed for an individual movement.

More than half of UK HGV drivers are aged between 50 and 65, while fewer than 2% are under 24. Replacing an ageing workforce brings recruitment, training, insurance and employment costs at the same time as operators manage wider pressure on vehicle operating expenses.

That does not mean the UK is heading inevitably towards a nationwide shortage of trucks. But it is going to make availability more variable by location, vehicle type and periods of peak demand.

For shippers, the response is to look beyond simply finding a truck when one is needed for UK or international movements and consider the strength, flexibility and resources behind their transport solution.

More ways to keep freight moving

Access to multiple transport options provides an important buffer when individual parts of the market tighten.

Metro combines its own commercial fleet with a wider UK and European road freight network, giving customers access to dedicated domestic transport, groupage, less-than-truckload (LTL) and full-truckload (FTL) solutions.

Dedicated vehicles can operate on fixed routes, with GPS tracking providing visibility throughout the journey. Different equipment, security and service options also allow the transport solution to be matched more closely to the cargo, delivery environment and required transit time.

Metro’s UK road freight teams are strategically located close to major manufacturing and transport hubs, supporting both domestic movements and international connections.

That capability extends across Europe, with established groupage services connecting customers with France and Germany, including the industrially important Ruhr region, with further services into the Netherlands, Poland, Iberia and Turkey. Frequent departures and established partner networks provide further options for both inbound and outbound freight.

This breadth matters when availability changes. Rather than depending on one mode of road transport or a narrow pool of vehicles, shippers can combine dedicated, groupage, LTL and FTL services according to shipment size, urgency and destination.

Plan capacity, not individual movements

The other side of road freight resilience is using available capacity efficiently.

Booking transport at the final stage of a shipment can leave logistics teams with fewer choices if the required vehicle or departure is already constrained. Earlier visibility of inbound and outbound requirements creates more opportunity to plan collections, consolidate freight, secure equipment and select alternative services.

It can also help businesses avoid treating domestic or European haulage as an isolated final step.

A container arriving at a UK port, an urgent movement into Germany or several smaller consignments moving into continental Europe all create different transport requirements. Connecting those movements with the wider supply chain makes it easier to choose the right solution before capacity becomes critical.

That could mean consolidating smaller shipments into groupage, moving time-sensitive cargo on a dedicated vehicle, using LTL where greater flexibility is available or securing FTL capacity earlier for larger movements.

The objective is not simply to source the lowest rate for today’s shipment. It is to create enough options to keep freight moving efficiently as demand, availability and operating costs change.

For UK and European shippers, the resources behind a road freight provider are therefore becoming increasingly important. Its own fleet, access to additional capacity, range of service options, network coverage and ability to adapt routes when circumstances change.

Metro combines its own commercial fleet with an extensive UK and European road freight network, giving customers the flexibility to move from dedicated vehicles to groupage, LTL and FTL solutions as requirements change. 

With strategically located teams, MVT supply chain management platform, GPS-tracked services and strong connections across key European markets, we can build road freight solutions around your cargo, keeping goods visible, capacity accessible and supply chains moving.

Survey EU

Businesses target European growth despite customs barriers

Sep 2, 2026 | , ,

UK businesses remain positive about their prospects in Europe, but customs complexity, compliance costs and uncertainty over future trading arrangements may limit the potential for faster growth.

That is the picture emerging from Metro’s latest customer survey, which asked businesses how they expect their EU trade to develop during 2026-27 and what would make cross-border trade easier.

The survey followed Metro’s recent review of the UK’s evolving international trade relationships, including ongoing discussions designed to improve elements of the UK-EU trading environment.

While negotiations between the UK and EU continue, the responses suggest businesses are not waiting for political agreements before pursuing growth. Instead, many are already looking at new products, markets and logistics strategies, while seeking practical ways to reduce the friction associated with European trade.

Almost three quarters expect EU trade to grow

The strongest signal from the survey is confidence.

More than 72% of respondents expect their EU trade to increase over the next 12 months, evenly divided between those anticipating significant growth and those expecting a more modest increase.

This is significant because the relationship has not become operationally simple. Companies continue to deal with customs declarations, VAT considerations, border processes and differing regulatory requirements, but these obstacles do not appear to have materially weakened their appetite to trade.

Respondents expecting growth are not primarily relying on established customers buying more.

Almost two-thirds identified new products or services as a growth driver, making this by far the most selected response. That distinction matters.

European growth appears increasingly linked to active business development rather than organic increases in existing trade. New products and markets can create more complex supply chains, placing greater emphasis on customs, VAT, transport and inventory planning.

Road remains dominant, but businesses are open to alternatives

Accompanied road freight remains the most widely used option, with 80% of respondents currently using it, but they are also using or considering a much broader mix of solutions.

Short-sea shipping already has over 60% penetration, while unaccompanied road freight is established among almost 50% of respondents. Rail and intermodal stand out because interest in considering these services (35%) is considerably higher than the current 18% usage.

Accompanied road freight may remain the default solution for many UK-EU movements, but businesses increasingly benefit from being able to switch between modes and accompanied or unaccompanied, depending on cost, capacity, urgency and border conditions.

Customs friction dominates customer concerns

When respondents were asked what would most improve their ability to trade efficiently with the EU, one issue stood well above the others, with 82% selecting fewer customs formalities and border delays.

Cost and regulatory certainty were the next largest concern, with 55% selecting lower transport and compliance costs, while the same proportion wanted greater clarity over future UK-EU trade rules.

More than a third highlighted simpler VAT and fiscal-representation arrangements.

Together, these findings suggest businesses are less concerned about whether European opportunities exist than about the administrative and financial complexity involved in exploiting them.

That includes avoiding customs errors, preventing unnecessary delays, establishing the correct VAT arrangements and understanding how regulatory changes will affect future supply chains.

More than a quarter of respondents identified simpler food and drink certification requirements as one of the changes that would improve EU trade.

Negotiations over sanitary and phytosanitary standards are intended to reduce some of the inspections, certificates and border requirements affecting agri-food movements.

Compliance support is the service customers value most

Perhaps the most decisive result came when businesses were asked which logistics services would make it easier to grow or operate within the EU. 80% selected customs clearance and compliance support.

Alternative road, short-sea or intermodal transport solutions ranked second at 40%, followed by fiscal representation at 30%.

If customs formalities are the principal obstacle, businesses naturally place the greatest value on expertise capable of removing that obstacle.

For a company entering a new EU market, getting classification, declarations, origin, documentation, VAT and fiscal obligations right from the outset can be just as important as selecting the right transport service.

What the findings mean for successful European trading

Taken together, the survey points towards several practical priorities for businesses targeting EU growth.

Build customs into the commercial strategy. Consider classification, origin, documentation and importer responsibilities before entering a market, rather than when goods are ready to move.

Look at total landed cost. Freight is only one component; customs administration, VAT, compliance, inventory and border delays can all affect profitability.

Maintain modal flexibility. Accompanied road remains important, but unaccompanied, short-sea and intermodal alternatives can provide valuable options as cost, capacity and requirements change.

Plan expansion market by market. New products and new markets can introduce different customs, VAT, regulatory and logistics requirements that need to be understood from the outset.

Watch UK-EU negotiations, but do not wait for them. Future agreements may reduce friction, but businesses can already improve European trade through better customs management, routing and supply-chain planning.

Customs, compliance, cost and regulatory uncertainty remain prominent concerns. Businesses best positioned for growth will be those that treat logistics and customs as part of their European market strategy rather than simply an operational requirement.

Metro combines European freight solutions with customs expertise and supply-chain support, helping businesses assess routes, manage cross-border requirements and build flexible solutions as their European trade develops.

As UK-EU arrangements continue to evolve, that combination of compliance, flexibility and forward planning can help turn confidence in European markets into sustainable growth.

EMAIL Andrew Smith, Metro’s Managing Director.

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