Strengthening Global Network to Address Supply Chain Challenges

Strengthening Global Network to Address Supply Chain Challenges

Oct 30, 2024 | , , , , , , , ,

Metro’s strategic partner network is central to delivering market-leading logistics services, especially as global supply chains face ongoing challenges. With the appointment of Peter Orange as head of global network development, Metro is deepening its commitment to building robust partnerships worldwide, enhancing collaboration, and strengthening its network’s resilience to meet customer needs.

Highlighting the significance of Metro’s partner network, managing director Grant Liddell and chief commercial officer Andy Smith recently completed a ten-day trip across Asia. During the visit, they met with key partners, carriers, and customers to strengthen relationships and gain valuable insights into regional market dynamics.

This focus on building connections comes at a time when supply chains are under persistent pressure, making agile, strategic partnerships essential to delivering reliable service.

Peter Orange’s new role: Deepening global partnerships
With over three decades of experience spanning airlines and logistics firms across diverse regions—including Australia, Singapore, UAE, and the UK—Peter Orange brings a global perspective to his role as head of global network development. His mandate is clear: to enhance Metro’s engagement with existing partners and explore potential new alliances, particularly those that bring specialised expertise in verticals like automotive and high-tech.

Peter’s appointment reflects Metro’s commitment to fostering like-minded partnerships that prioritise value, service reliability, compliance, and transparent communication. As part of this role, Peter is reviewing existing partner relationships, assessing shared business strategies, and aligning efforts across transport modes—whether air, ocean, or combinations—to ensure Metro’s global partnerships are primed to adapt to dynamic market demands. He is also leading a continuous evaluation process with core partners, holding regular reviews to assess market opportunities and align on growth objectives.

Building on this foundation, Metro plans to expand Peter’s team with route development managers who will focus on key regions, including Asia Pacific and EMEA, alongside the current emphasis on North America. This team will work closely with Metro’s partners to drive sales, share market intelligence, and set clear growth targets, reinforcing Metro’s strategy of data-informed and relationship-driven expansion.

Insights from Metro’s Asia trip
In September, Grant Liddell and Andy Smith travelled to Singapore, Shanghai, and Hong Kong to meet with Metro’s Asian partners, customers, and major carriers. The trip provided valuable insights into the region’s logistics landscape, particularly with regard to the effects of eCommerce growth on airfreight demand and the impact of ocean capacity adjustments driven by regional geopolitical issues.

A notable takeaway from their discussions was the continued strength of eCommerce in driving airfreight demand, particularly on routes from Asia to Europe and North America. This trend is keeping rates elevated and creating heightened capacity needs. In ocean freight, major trade routes are seeing increased rates due to strong demand and capacity constraints, with factors like the Red Sea diversions further tightening supply. The expectation is that these pressures will persist into Q4, reinforcing the need for strong partnerships and agile strategies.

Metro’s commitment to building a resilient partner network ensures that customers benefit from agile, robust global supply chains, capable of adapting to shifts in demand and overcoming potential disruptions.

With Peter Orange leading this effort, alongside Metro’s strengthened ties in Asia, we’re dedicated to adding value and positioning our customers for success in today’s dynamic logistics landscape.

To explore how Metro’s partnerships can support your business needs, please EMAIL Peter Orange for more information.

Air cargo rates surge as Vietnam becomes key export hub

Air cargo rates surge as Vietnam becomes key export hub

Oct 16, 2024 | , , , , , , ,

The air cargo market is seeing a significant surge in rates, driven by strong demand and tight capacity, especially on routes from Asia to North America and Europe.

In October, spot rates reached their highest point this year, with rates from Vietnam to the US increasing by 65% and to Europe by nearly 60%. Vietnam has emerged as a hotspot for eCommerce exports, with capacity out of Ho Chi Minh to North America increasing by 360% year-on-year.

Asia-Pacific has been hit hardest by the capacity constraints, with rates rising over 60% year-on-year due to increased demand for holiday shipments and high-tech goods. Despite the added capacity, rates continue to climb, further exacerbated by geopolitical tensions and disruptions in sea freight. The overall airfreight market grew by 10% year-on-year in September, as supply chain challenges forced more businesses to turn to airfreight.

Meanwhile, new security protocols introduced by the US and Canada are increasing the complexity of logistics for air cargo. These regulations, aimed at mitigating risks, require more detailed information from carriers, particularly on routes from Europe to North America. As a result, additional delays and operational hurdles are possible as peak season nears.

In Europe, demand for imports from Asia is forecast to remain strong through the rest of 2024, adding further pressure on already tight capacity. Surcharges have already been announced for Q4, with rates from Asia-Pacific to the US rising sharply. Transatlantic routes have seen a mix of rate movements, with rates increasing on westbound routes.

In response to the capacity crunch, shippers are exploring sea-air options through the Middle East, which has seen strong demand throughout 2024. However, these alternative routes are still subject to rising rates as supply struggles to keep pace with demand.

As the peak season approaches, air cargo rates are expected to continue climbing, and shippers are advised to plan for increased costs and potential delays. With demand surging and capacity remaining constrained, the air cargo market remains volatile, especially on key trade lanes from Asia to North America and Europe.

If you are exploring alternative sourcing strategies or looking for air freight support in Vietnam or Asia, please EMAIL our Chief Commercial Officer, Andy Smith, to schedule a consultation.

With 40 years of experience across Asia and Southeast Asia, we provide expert local assistance and ensure your products move smoothly to their distribution and sales points.

Our in-country specialists add value to your supply chain, offering seamless solutions tailored to meet your unique needs and requirements.

Creative solutions ease Bangladesh export challenges

Creative solutions ease Bangladesh export challenges

Oct 15, 2024 | , , , , , , , ,

As Bangladesh’s apparel sector ramps up production following months of disruption, exporters are benefiting from creative logistics solutions to overcome rising freight rates and capacity shortages. 

Metro shipments from Bangladesh have been utilising an innovative mix of air freight, sea/air, and land/air routings, including through China and India to mitigate costs and delays. These approaches are proving crucial in reducing transport costs and often bypassing traditional Middle Eastern hubs, which have often been congested.

While air freight rates to Europe and the US have surged to their highest levels in two years, routing through alternative hubs, including in China offer viable alternatives. The availability of cargo space on Chinese airlines and the cost-effective nature of these routes are enabling exporters to avoid the bottlenecks plaguing Middle Eastern hubs. Additionally, India is emerging as a key transhipment point, where goods are trucked to Delhi and flown onward to Europe and the US.

Dhaka Airport’s infrastructure issues and capacity constraints have encouraged us to explore alternative transhipment routes. Creative routing strategies such as sea/air, where goods are shipped by sea to selected transhipment hubs before being flown to their final destination, are becoming vital to maintaining efficient supply chains.

Capacity growth in key regions is providing some relief, with air cargo capacity from Asia-Pacific to North America and Europe rising by over 16% and 19% respectively year-on-year. This increase is helping to balance the surge in demand and freight rates, ensuring that Bangladesh’s exporters can continue to navigate these challenging conditions.

Despite ongoing challenges, the outlook for Bangladesh’s exports are optimistic with creative air freight and alternative solutions keeping supply chains moving while mitigating the impact of high rates and capacity constraints. 

With flexible routing becoming an integral part of flexible logistics strategies, Metro continue to find innovative ways to adapt to volatile markets, with innovative solutions that maintain supply chain continuity. 

Our operations teams and local partners are navigating challenges at Chittagong Port and Dhaka Airport, while creative air, sea/air, and land/air strategies are helping mitigate the impact of high rates and capacity shortages. 

If you have any concerns or would like to discuss contingency plans to ensure stability in your supply chain, please EMAIL our Chief Commercial Officer, Andy Smith.

New shipping alliances for 2025

New shipping alliances for 2025

Sep 17, 2024 | , , , , , , , , , , , , ,

With the dissolution of the 2M partnership between MSC and Maersk in February 2025, new partnerships and slot-sharing agreements are emerging, positioning shipping companies in a transformed global market.

One of the key developments is the formation of the Premier Alliance, which will replace THE Alliance. This new partnership brings together Ocean Network Express (ONE), HMM, and Yang Ming, with MSC also entering into a vessel-sharing agreement (VSA) with the group.

The Premier Alliance will focus on key East-West trade lanes, including Asia-Europe, Asia-North America, and Asia-Mediterranean routes. The agreement will offer customers more direct coverage and frequent sailings, with plans for six Asia-North Europe services, including five in cooperation with MSC.

Now the world’s largest container shipping company, MSC has moved quickly to capitalise on its scale. Following its departure from the 2M alliance with Maersk, MSC will operate largely independently while maintaining slot-sharing agreements with the Premier Alliance and Zim.

MSC will manage 34 loops across five major trade routes, covering Asia-North America, Asia-Europe, the Mediterranean, and the trans-Atlantic. It will offer customers direct port-to-port services, providing over 1,900 direct port pairings through the Suez Canal (when it is accessible) and more than 1,800 via the Cape of Good Hope.

The formation of the Gemini Cooperation, a new alliance between Maersk and Hapag-Lloyd, adds another layer of competition. Unlike MSC’s direct coverage approach, Gemini Cooperation will focus on a hub-and-spoke service network. This divergence in strategy highlights how alliances are tailoring their operations to meet the specific needs of global trade.

As these alliances come into play, the shipping landscape will continue to evolve. The Premier Alliance and MSC, with their extensive network of direct services, will provide enhanced port coverage and flexibility, while Gemini Cooperation’s hub-based model may appeal to shippers seeking more consolidated routes.

Together, these developments signal a reshaping of global shipping routes, aimed at increasing efficiency and meeting the growing demands of international trade. With direct access to over 80 ports and expanded service options, the new alliances are set to redefine global logistics for the years to come.

We will keep you advised and updated on important developments within the container ocean freight market as they materialise.

If you have any questions or concerns about the Premier Alliance agreement, or would like to discuss the wider implications of the shipping alliance changes, please EMAIL our Chief Commercial Officer, Andy Smith.

Category: Middle East

4PL | Air | International Trade | Middle East | Sea/Air

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