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Europe Builds Momentum as Trans-Pacific Slowdown Deepens

Jul 9, 2025 | , , , , , , , , , , , ,

Global container shipping is evolving rapidly, with Asia–Europe trade lanes showing fresh strength just as the transpacific market enters a significant slowdown. This divergence is creating new challenges and opportunities for shippers.

On the Asia–Europe route, demand has been steadily rising, with spot freight rates climbing significantly since the end of May. After a sluggish start to the year, the peak season seems to have arrived, driven by stronger consumer sentiment in Europe, improved macroeconomic indicators, and renewed retailer confidence in stock building.

Forecasts for European imports have been upgraded. Instead of the previously expected 3.5% annual growth, volumes are now set to increase by 6% through 2025. This is being supported by lower inflation, falling unemployment, rising disposable income, and stronger euro/sterling, which is making imports from Asia more affordable.

A new UK trade agreement is also giving exporters a boost by reducing U.S. tariffs on inbound goods to 10%. Discussions with the EU are ongoing, and similar tariff terms could apply more broadly to European supply chains, further stimulating demand.

In contrast, container traffic from Asia to North America is heading in the opposite direction. The sharp increase in demand earlier this year, driven by front-loading stock ahead of tariff deadlines, has left warehouses full and order volumes slowing. With inventory levels high and economic uncertainty persisting, import activity is falling, and rates have dropped since early June from Asia.

Adding to this pressure is the looming reintroduction of US tariffs. Temporary suspensions on general and China-specific tariffs are set to expire in July and August respectively. While extensions are possible, the expected imposition of new duties, potentially rising to 55% for some Chinese goods, may suppress demand further and shift sourcing decisions in the second half of the year.

Although a short-lived spike in cargo arrivals at US West Coast ports may materialise in July, driven by attempts to beat the tariff deadlines, this is expected to be a temporary reprieve in a broader downtrend.

Meanwhile, carriers on the Asia–Europe route are preparing to balance higher demand with tighter capacity. Shipping lines plan to withdraw approximately 90,000 TEU of scheduled space in August compared to July, using blank sailings and capacity cuts to maintain pricing discipline. If volumes remain strong, this could lead to a second wave of rate increases before the end of summer.

Beyond commercial dynamics, security remains a key concern in the Red Sea. A bulk carrier was attacked this week using drone boats, rocket-propelled grenades, and small arms, in the first such assault since December. Analysts warn that the threat level to commercial shipping has risen significantly, with continued disruption to Suez-linked services.

As trade routes shift, tariffs tighten, and risks increase, the ability to adapt quickly and make informed shipping decisions is more critical than ever.

Metro’s sea freight team provides expert guidance to help you navigate volatile conditions, mitigate disruption, and make your supply chain more resilient. Whether you’re importing from Asia or exporting to global markets, we’ll keep your cargo moving and your costs under control.  EMAIL our managing director Andrew Smith.

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US Customs Reforms Raise Questions on HTS Entries and Transshipped Goods

Jul 9, 2025 | , , , ,

Businesses responsible for customs clearing goods into the US are adjusting to two significant Customs and Border Protection (CBP) changes that could affect classification practices and the treatment of goods in transit.

Firstly, CBP has expanded the number of Harmonised Tariff Schedule (HTS) codes allowed per entry line from 8 to 32. The change, which applies to both standard and reconciliation entries, is intended to streamline the entry process and improve digital efficiency across the Automated Commercial Environment (ACE).

The move to allow 32 HTS codes per line is a big shift, and speaks volumes about the uncertainty over future tariffs. It is clearly leaving the door open for further complexity, depending on how U.S. trade partners respond and while the largest brokers can technically handle it, those without automation or AI technology have voices concerns. 

For importers managing high-SKU consignments, the risk of misclassification or documentation errors increases significantly, potentially leading to delays, penalties or additional scrutiny.

Industry Seeks Clarity on Transshipment and Tariff Application
A second area of concern relates to the treatment of transshipped goods under the new tariffs introduced via the International Emergency Economic Powers Act (IEEPA) in April.

A coalition of 94 shipper, broker and forwarder organisations, including major retail and transport associations, has written to CBP and the Department of Homeland Security, urging them to clarify whether cargo transshipped via third countries remains eligible for tariff exemption if it left its origin before the April 5 deadline.

The industry points to longstanding CBP rulings that support exemption based on the original country of export, provided there is documentation such as bills of lading, purchase orders and invoices confirming that the US was the intended final destination.

However, it is reported that CBP’s responses have been inconsistent, with some entries flagged for duties despite meeting these criteria. Further guidance issued in May attempted to address this issue through a list of FAQs, but many in the trade community feel uncertainty persists, especially as tariff reviews continue and legal challenges to IEEPA enforcement remain unresolved.

Metro’s Support for UK Exporters and US Importers
In this changing environment, Metro’s customs brokerage services are designed to ensure that clients stay compliant, informed, and in control. Our AI, ML and automation driven brokerage platform – CuDoS – is designed to handle the expanded 32-code entry structure, making it easier to manage complex multi-SKU shipments with speed and accuracy.

For exporters selling to US group companies or under Delivered Duty Paid (DDP) terms, our US-based team at Metro Global USA provides end-to-end clearance support, including documentation validation and tariff strategy. We continuously monitor CBP guidance and help structure entries to support exemption eligibility, including shipments routed via transshipment hubs.

Whether navigating classification changes or securing the right evidence for tariff relief, Metro combines local knowledge, intelligent systems, and customs expertise to simplify compliance and protect your business.

EMAIL our managing director Andrew Smith, to learn about our customs services and CuDoS platform:

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Budget Pressures Raise Questions for Business

Jul 9, 2025 | , ,

Chancellor Rachel Reeves has triggered fresh uncertainty after cancelling a planned welfare reform expected to save £5.5 billion, leaving a significant hole in the Treasury’s accounts and raising the prospect of tax increases later this year.

Markets reacted swiftly: sterling dipped and government borrowing costs rose, reflecting investor concerns over how a growing £40 billion fiscal shortfall will be addressed. A revised budget is due this autumn, with attention turning to how the burden might be shared.

While no measures have been formally proposed, the freight industry is on alert. Possible changes include:

– Higher fuel duty, which would increase transport and delivery costs
– Stricter customs enforcement, potentially adding friction and delay
– Corporate tax rises, squeezing already tight logistics margins

The British International Freight Association (BIFA) has urged the government to consult with the sector before taking action, stressing the need for stability and recognising logistics as vital to UK trade.

Offering a broader view, the Bank of England’s latest financial stability report suggests most UK companies remain resilient. Even under pressure from global shocks, including tariff hikes, rising interest rates, and a 10% fall in earnings, most are expected to meet their debt obligations.

For business, the message is clear: policy uncertainty may be unavoidable, but financial agility and early engagement will be key to overcoming what comes next.

EMAIL Laurence Burford, Chief Financial Officer, today to explore how Metro can support your business through ongoing global disruption.

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Middle East Air Freight Disruption Despite Partial Recovery

Jun 24, 2025 | , ,

Qatar Airways has resumed operations from Doha following a temporary airspace closure triggered by Iranian missile attacks on US bases in Qatar and Iraq. The reopening has offered some relief, but flight schedules remain heavily disrupted, and wider instability across the Middle East continues to affect air freight flows.

The recent hostilities briefly grounded flights from Doha and contributed to a fresh wave of cancellations across the region, just days after US airstrikes on Iranian nuclear facilities escalated the conflict. Although a short-lived ceasefire between Iran and Israel allowed for a partial resumption of services, tensions have reignited, forcing airlines and cargo operators to remain cautious.

Qatari airspace reopened in the early hours, but Qatar Airways warned of significant delays as flights resumed and schedules were rebuilt. Meanwhile, Emirates SkyCargo confirmed it has begun uplifting additional fuel on flights from Dubai to allow for longer rerouting — a measure that could reduce payload and force the offloading of some shipments.

Despite these challenges, cargo operations in the region have proven relatively resilient. From Saturday to Monday, around 13,000 tonnes of air freight moved from the Middle East to Europe, only slightly down from early June levels. Capacity from Asia Pacific into the Middle East has even increased over the same period, climbing to 18,000 tonnes.

Airline Suspensions and Reroutes Continue
Passenger services, many of which carry belly-hold cargo, remain widely impacted. Airlines including British Airways, Air France KLM, Singapore Airlines, United Airlines, American Airlines, Air Canada, Finnair, and Air Astana have cancelled or suspended flights to key Gulf hubs such as Dubai, Doha, and Riyadh. Flights to Israel, Iraq, Iran, Lebanon, Jordan, and Syria also remain suspended due to the continuing risk.

Flight tracking data confirms extensive rerouting around Iranian and Iraqi airspace. Empty corridors now dominate the skies over key parts of the Middle East, with many services opting for longer paths via Egypt, Saudi Arabia, or the Caspian region adding time, fuel cost, and operational complexity.

While the overall air freight network remains intact, the situation is highly volatile. The risk of sudden airspace closures, GPS interference, and further retaliatory strikes remains high, particularly for carriers linked to the United States. Capacity constraints, schedule delays, and routing inefficiencies may persist until regional tensions ease.

We’re actively monitoring events, adjusting routings, and working with trusted partners to safeguard your shipments. If your supply chain is exposed to disruption in the Middle East, EMAIL our managing director, Andrew Smith, for clear advice and fast solutions.

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