refinery

Fuel shocks across ocean, air and road freight

With the Strait of Hormuz effectively closed, crude oil can still exist within the region, but refined products, which includes marine fuel, jet fuel and diesel, can no longer move freely to key consumption markets, which has triggered a sharp divergence in pricing and availability across all modes. 

For shippers, this creates a higher cost floor, as transport fuels are no longer moving in line with crude. Marine bunker, jet fuel and diesel each have their own supply chains and crack spreads (the margin between crude and refined products), and are now behaving independently of Brent. This is driving bunker-led cost pressure in ocean, jet fuel-driven inflation in air, and diesel-driven cost escalation in road. 

Ocean freight: bunker costs reset the pricing floor

In ocean freight, bunker fuel has become the dominant cost driver. Asian fuel hubs, particularly Singapore, are experiencing significant pressure as rerouted vessels increase demand while supply remains constrained.

This has created a disconnect between traditional pricing mechanisms and real-time costs. 

Emergency bunker surcharges are being applied across major trade lanes, while standard adjustment factors lag behind market conditions and may only catch up with current fuel inflation later in the year.

The result is a structurally higher cost base, with ocean rates now reflecting fuel volatility rather than underlying demand alone. 

Air freight: jet fuel shortage tightens capacity

Air freight is facing the most acute fuel-driven pressure. Gulf refineries, which typically supply jet fuel to Europe and Asia, are unable to export at normal levels, creating a shortage of refined product.

This has driven a sharp increase in jet fuel prices, with crack spreads widening dramatically from around $16 per barrel pre-crisis to approximately $100 in some regions. 

This regional price divergence means that Asia and Middle East jet fuel benchmarks sit substantially above North American levels, meaning that every kilo of freight uplifted is starting from a materially higher fuel cost base. 

As a result, airlines are adjusting networks, reducing marginal capacity and prioritising fuel efficiency, tightening available uplift and sustaining elevated airfreight rates.

Road freight: diesel inflation feeds through to transport costs

Road freight is also seeing significant cost pressure, with diesel prices rising independently of crude due to refinery constraints and regional supply dynamics.

Fuel accounts for roughly 30% of total truck operating costs, meaning sustained diesel inflation is already feeding through into pricing. 

At the same time, increased reliance on overland routes across the Middle East is adding further demand pressure, compounding both cost and capacity challenges.

What this means for shippers

  • Expect fuel-driven cost volatility across all modes
  • Plan for longer and less predictable transit times
  • Build flexibility into routing and inventory strategies
  • Monitor surcharge mechanisms

Fuel disruption, routing constraints and capacity pressure are now closely linked. Managing one without the others is no longer effective.

Metro works with customers to model alternative routes, balance mode selection and manage cost exposure in real time. If you are seeing rising costs, delays or uncertainty in your supply chain, EMAIL managing director, Andrew Smith, to secure the most effective solution for your cargo.

survey

Customer feedback highlights strong service performance

Customer feedback from the last bulletin’s survey confirms Metro’s position as a trusted and increasingly strategic logistics partner, with strong scores across relationship quality, accessibility and overall service delivery.

The ability to reach the right people quickly continues to stand out, with 86% of customers rating this as good or excellent and a weighted score of 4.0 out of 5. This reflects the importance Metro places on responsiveness and direct access to experienced teams, particularly in fast-moving or disrupted conditions.

Customers are clear in how they view the relationship. 71% describe Metro as a strategic logistics partner, with no respondents positioning the business as purely transactional. 

This is supported by consistently positive scores across capability and understanding. 

Customers report a strong grasp of Metro’s service offering, confidence in handling complex shipments, and recognition that value extends beyond simply moving freight, with all key measures scoring above 3.2 out of 5.

Solid operational performance in a challenging market

Operational delivery remains resilient despite ongoing global disruption. Feedback shows that 86% rate delivery as good, with a balanced spread reflecting the realities of a complex operating environment and a weighted score of 3.0 out of 5.

Communication throughout the shipment lifecycle is also performing well overall, with 57% rating it as good or excellent (weighted 3.14 out of 5). This is particularly notable given the continued impact of external events, including Middle East disruption, which is affecting routing, lead times and planning across supply chains. 

Issue resolution is viewed as steady and dependable, with the majority of responses falling within neutral to positive territory and a weighted score of 3.29 out of 5, reflecting consistent support even in complex scenarios.

Confidence remains high as customers look ahead

Customer confidence in Metro remains strong. The overall recommendation score sits at 4.14 out of 5, with 67% of customers likely to recommend Metro to colleagues or industry peers. 

Looking ahead, most customers expect freight volumes to remain stable or increase slightly over the next 12 months, reinforcing the need for reliable and adaptable logistics support.

Feedback also highlights the ongoing impact of Middle East disruption, particularly on ocean freight and inventory planning, while air freight is seen as less directly affected. 

Continuous improvement shaped by customer insight

Alongside these positive results, customers have identified clear opportunities to enhance service further. The focus is on improving visibility, increasing the speed of information flow and continuing to refine operational execution.

Metro is actively using this feedback to guide service development, ensuring improvements are aligned with real customer priorities and evolving market conditions.

Have your say

If you have not yet taken part in the Metro customer survey, we would encourage you to do so.

Your feedback helps shape how we invest, improve and support your supply chain. 

Take a few minutes to share your views and be part of the next phase of service development.

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US tariffs

US tariff refund process opens

The long-anticipated process to recover US tariffs imposed under the International Emergency Economic Powers Act (IEEPA) has now begun, with U.S. Customs and Border Protection (CBP) launching its new refund system.

The introduction of the Consolidated Administration and Processing of Entries (CAPE) platform on 20 April 2026 marks a critical milestone. Businesses can now begin submitting claims for duties paid during the affected period, with the first submission deadlines from 4 May 2026.

However, while access to refunds is now available, the window to act is narrow and the process itself is far from straightforward.

For UK businesses trading with the United States, and particularly those operating under Delivered Duty Paid (DDP) terms, this represents a significant financial opportunity and a complex compliance exercise.

CAPE system introduces structured but time-sensitive process

The CAPE system, accessed via the ACE portal, is the exclusive route for submitting refund claims. Only the Importer of Record or an authorised customs broker can file, using a structured declaration format that requires detailed historical entry data.

Phase 1 of the programme is now active, covering unliquidated entries and those recently finalised. This initial phase is expected to account for a significant proportion of eligible claims, but strict timelines mean businesses must act quickly to avoid missing eligibility windows.

Once claims are accepted, refunds including interest are expected within 60 to 90 days, although actual timelines will depend on the quality and completeness of submissions.

A large-scale reconciliation exercise, not a simple refund

Despite the introduction of automated systems, the process is best understood as a full customs reconciliation programme rather than a standard reimbursement.

Each claim must be validated against historical entry data, including confirmation of importer-of-record status, tariff classifications, and whether entries have been liquidated, adjusted or previously disputed.

Given the scale, with tens of millions of entries under review, submission, validation and payment will take place in phases, and delays are likely where data is incomplete or inconsistent.

For entries outside the initial phase, businesses may need to pursue alternative routes such as formal protests, typically within 180 days of liquidation, adding further complexity.

The opportunity to recover duties is not limited to US-based importers. Many UK and international exporters may also be eligible where they acted as importer of record under DDP terms.

In these cases, businesses must demonstrate full control and responsibility for the original customs entries, making data accuracy and documentation critical to a successful claim.

Early action will determine success

With submission windows already open and deadlines in force, the focus now shifts to preparation.

Businesses should prioritise identifying affected shipments, confirming importer-of-record status, verifying tariff classifications, checking liquidation timelines and consolidating supporting documentation.

Those that act early and submit accurate, well-prepared claims will be best placed to move through the process efficiently and secure full recovery.

Metro supports importers and exporters in identifying eligible entries, preparing compliant submissions and managing claims through to reimbursement. If your business has exposure to US tariffs, EMAIL our Head of Customs & Compliance, Andy Fitchett, today to assess your position and secure the recovery you are entitled to.

Andrew White

Celebrating 45 years of service: Andrew White retires from Metro

After an extraordinary 45-year career, Metro bids farewell to one of its most influential and long-serving colleagues, Andrew White, as he retires from the business he joined in the early 1980s.

Andrew’s journey is a rare one. Joining as employee number eight, he has spent his entire career at Metro, progressing from apprentice to Operations Director. Over that time, both the business and the wider industry have transformed dramatically. From the early days of carbon copies, telex tape, fax machines and manual documentation to today’s digital, paperless, data-driven supply chains.

Since Andrew joined in 1982, global trade has weathered events such as the end of the Cold War, the rise of China as a manufacturing powerhouse, the financial crisis, Brexit and the Covid-19 pandemic. Through it all, Andrew has been a constant calming presence at Metro, helping guide the business through each challenge and change.

His contribution to Metro’s development has been significant and far-reaching. Andrew played a central role in designing, implementing and continually evolving the company’s operational platforms. Systems that remain fundamental to how Metro operates today. He also led a number of key transformation projects, including major systems rollouts that helped modernise the business and support its growth into new markets and regions.

Beyond systems and infrastructure, Andrew’s impact is perhaps most strongly felt through people. Over four decades, he has mentored and coached countless colleagues, sharing knowledge, shaping careers and helping build the culture that defines Metro today. Many of the processes, standards and ways of working embedded across the business can be traced back to his influence.

Andrew’s career has also been global in scope. He has travelled extensively, supporting the development of Metro’s international footprint and playing a key role in establishing overseas hubs and operational platforms. His work has helped position Metro as a connected, forward-looking logistics provider with the capability to operate across multiple regions and markets.

For those who have worked alongside him, Andrew has been more than a colleague. He has been a trusted advisor, a steady hand during periods of change and a consistent advocate for doing things the right way. His long-standing presence has provided continuity through decades of growth and transformation.

His retirement marks the end of an era, but also an opportunity to reflect on a remarkable career defined by commitment, innovation and loyalty to the business.

As CEO Grant Liddell reflects:

“It is with a mixture of joy and sadness that we mark Andrew’s retirement after 45 years with the business. From joining as an apprentice to becoming Operations Director, Andrew has contributed massively to Metro’s success over five decades. He has been a valued and ever-present member of the Metro family, and his legacy will live on through everything he has helped build. We wish him all the very best in his retirement and look forward to staying in touch with a much-valued colleague and friend.”