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UK Carmakers Challenged While China’s Ro/Ro Fleet Eye Europe

Jul 9, 2025 | , , , ,

Britain’s automotive industry is facing a historic low, as UK vehicle production in May 2025 fell to its weakest level since 1949. Yet while UK manufacturers scale back, Chinese Ro/Ro operators are expanding aggressively, driven by rising vehicle exports and a strategic push into Europe’s automotive supply chain.

According to the Society of Motor Manufacturers and Traders (SMMT), May output plummeted by 33%, marking the fifth consecutive monthly drop and the worst May performance outside the pandemic in 75 years.

Passenger car production fell by 31% due to factory retooling, restructuring efforts, and export pressures, particularly the additional 25% US tariffs on British-built cars. Commercial vehicle output was hit even harder, down 54%.

Exports also declined sharply, with overall car exports down 28% in May, with sales to the US down more than 55% and EU shipments falling by 22.5%. The US now accounts for just 11.3% of UK car exports, compared to 18.2% last year. Commercial vehicle exports slumped by over 70%, dragging total export share down to 41%, from nearly 68% last year.

While trade deals with the US, EU, and India offer a glimmer of recovery, and the UK government’s new Industrial Strategy has been cautiously welcomed, competitiveness remains constrained by high energy costs and limited global market access.

Chinese Ro/Ro Fleet Target Europe
In sharp contrast, China’s automotive and maritime sectors are expanding in tandem and targeting Europe for growth. Chinese car exports hit 6 million units last year and have already grown by another 6% in 2025. 

Backed by this momentum, Chinese logistics and manufacturing giants, including BYD, Geely and Cosco are deploying a wave of new pure car and truck carriers (PCTCs) to challenge global Ro/Ro shipping. China’s top operators already operate over 330,000 CEUs of deep-sea capacity, with more than 160 additional car carriers on order for delivery by 2028.

The strategy is clear: support Chinese auto exports, then aggressively seek return cargo from the UK, Europe and the US. Some of the largest PCTCs in the world, like BYD’s 9,200-CEU vessels, are already sailing, with their maiden voyages underway.

Unlike traditional operators, which serve a broad customer base and global networks, the Chinese model is focused and fast. With fewer port calls and less dwell time, these vessels will achieve higher utilisation and faster turnarounds, giving them a cost and scheduling advantage.

However, Chinese carriers currently lack established backhaul cargo volumes. To fill empty capacity on westbound legs, the expectations is that they will cut freight rates, potentially sparking a rate war in the PCTC market. While this may benefit cargo owners in the short term, it raises serious concerns about rate dumping and market distortion.

For automotive exporters already grappling with global competitiveness, rising Chinese presence in vehicle manufacturing and Ro/Ro shipping could further disrupt market balance, especially if European importers pivot toward Chinese brands supported by their own integrated logistics infrastructure.

Metro understands the complexities of global automotive supply chains and the growing pressures facing UK manufacturers. Our multimodal freight services, OEM experience and tailored Ro/Ro solutions help keep your production lines supplied and your finished vehicles moving to market—despite rising competition.

EMAIL our managing director Andrew Smith.

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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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Survey Highlights Why Supply Chains Must Evolve or Fall Behind

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

Global businesses must prepare for a fundamental overhaul of their supply chains, as the cumulative impact of geopolitical tension, climate volatility, cost inflation and sourcing risk reshapes the logistics landscape.

According to a recent survey by the Boston Consulting Group (BCG), 87% of leading global companies are planning to restructure their global supply chains. Over half have already suffered serious procurement cost increases, with more than one in five citing disruption from climate-related events such as wildfires and flooding. 

In addition to economic uncertainty and climate-related disruption, businesses are contending with fractured supplier networks, unstable trade relationships, and growing geopolitical risk. Ongoing conflict in Europe, heightened tensions between global powers, and renewed unrest in the Middle East are all adding urgency. 

The Challenges BCG Identified:

  • 57% of firms have suffered supply shortages
  • 55% are being hit hard by procurement cost inflation
  • 33% see energy prices as a major threat
  • 23% have experienced disruption from climate events
  • 20% cite global geopolitical tensions as a business risk

Fragmented supplier networks and over-reliance on vulnerable sourcing channels are being exposed, yet fewer than half of companies are using digital tools to spot weaknesses or manage risk proactively. While many are now diversifying suppliers, near-shoring and conducting more frequent evaluations, most remain trapped in reactive decision-making.

Although 40% of businesses now carry out regular supplier assessments and 36% have adopted dual or multi-sourcing strategies, the majority still operate reactively. Only 45% are using digital tools to anticipate and address supply chain vulnerabilities before they escalate. The result is a growing gap between firms that can adapt, and those that can only respond.

From Restructuring to Resilience
The shift is clear: supply chains need to be more agile, digitally enabled, and less geographically dependent. But this transformation doesn’t happen through strategy alone. It requires digital processes, and partners built to handle change.

That’s where Metro’s supply chain control platform, MVT, provides a distinct advantage. Developed to unify procurement, freight, fulfilment and inventory management, MVT transforms fragmented operations into a connected, insight-driven system—giving businesses the visibility and control needed to stay ahead of disruption.

Whether you’re managing multi-country supplier networks, tracking shipment milestones in real time, or integrating with your ERP and sales platforms, MVT enables data-backed decisions at every stage. It’s more than visibility—it’s the backbone for scalable, resilient logistics.

With Metro’s global reach, sector expertise, and fully integrated services across freight, customs, warehousing and fulfilment, we help customers re-engineer supply chains that are responsive, cost-efficient, and future-ready.

Unlock the power of connected logistics
Disruption may be constant—but with the right digital tools and operational model, your supply chain doesn’t have to be vulnerable.

EMAIL our managing director, Andrew Smith, to learn how MVT can give you total control of your supply chain.

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Momentum for UK Carmakers in Landmark US Trade Deal

Jun 24, 2025 | , , , ,

British car manufacturers will benefit from cost savings and improved export competitiveness, following the formal implementation of the first stage of the UK–US ‘Economic Prosperity Deal’ signed at the G7 Summit on 16 June 2025.

Under the deal, up to 100,000 UK-built vehicles per year can now enter the United States at a reduced 10% tariff, down from the previous 25%. The change is part of a broader executive order issued by President Donald Trump to “operationalise” the agreement announced in May. 

The automotive tariff changes are already being enacted, with the US Commerce Secretary directed to implement them formally within seven days of the executive order and the UK government expects the new rates to take effect by the end of June.

Prime Minister Starmer described the development as “a very good day for both of our countries – a real sign of strength”, adding: “This now implements on car tariffs and aerospace our really important agreement.”

The deal represents a significant strategic win for the UK automotive sector, which relies heavily on US exports and was previously burdened by high tariff barriers. The new quota-based relief delivers meaningful margin gains for UK carmakers and positions them to grow market share in the world’s second-largest car market.

The agreement also eliminates US tariffs on UK aerospace components and jet engines, providing immediate benefits to another high-value manufacturing sector. UK exporters in both industries are now exempt from levies introduced under Trump’s broader national security tariffs, which have seen global rates surge as high as 50% for some goods.

Steel and aluminium remain under review. While the UK has been granted a temporary exemption from the newly doubled 50% global tariff, the original 25% rate still applies. Trump’s executive order outlines plans for a future tariff-rate quota on UK metal imports, with details to be finalised by the US Department of Commerce based on UK compliance with broader trade commitments and security measures.

In return for the reduced tariffs, the UK has agreed to allow expanded US market access for beef, ethanol, and select industrial goods. The inclusion of a 1.4 billion litre tariff-free ethanol quota, equivalent to the UK’s entire annual demand, has drawn criticism from domestic bioethanol producers who warn of damaging effects on local industry.

Despite this, the agreement is being hailed as a breakthrough for key UK export sectors. Speaking after the announcement, UK Business and Trade Secretary Jonathan Reynolds noted. “We agreed this deal with the US to ensure jobs and livelihoods in some of our most vital sectors were protected, and we are delivering on the first set of agreements in a matter of weeks.”

For the automotive sector, the speed of implementation, clarity on tariff relief, and reaffirmed transatlantic cooperation point to a more promising and profitable trading future.

To explore how Metro supports leading automotive brands with global logistics, visit metglob.azurewebsites.net/automotive or EMAIL our managing director, Andrew Smith, to discuss post-deal opportunities.

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