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.

Rhine low water levels

Falling Rhine levels put European supply chains under growing pressure

Aug 19, 2026 | , , ,

Record-low water levels on the Rhine are creating another significant challenge for European supply chains, restricting barge capacity, increasing transport costs and putting additional pressure on already constrained road and rail networks.

The Rhine is one of Europe's most important freight arteries, connecting Rotterdam and Antwerp-Bruges with industrial centres across Germany, France and Switzerland. Around 35% of containers moving between Rotterdam and their hinterland travel by inland waterway, making reliable barge operations an important part of the region's freight infrastructure.

Persistent heat and drought have pushed water levels to exceptional lows, particularly around Kaub in Germany, a critical point for navigation on the Middle and Upper Rhine. Conditions have deteriorated to the point where some operators have suspended bookings beyond Kaub and sections of the river have become extremely difficult for container traffic.

The immediate problem is not simply whether barges can sail. Lower water levels dramatically reduce the amount of cargo they can safely carry.

Capacity disappears as the Rhine falls

Water levels at key Rhine gauges have fallen as low as 7cm at critical points, severely restricting barge operations and the impact on effective capacity is dramatic. 

Some mid-sized container barges with a nominal capacity of around 300 TEU are reportedly able to carry only about 20% of their normal capacity, while larger barges offering around 400 TEU of capacity have been completely unable to navigate some river stretches.

That creates an unusual form of supply chain disruption. The physical infrastructure remains in place, but much of its freight capacity has effectively disappeared.

Costs are rising accordingly. Low-water surcharges on the most severely affected sections have reached €1,350 per TEU around Kaub and €895 per TEU around Cologne, adding 

potentially substantial costs to container movements into Germany and Central Europe.

The disruption also threatens cargo flows through Europe's two largest container gateways. Around 35% of containers moving between Rotterdam and its hinterland travel by inland waterway, illustrating the scale of the potential problem if barge capacity remains restricted.

If containers cannot move inland quickly enough, they can accumulate at terminals in Rotterdam and Antwerp, potentially transferring congestion from the Rhine back towards the deep-sea ports.

Road and rail cannot simply replace barges

Shippers are increasingly turning to road and rail, but neither mode has enough spare capacity to replace lost barge movements quickly.

The scale of the substitution challenge is significant. Moving the containerised cargo carried by one barge can require more than 200 trucks. Replicating barge capacity by road would therefore place considerable additional pressure on trucking networks while increasing cost, congestion and emissions.

Available capacity is already tightening. In the most constrained areas, securing a truck can reportedly take up to two weeks, while additional rail capacity can require as much as six weeks' advance notice.

Rail also faces infrastructure constraints. Major renovation work on the Troisdorf–Wiesbaden corridor is restricting capacity on an important freight connection between Germany's inland regions and its European seaport gateways, just as demand for alternatives to barge transport is increasing.

The additional pressure is now feeding directly into transport costs. From 20 August, new congestion surcharges are being applied to selected container movements from Rotterdam and Antwerp, including €44 per container for trucking and €50 per container for rail and combined rail-road movements to and from affected German and Alsace locations.

For shippers, low Rhine levels are therefore no longer simply an inland-waterway issue. They are increasing costs and reducing available capacity across barge, road and rail simultaneously, while extending lead times and increasing the risk of missed delivery windows.

Weather is becoming a global supply chain variable

Extreme weather is increasingly affecting freight networks across different regions and modes. European heatwaves and drought are restricting inland waterways, while typhoons have recently disrupted Chinese ports and contributed to container and vessel-space shortages. Drought and water-management measures are also restricting vessel loading through the Panama Canal.

These events may be thousands of miles apart, but their supply chain effects are remarkably similar: effective capacity falls, schedules become less reliable, alternative routes become congested and transport costs increase.

As Metro recently highlighted in its analysis of how climate is becoming one of the biggest supply chain risks, extreme low-water events on the Rhine have reportedly occurred more frequently during the past decade than in the preceding five decades.

Contingency planning can no longer focus solely on recovering from an exceptional event. Shippers increasingly need supply chains designed to accommodate weather-related disruption as an ongoing operational risk.

Recovery could create another bottleneck

Rainfall would improve the situation, but higher water levels would not produce an immediate return to normal operations.

Barges and equipment displaced by weeks of disruption need to return to their scheduled rotations. A rapid recovery could also result in vessels arriving simultaneously at Rotterdam and Antwerp, transferring congestion from the river back towards the ports.

Shippers therefore need to consider both the immediate disruption and the recovery period that follows it.

Metro builds resilience beyond the port

When a major transport artery loses capacity, waiting for conditions to improve is rarely enough. Shippers need visibility of the disruption, early access to alternative capacity and the ability to switch between barge, rail and road before those alternatives become constrained.

Metro works across the supply chain to identify vulnerabilities and develop contingency options around individual cargo flows. By considering port choice, inland routing, available capacity, lead times and total transport cost together, Metro can help customers protect deliveries when established routes come under pressure.

Weather may be increasingly unpredictable, but your response does not have to be. Metro helps build flexibility into your European supply chain, giving you the options to keep cargo moving when critical links cannot operate as planned.

To learn more, EMAIL Managing Director Andrew Smith today

Typhoon HKG 1440x1080 1

Climate is becoming one of the biggest supply chain risks

Aug 5, 2026 | , , , , , , , , ,

For years, weather disruption was largely viewed as an operational inconvenience. A storm might delay a vessel, flooding could close a road for a day or two, or high winds might temporarily suspend port operations. That is no longer the case.

Across the world's major trade routes, climate-related disruption is becoming more frequent, affecting more regions at the same time and lasting significantly longer. Drought, heatwaves, wildfires and tropical storms are now influencing shipping capacity, inland transport, manufacturing and inventory planning simultaneously.

Recent events across Europe, Asia and the Americas demonstrate that weather is no longer simply an environmental issue. It’s becoming a fundamental supply chain risk that needs to be anticipated and planned for. 

Panama Canal faces renewed pressure

One of the clearest examples is the Panama Canal, where falling water levels in Gatun Lake have prompted the Panama Canal Authority to progressively reduce maximum vessel draft during the summer as it conserves freshwater ahead of an anticipated Super El Niño. While current restrictions remain less severe than those experienced during the 2023 drought, they are already increasing costs for shippers. 

Several major ocean carriers have introduced Panama Canal surcharges ranging from $100 to $320 per TEU on Asia-US East Coast and Gulf Coast services, reflecting the reduced cargo each vessel can carry under tighter draft restrictions. Although the canal continues to operate normally, any future reduction in daily transit slots would have a much greater impact on schedule reliability than the current draft limits alone. 

Europe's rivers are feeling the strain

The effects of prolonged hot, dry weather are also being felt across Europe's inland transport network.

Water levels on the Rhine have fallen to critically low levels, severely restricting barge operations between Rotterdam, Antwerp and inland Germany. Operators have been introducing low-water surcharges for several weeks, while some services have become commercially or operationally unviable. 

Efforts to transfer freight onto rail have proved equally challenging, with alternative corridors already operating close to capacity because of ongoing infrastructure works.

For manufacturers relying on Europe's inland waterways, disruption is no longer confined to river transport, it increasingly affects rail capacity, road availability and overall distribution costs.

Wildfires are disrupting European road freight

Across southern Europe, another climate-related challenge is emerging, as large wildfires in France and Spain disrupt some of Europe's busiest freight corridors through road closures, diversions, reduced visibility and extreme temperatures. Longer journey times are increasing fuel consumption, delaying deliveries and placing additional pressure on temperature-controlled supply chains. 

The impact extends well beyond the affected regions. France remains the principal land bridge between the UK and the Iberian Peninsula, and with around 75% of UK trade with continental Europe transported by road, closures and diversions across France can have far-reaching consequences for supply chains across Europe.

For businesses importing fresh produce or operating just-in-time supply chains, even relatively localised events can have continent-wide consequences.

Typhoon season continues to test Asian supply chains

Meanwhile, North Asia is experiencing another challenging tropical storm season.

Following the disruption caused by Typhoon Bavi, Typhoon Dolphin is threatening further delays across one of the world's busiest manufacturing and shipping regions. Major ports including Shanghai, Ningbo and Qingdao are already managing congestion, with delays of up to 8 days and while the typhoon is being downgraded, another severe weather event risks extending vessel queues and delaying cargo movements before previous backlogs have fully cleared. 

The timing is particularly significant as peak season demand continues, increasing pressure on both container shipping and bulk commodity movements throughout the region.

Weather disruption is becoming interconnected

Individually, each of these events presents a local operational challenge, but together, they highlight a much broader trend.

Lower water levels restrict major waterways. Heat and drought increase wildfire risk. Tropical storms disrupt manufacturing and port operations. Each event creates knock-on effects that spread rapidly through global supply chains, affecting transport capacity, transit times and logistics costs far beyond the immediate area.

With forecasters warning that a strengthening Super El Niño could increase the frequency and severity of weather extremes over the coming months, businesses should expect climate-related disruption to remain a significant operational risk. 

Building resilience into the supply chain

Extreme weather can no longer be treated as an occasional disruption that businesses simply react to.

Organisations that build resilience into their supply chains, through flexible transport options, contingency planning, alternative routings and greater supply chain visibility, will be far better placed to manage future disruption than those relying on historical weather patterns.

As climate events become more frequent and interconnected, resilience is becoming every bit as important as cost and transit time.

Whether you're moving freight through Europe, North America or Asia, Metro can deliver visibility throughout your supply chain and help you prepare for disruption before it happens. From alternative routings and multimodal solutions to warehousing, customs and contingency planning, we'll help build a more resilient supply chain that keeps your cargo moving when conditions change.

EMAIL Managing Director, Andrew Smith to start a conversation. 

Trade handshake

UK trade deals open new opportunities

Jul 22, 2026 | , , , , , , , , , , , , , , , ,

The UK's trade agenda continues to gather momentum, creating new opportunities for businesses trading internationally, while reshaping the way they access global markets. 

The most recent agreements with major trading partners across Asia-Pacific, the Gulf, North America and Europe have expanded market access, reduced tariffs and strengthened supply chain resilience.

For UK businesses, these agreements represent far more than diplomatic milestones. They offer practical commercial advantages, from lower export costs and simplified market access to stronger supply chains and improved regulatory cooperation. While some negotiations remain ongoing, the overall direction is clear: the UK is building an increasingly diverse portfolio of international trading relationships that extends well beyond traditional European markets. 

UK-EU relations continue to evolve

Although the planned UK-EU summit scheduled for July has been postponed following the change in UK political leadership, negotiations have continued behind the scenes.

Officials are progressing work on the mandatory five-year review of the Trade and Cooperation Agreement (TCA), alongside wider discussions aimed at improving the trading relationship.

Several areas could deliver tangible benefits for businesses. Negotiations on sanitary and phytosanitary (SPS) standards are intended to reduce border checks on food and agricultural exports, while discussions continue around linking UK and EU emissions trading systems, cooperation on electricity infrastructure and broader regulatory alignment.

While no major changes have yet been agreed, businesses trading with Europe should continue to monitor developments, as incremental improvements to customs procedures and border processes could reduce friction for many exporters over the coming months.

CPTPP becomes a reality for UK exporters

One of the most significant developments has been Mexico's ratification of the UK's accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) on 22 June 2026.

With Canada expected to complete implementation in September, UK businesses will soon benefit from preferential access across all twelve CPTPP member economies, creating one of the world's largest free trade areas spanning Asia-Pacific, North America and Latin America.

Collectively, CPTPP countries account for around 15% of global GDP and more than 500 million consumers. For exporters, the agreement opens new opportunities across manufacturing, consumer goods, food and drink, automotive, technology and professional services, while giving businesses greater flexibility to diversify international supply chains beyond traditional markets.

Gulf agreement strengthens access to a fast-growing region

May’s new Free Trade Agreement with the Gulf Cooperation Council (GCC) represents another important step in expanding Britain's global trading relationships.

Covering Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, the agreement is expected to remove hundreds of millions of pounds in annual tariffs on British exports once fully implemented.

Products including food, beverages and consumer goods are expected to benefit from lower duties, while wider provisions covering digital trade, investment and business mobility should make it easier for UK companies to establish and grow commercial operations throughout the Gulf.

For businesses already trading with the Middle East, the agreement offers greater certainty at a time when the region continues to play an increasingly important role in global logistics and supply chains.

Switzerland opens new opportunities for UK exporters

The UK's latest agreement with Switzerland further expands opportunities for British exporters, particularly across agriculture and food production.

The new Free Trade Agreement removes or reduces tariffs on a wide range of British agricultural exports, including lamb, vegetables, dairy products, beef and sparkling wine, while also strengthening services trade between the two countries.

The agreement, which was finalised on 13 July is expected to increase bilateral trade by more than £7 billion annually, reinforcing Switzerland's importance as one of the UK's highest-value trading partners.

UK-US cooperation goes beyond tariffs

The UK and United States continue to strengthen their trading relationship through pharmaceutical supply chain agreement signed at the end of 2025.

The arrangement protects more than £5 billion of annual UK pharmaceutical exports from tariffs while creating closer cooperation on medicine availability, manufacturing resilience and regulatory alignment.

Beyond the life sciences sector, the agreement demonstrates a growing emphasis on supply chain resilience rather than simply reducing tariffs. Greater cooperation on trusted sourcing, manufacturing capacity and regulatory processes reflects the increasing importance governments are placing on securing critical supply chains in strategically important industries.

Turning opportunity into competitive advantage

Securing a trade agreement is only the first step. Real commercial success depends on understanding customs requirements, managing international logistics and building resilient supply chains capable of supporting long-term growth.

Metro helps businesses take full advantage of emerging global trade opportunities through integrated freight forwarding, customs expertise and end-to-end supply chain management. Whether you're looking at new sourcing options or expanding into Europe, North America, the Gulf or the Asia-Pacific region, our global network and local specialists help simplify international trade while reducing cost, risk and complexity.

To discover how Metro can help your business unlock new international trading opportunities, EMAIL Managing Director Andrew Smith today.

Category: EU

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