France Ends Regime 42: What It Means for Exporters and Why You Should Attend Metro’s December Customs Webinar

France Ends Regime 42: What It Means for Exporters and Why You Should Attend Metro’s December Customs Webinar

France will withdraw Regime 42 from 1 January 2026, removing the VAT simplification that currently allows goods to enter France without import VAT when they are destined for another EU member state.

The ending of Regime 42 has attracted little publicity, but it will directly affect UK exporters shipping on DDP terms through the primary Dover–Calais Channel crossing.

Under DDP, the UK exporter is responsible for EU import formalities. Once Regime 42 is removed, any DDP shipment entering France will require French import VAT accounting, unless the exporter holds a French VAT registration. For many businesses, this introduces new administrative steps and potential cash-flow exposure.

Some exporters may look to reroute via alternative EU entry points, like Belgium or the Netherlands, where Regime 42 will continue. However, the Dover–Calais corridor remains the fastest, most reliable and most cost-efficient route into mainland Europe.

Diverting freight via Belgian or Dutch ports will inevitably add cost, extend transit times and risk congestion if volumes surge.

To ensure continuity, Metro can support exporters with three practical solutions:

  • T1 Transit Solution
    Goods can transit France under a T1, avoiding the need to pay French import VAT. Clearance takes place at the final EU destination, maintaining full route flexibility.
  • French VAT Registration and Returns
    For exporters wishing to continue using Dover–Calais without a transit procedure, Metro can arrange and manage French VAT registration and periodic returns.
  • Routing via alternative port pairs
    Where customers prefer to use Dutch or Belgian ports to retain Regime 42 benefits, Metro can support and coordinate these routings through established carrier and agent networks.

For many DDP exporters, the T1 transit route or French VAT registration, supported by Metro, will offer the best combination of compliance, speed and cost-efficiency.

Exporters should review their EU import arrangements early to ensure seamless operations ahead of January 2026.

Metro’s customs and compliance specialists are working with exporting customers to identify exposure, adapt procedures, and ensure every movement remains compliant and cost-efficient under the new rules.

EMAIL Andrew Smith, Managing Director, to discuss how we can help safeguard your European exports and keep your goods flowing smoothly through the transition.

Upcoming Metro Webinar: Essential Customs Changes for 2026

To help businesses prepare for these and other major regulatory shifts, Metro’s customs specialists will host a one-hour webinar in December.

Webinar Title

Avoid EU Border Disruption in 2026: The Key Customs Changes and How to Prepare Now

What We’ll Cover
A focused, practical review of:

  • ICS2 and the new GB ENS requirements
  • The end of Regime 42 in France: who is affected and what to do
  • French Douane ELO rules and their impact on all French port traffic
  • EUDR, CBAM and the UK’s expected approach
  • 2026 trade agreements and anticipated regulatory changes
  • Accessing CDS data free of charge
  • De minimis rule changes and the end of low-value relief
  • Compliance requirements for 2026 – what they mean in real terms

5 December @ 11:00 AM (1 hour) – CLICK TO BOOK

Exporters, importers and supply chain managers are strongly encouraged to attend. This session provides clarity on the border changes that will define 2026, and the actions businesses need to take now to stay compliant and competitive.

Continued Airfreight Growth Amid Emerging Challenges

Continued Airfreight Growth Amid Emerging Challenges

Global air freight markets have continued to post positive year-on-year growth through September and October, reinforced by stronger than anticipated build up to peak season volumes, but recent indicators point to a moderating pace and emerging challenges that merit close attention.

While recent data points to a slowdown in momentum, overall performance remains solid, underpinned by stable demand, improved belly capacity and expanding connectivity on Asia-Europe and Trans-Pacific routes.

September: Stronger Demand and Broad-Based Recovery

According to IATA’s latest data, global air cargo demand rose nearly 3% year-on-year in September, with international volumes up 3.2%. Capacity grew by roughly 3%, maintaining a healthy balance between supply and demand. The Asia-Pacific region led the expansion with a 6.8% increase in volumes, while Europe recorded a 2.5% rise and Africa posted double-digit growth.

Growth was especially strong on the Europe–Asia (up over 12%) and 10% up within Asia corridors, reflecting continued confidence among exporters and manufacturers leveraging airfreight for time-sensitive and high-value cargo. With global manufacturing activity steadying and cross-border trade recovering, September marked one of the most stable months of the year for international air logistics.

October: Consistent Throughput Amid Changing Conditions

Preliminary October data shows global air cargo volumes continuing to rise (around 4% higher than last year) indicating that demand remains robust heading into the traditional year-end peak. Industry analysts note that the pace of expansion is easing slightly as the market adjusts to higher passenger aircraft capacity and shifting economic conditions, but the overall picture remains positive.

Regional patterns are mixed: Asia continues to drive growth, supported by strong eCommerce flows and resilient intra-regional trade, while the transatlantic market remains steady. Importantly, network connectivity and schedule reliability have improved further, helping shippers achieve greater predictability and shorter transit times across major gateways.

Outlook: Stable, Predictable and Customer-Focused

While the pace of growth is slowing, there are reasons for optimism, including sustained peak season volumes, robust growth across key Asian and African corridors, and ongoing demand from eCommerce and modal shifts due to ocean shipping disruption.

The industry faces headwinds from weakening rate trends and demand imbalances, but steady year-on-year increases, even as momentum tapers, position air freight for a resilient conclusion to 2025.

Overall, air cargo remains on a positive trajectory, delivering growth despite moderating demand and evolving market challenges, with adaptability and strategic planning key for stakeholders navigating this dynamic landscape.

With demand steady and networks evolving, securing lift and predictability is all about smart planning. Metro’s air team proactively monitors capacity, fine-tunes routings, and works with trusted carrier partners to keep your cargo moving—reliably and on time.

Our platform adds real-time confidence with flight telemetry that delivers:

  • Live aircraft position and route mapping
  • Accurate departure/arrival confirmation
  • Time-stamped milestones, updated in real time

Plan with certainty, optimise inventory, and protect service levels—even when conditions change.

EMAIL Andrew Smith, Managing Director, to explore smarter, faster, and more resilient air-freight solutions powered by live data and long-standing carrier relationships.

When the Suez Canal Comes Back Online: Hidden Risks for Supply Chains

When the Suez Canal Comes Back Online: Hidden Risks for Supply Chains

With hopes rising of stabilising conflict in the Red Sea region, analysts are increasingly considering what it would mean if shipping lines resume full use of the Suez Canal route, and it’s not all good news. 

While the shorter route from Asia to Europe might seem like a logistical boon, the modelling suggests there are several material pitfalls ahead that shippers need to be aware of.

Since late 2023, container shipping lines operating on Asia–Europe and Asia–North America routes have avoided the Suez Canal, opting instead to sail around the Cape of Good Hope. This detour has extended transit times and absorbed a significant amount of global container capacity. According to Sea-Intelligence, a full and immediate return to the Suez Canal could release up to 2.1 million TEU of capacity, equivalent to around 6.5 % of the global fleet, back into circulation.

However, this sudden release would create a powerful surge of imports into Europe. Modelling suggests that if all carriers reverted to Suez routing at once, inbound volumes from Asia could double for a period of up to two weeks, pushing overall port handling demand almost 40 % higher than previous peaks. 

Even if the transition were more gradual, spread over six to eight weeks, European ports would still face throughput levels around 10 % above historical highs, straining terminal operations, inland connections, and storage capacity.

Key Areas of Risk

  • European Port Congestion and Hinterland Strain
    European ports are already under pressure. A sudden import surge could stretch terminal capacity, yard space, and inland networks, leading to delays, higher handling costs, and increased demurrage.
  • Short-Term Disruption Despite Long-Term Gains
    While the Suez route offers shorter transits and lower fuel use, the transition back is complex. Network structures have been rebuilt around the Cape, and reverting will require major re-engineering, with temporary schedule changes and service disruption.
  • Lingering Risk and Insurance Costs
    The security issues that diverted ships from Suez persist. Even after reopening, residual war-risk premiums and contingency measures could keep operating costs elevated.
  • Capacity Overshoot and Rate Pressure
    Releasing 2.1 million TEU of capacity is likely to swing supply–demand balance, pushing rates down and while shippers may benefit in the short-term, it is likely that carriers would take drastic action to protect margins.
  • Timing and Readiness
    The timing of a full return remains uncertain. Analysts stress that rushing back before networks and ports are ready could trigger fresh disruption rather than restoring stability.

Metro’s sea freight team are already modelling reopening scenarios to ensure capacity, routing, and contingency plans are ready when trade flows shift back through the Suez Canal. 

EMAIL Managing Director, Andrew Smith to arrange a strategic review of your shipping patterns, risk exposure, and options to protect service continuity and cost efficiency when routes realign.

U.S. Power Plays Shape Global Climate and Asian Trade Policy

U.S. Power Plays Shape Global Climate and Asian Trade Policy

The United States exerted its influence on two critical stages this month, by blocking consensus on global maritime climate regulation in London and sealing a series of trade pacts across Southeast Asia. 

At the International Maritime Organization (IMO) in London, U.S. pressure proved decisive in delaying adoption of a new net-zero emissions framework for shipping. After weeks of tense negotiation, the vote to postpone the measure by one year passed narrowly, with 57 in favour and 49 against, derailing what would have been the industry’s first global carbon-pricing mechanism.

The U.S. argued that the proposed levy on maritime emissions would raise consumer costs by around 10%, and threatened sanctions, visa restrictions, and port fees against nations voting in favour. Backed by Saudi Arabia, Russia, and Venezuela, the U.S. successfully persuaded several key flag states to withdraw support, effectively halting progress on a binding framework.

The decision has angered environmental groups and investors seeking a predictable framework for green fuel investment. Analysts now warn of fragmented regional carbon schemes, slower progress on decarbonisation, and renewed dominance of liquefied natural gas (LNG) as the default transition fuel.

However, the delay appears to have done little to dent the industry’s confidence. In the two weeks since the IMO vote, shipping lines have continued to place significant new-build orders, with the containership order-book ratio surpassing 33% of the global fleet for the first time since 2009. 

More orders are expected in the coming weeks as carriers push ahead with long-term fleet renewal plans, signalling sustained appetite for capacity growth despite regulatory uncertainty.

Trump’s Asia Tour: Trade Wins and Strategic Balancing

Even as Washington disrupted global climate diplomacy, President Donald Trump was securing new trade concessions across Southeast Asia. During his recent tour, the U.S. concluded four separate deals aimed at deepening regional economic ties and diversifying away from China.

  • Vietnam agreed to maintain 20% tariffs on U.S. goods but will move toward zero tariffs on selected products. The two countries will also cooperate on digital trade, export-control enforcement and anti-evasion measures.
  • Thailand retained its 19% tariff rate but committed to eliminate duties on 99% of U.S. goods, opening a broad range of consumer and industrial markets.
  • Malaysia and Cambodia went further, signing comprehensive reciprocal agreements that cap ad valorem tariffs at no more than 19%.

U.S.–China: A Cautious Thaw

Trump’s whirlwind tour culminates on Thursday 30 October with a long-awaited meeting with Chinese President Xi Jinping, their first in six years. The two leaders will meet on the sidelines of an Asia-Pacific summit, where negotiators have already framed a tentative agreement that would halt new U.S. tariffs and ease Chinese export controls on rare-earth minerals, which are essential for EVs, semiconductors and defence technology.

With U.S. trade agreements, compliance requirements, and sustainability regulations evolving fast, Metro can help you assess exposure and opportunities, maintaining compliance and resilient supply chains. 

EMAIL Andrew Smith, Managing Director, to review the latest policy impacts and ensure your business stays aligned with shifting global trade and environmental frameworks.