Rotterdam sunset

Port congestion spreads as delays ripple through global supply chains

Port congestion in North Europe and East Asia is increasingly a two-ended problem: weather and capacity issues at origin delay departures, and when those same vessels finally reach port in Europe, they miss their planned berths and are forced to wait again, magnifying disruption throughout supply chains.

Congestion across key container gateways in Asia and Northern Europe is once again creating significant disruption with delays at Shanghai, Ningbo, Rotterdam and Antwerp increasingly feeding into one another and extending transit uncertainty across the entire east-west trade.

While individual delays at a single port are not unusual during peak season, the current challenge is the growing “cascade effect” developing across vessel schedules, inland transport networks and terminal operations.

In simple terms, disruption at one end of the trade lane is now directly increasing congestion at the other.

Weather disruption and vessel bunching hit China exports

Shanghai and Ningbo are both experiencing elevated congestion levels as heavy seasonal demand combines with poor weather, vessel bunching and continued schedule disruption linked to longer Cape routings.

Dense fog and adverse weather conditions around China’s east coast have already caused berth delays ranging from two to seven days at some Shanghai terminals, while Ningbo is also experiencing extended waiting times and increasing yard density pressure.

The knock-on effect quickly spreads through carrier schedules.

When vessels are delayed departing China, they frequently miss planned arrival windows into Northern Europe. Once that happens, carriers can lose their allocated berth slots, forcing vessels to wait offshore for new availability.

That creates a compounding cycle where both origin and destination ports become congested simultaneously.

Container equipment shortages are also worsening across major Asian export hubs as carriers struggle to reposition empty containers back into loading ports quickly enough to meet demand.

Rotterdam and Antwerp under mounting pressure

Northern Europe’s largest container hubs are now facing growing operational strain as delayed vessel arrivals collide with already congested inland transport networks.

Rotterdam and Antwerp are both reporting severe inland barge disruption, with waiting times regularly stretching towards four days. Yard utilisation remains extremely high across several terminals, while reduced crane availability, feeder delays and weather-related stoppages continue limiting operational fluidity.

Strong winds across Northern Europe have added further intermittent disruption, particularly at Antwerp, where terminals are struggling with vessel bunching and rising container dwell times.

The challenge extends far beyond the quayside.

As terminals prioritise delayed deep-sea vessels, inland barges often face secondary status within the operational flow, creating additional delays for hinterland cargo movement. In some cases, containers are remaining on terminals significantly longer than operationally ideal, increasing storage pressure and reducing yard efficiency.

Road and rail networks are also coming under increasing pressure as shippers divert cargo away from delayed barge services to avoid demurrage, detention and missed supply chain deadlines.

Inland transport disruption adds to the congestion cycle

The wider Northern European inland network is also becoming increasingly fragile.

Rail disruption across Germany, including infrastructure works, route closures and operational bottlenecks around Hamburg, is further complicating cargo flows into and out of the ports. Delayed trains, missed vessel connections and network overload are creating additional uncertainty for importers trying to maintain reliable inventory flows during an already volatile peak season environment.

This means delays are no longer isolated to one transport mode.

A weather delay in China can now create missed vessel berthing windows in Europe, which then impacts inland barges, rail schedules, feeder services and final cargo delivery timelines across multiple countries.

What this means for shippers

The current market reinforces how interconnected global container networks have become.

Longer transit times around the Cape of Good Hope have already reduced schedule reliability, while peak season demand and equipment shortages are tightening operational flexibility across both Asia and Europe.

For shippers, this creates growing importance around earlier booking windows, flexible inland transport planning and close coordination across origin, ocean and destination operations.

Importers moving time-sensitive cargo may increasingly need contingency planning around rail, road and barge options as congestion conditions continue evolving across Northern Europe during the summer peak period.

Metro combines global ocean freight expertise, proactive shipment management and integrated inland transport coordination to help customers minimise disruption and maintain cargo flow during volatile market conditions.

To discuss your supply chain planning, routing options or congestion mitigation strategies, EMAIL Managing Director Andrew Smith.

USMCA

USMCA renewal talks critical for North American manufacturing supply chains

The United States-Mexico-Canada Agreement (USMCA) is the legal and operational backbone of a $31 trillion North American trading bloc, and its renewal process is a live strategic risk factor for manufacturers and automotive brands active in the region.

Renewal negotiations are one of the most strategically important issues facing North American manufacturers, automotive brands and industrial supply chains.

While the agreement itself is not due to expire immediately, the failure to secure a straightforward 16-year renewal by the July 2026 review milestone is creating growing uncertainty across sectors heavily reliant on integrated US, Mexican and Canadian manufacturing operations.

The negotiations are particularly important for automotive, machinery, steel, aluminium and advanced manufacturing supply chains that have spent years restructuring production around the USMCA framework.

Why USMCA matters

The USMCA effectively underpins North America’s position as a highly integrated manufacturing bloc, supporting nearly $2 trillion in annual trade and deeply interconnected cross-border production networks.

The agreement provides the legal and operational framework that allows manufacturers to build complex regional supply chains with long-term investment certainty, streamlined customs processes and unified rules governing trade across all three countries.

That stability has become increasingly valuable as global manufacturers continue reducing dependence on long-distance Asian supply chains and accelerating near-shoring strategies closer to North American demand centres.

Mexico, in particular, has become a major beneficiary of this shift, offering shorter transit times, lower logistics risk and strong manufacturing integration with US production.

Automotive supply chains remain at the centre of negotiations

USMCA rules already require 75% of vehicle content to originate within North America for tariff-free treatment, helping drive major investment into regional automotive manufacturing and supplier networks.

Modern automotive production across North America is now deeply interconnected, with components often crossing borders multiple times before final vehicle assembly.

A single component may be stamped in Mexico, machined in the US and assembled into a finished vehicle in Canada or back in Mexico. That level of integration means even relatively small tariff or rules-of-origin changes can have significant operational and commercial consequences.

The Trump administration is now reportedly pushing for even higher US content requirements within vehicles as part of the renewal process, alongside broader efforts to bring more manufacturing activity back into the United States.

At the same time, steel, aluminium and automotive tariffs remain major areas of disagreement between the three countries.

Negotiations becoming more complex and politically sensitive

Formal negotiations between the US and Mexico are now under way, while Canada is still waiting to enter full trilateral discussions with Washington.

Current expectations are that the July review deadline will pass without a full agreement, triggering an extended review and negotiation period rather than an immediate collapse of the agreement itself.

In practical terms, USMCA would remain operational, but uncertainty around future rules, tariffs and investment conditions could persist for months or even years.

That uncertainty matters.

Manufacturers making long-term investment decisions around factories, tooling, supplier sourcing and critical minerals need confidence that North American trade rules will remain stable over the life of those investments.

The White House is also increasingly using separate bilateral negotiations alongside the formal USMCA review process, creating additional complexity around tariffs, automotive rules, steel, aluminium, labour standards and critical minerals.

For many manufacturers, the agreement is now viewed not simply as a trade deal, but as a strategic foundation for North American industrial resilience.

What this means for manufacturers and importers

For businesses operating across North America, the current environment reinforces the importance of supply chain flexibility, customs planning and close monitoring of trade policy developments.

Automotive, industrial and manufacturing sectors remain particularly exposed to any changes involving rules of origin, tariffs, customs procedures or regional content requirements.

While the direction of negotiations remains uncertain, all three governments continue publicly supporting the importance of maintaining a trilateral North American trade structure.

The challenge now is whether that shared strategic interest can overcome increasingly difficult political and economic negotiations.

Metro helps customers manage complex cross-border logistics, customs compliance and North American supply chain strategies across the US, Mexico and Canada.

To discuss your North American logistics requirements or USMCA-related supply chain planning, EMAIL Managing Director Andrew Smith.

container lorry queue

Capacity tightens and rates surge as peak season pressure builds

Asia–Europe and transpacific market conditions have shifted sharply in recent weeks, as strong demand tightens available space and enables carriers to push through higher spot rates and surcharges, even on shipments moving under long-term contracts.

Recent index data shows steady week-on-week gains, but forward indicators suggest a much steeper rise ahead. Pricing for early June shipments is already high and market signals indicate that rates could climb as high as $6,000–$7,000 per 40ft in the coming weeks, particularly as space tightens in the second half of June.

This demand spike is being driven by large-volume shippers accelerating shipments ahead of new bunker adjustment factors (BAFs) due to take effect from 1 July. These revised fuel charges are expected to increase significantly, prompting a surge in June volumes that is now placing further strain on capacity.

At the same time, carriers are increasing peak season surcharges (PSS) and signalling ongoing reviews. Initial increases are already being implemented in early June, with further upward revisions likely through the summer. Importantly, these surcharges are not being capped, creating continued upward pressure.

On the transpacific, the situation is following a similar trajectory. Capacity reductions, most notably the withdrawal of a key Asia–US East Coast service, have tightened supply, while carriers are taking a more aggressive stance on rate increases. Although recent index movements have been moderate, multiple general rate increases (GRIs) have been announced for June, pointing to a much firmer market ahead.

Contract conditions are also shifting. Previously available rate offers are being withdrawn or replaced with higher-priced agreements, and in some cases, revised terms are becoming commercially unviable. Across both major east–west trades, current expectations are that elevated rate levels and constrained space will persist through June and July, with the potential to extend into August.

For shippers, this creates a highly compressed and competitive freight environment. Securing space is becoming increasingly dependent on rate acceptance, and delays in booking or pricing decisions are likely to result in higher costs or missed sailings.

Metro’s Advice

If you have upcoming shipments, early planning and rapid booking decisions are critical.

  • Expect continued upward pressure on both spot and contract rates through June and into July
  • Allow for additional surcharges, particularly PSS and revised fuel costs
  • Plan for reduced flexibility, with limited space availability on key sailings
  • Anticipate further volatility as carriers adjust pricing in line with demand

Metro’s teams are actively monitoring capacity, pricing movements, and carrier strategies to secure the best possible options for our customers.

Contact your Metro account manager today to review your shipping forecast, secure space, and minimise cost exposure in an increasingly constrained market.

This story was first reported in The Loadstar and can be viewed HERE

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U.S. Supply Chains Grapple Cost Pressures and Uncertainty

Heading into the second half of 2026 shippers face, a politically charged USMCA review, an early tightening on the trans‑Pacific, and war‑driven fuel costs pushing up inland transport prices across North America. 

Together, they are rewriting the assumptions many companies use for peak‑season planning, pricing and inland network design.

USMCA stability at stake for North American production

The United States–Mexico–Canada Agreement (USMCA) reaches its first scheduled “joint review” on 1 July 2026, six years after it took effect. The three governments must decide whether to confirm the deal through 2042, seek adjustments, or signal opposition that could trigger renegotiation and, in the worst case, open the door to an eventual sunset in 2036 if no resolution is found.

Manufacturing across North America, and especially in the automotive sector, has a lot riding on the outcome. Automotive trade accounts for roughly 20–25% of total USMCA trade flows, making it the single largest sectorial user of the agreement. Since 2020, higher regional content requirements and labour‑value rules have already reshaped sourcing patterns for OEMs and tier suppliers, driving more production and component sourcing into Mexico, the U.S. and Canada.

Industry groups on all sides of the border are pushing for a stable, growth‑oriented review that preserves tariff‑free access and gives long‑term visibility to investors. At the same time, policymakers are signalling that the review will not be a formality. Areas likely to come under scrutiny include automotive rules of origin and tracing, enforcement of labour and environmental commitments, energy and state‑owned enterprise disputes, digital trade and data rules, and the role of Chinese investment and components in North American supply chains.

For U.S. manufacturers and importers, this means the next 12–18 months are a critical window to:

  • Verify that products truly qualify under current USMCA rules and identify any borderline cases.
  • Model how tighter regional content or new tracing requirements could change compliance status and cost.
  • Stress‑test footprint and sourcing decisions, particularly where there is high China content flowing via Mexico or Canada into the U.S.

Trans‑Pacific signs of an early peak

Eastbound trans‑Pacific trades are already showing signs of an early peak‑season, with container spot rates from Asia to the U.S. west and east coasts climbing sharply on the back of May general rate increases, as carriers tighten capacity and push through surcharges.

Recent data shows:

  • Spot rates from major South China ports to the U.S. west coast rising almost 100% on levels from only weeks earlier.
  • Asia–U.S. east coast spot rates climbing by 50–60% over a similar period, with some indices even higher.
  • Carriers rolling out peak season surcharges and emergency fuel surcharges ahead of the usual schedule, with higher amounts signalled for late June and 1 July.

Several dynamics are driving this early tightening:

  • Importers are front‑loading orders to get ahead of further cost increases later in the year, including potential tariff changes and bunker‑linked adjustments.
  • Vessel diversions around southern Africa to avoid Red Sea and Gulf of Aden risks, coupled with congestion at some Asian load ports, are absorbing capacity and disrupting schedules.
  • Capacity additions have lagged demand on key lanes, and carriers are using blank sailings and service adjustments to keep utilisation high.

We expect some rate relief later in the summer if additional capacity returns and front‑loaded volumes drop off, but the near‑term picture is one of elevated spot rates and tight space as peak‑season volumes converge with constrained supply.

Trucking and inland costs rise on fuel‑driven inflation

War‑driven fuel prices are pushing trucking and intermodal costs sharply higher, even before demand has fully recovered.

Since the escalation of conflict involving Iran, U.S. retail diesel prices have moved from just under USD 4 per gallon to around USD 5.60 per gallon on average, with some regions significantly higher. This jump has fed directly into trucking Producer Price Index (PPI) measures:

  • Truckload and LTL PPIs have risen markedly in recent months, reversing a multi‑year period of freight deflation;
  • Spot truckload rates on long‑haul lanes have climbed to their highest levels since 2022, with average per‑mile prices up more than 25% year‑on‑year in some benchmarks;
  • Higher fuel and capacity discipline are also starting to pull contract rates up, with increases spreading from truckload into LTL and intermodal.

It is worth noting that these increases are being driven largely by supply‑side constraints, reduced capacity, higher fuel costs and more disciplined carrier pricing, rather than by booming freight demand. For shippers, that means transport inflation can persist even if volumes remain only modestly above 2025 levels.

Metro’s CEO Grant Liddell and Managing Director Andrew Smith will be visiting U.S. offices and customers next week, to review operations and discuss these challenges on the ground, to help shape next‑step plans.

If you’d like to sense‑check your outlook for the second half of 2026 – from USMCA exposure and sourcing footprints to peak‑season capacity and inland cost pressures you can EMAIL Andrew directly or connect with the Metro Global USA team.