Jebel Ali

Middle East disruption continues

Jun 9, 2026 | , , , ,

The ongoing conflict across the Middle East continues to exert major pressure on global supply chains, with the effective closure of the Strait of Hormuz creating sustained disruption across ocean freight, air cargo, energy markets and regional transport networks.

Conditions across the region remain highly constrained as carriers, ports, airlines and logistics providers continue adapting to a freight environment shaped by rerouting, congestion, fuel volatility and severe operational bottlenecks.

The consequences are now being felt far beyond the Gulf itself, with delays, higher transport costs and capacity disruption rippling across Asia-Europe and intra-Asia supply chains.

Strait of Hormuz disruption keeps energy and shipping markets under pressure

The Strait of Hormuz remains the single most critical pressure point within the global logistics system.

With the waterway effectively closed to normal commercial operations and heavily impacted by military activity, shipping lines, tanker operators and insurers continue facing severe operational and financial challenges.

Insurance premiums remain exceptionally elevated, while tanker movements through the region are heavily restricted, delayed or rerouted entirely. The result is ongoing disruption to global energy flows and sustained volatility across bunker fuel, jet fuel and wider transport costs.

Ocean carriers continue absorbing longer routings, unpredictable schedules and significant operational inefficiencies, while air cargo operators are also facing increased costs and reduced network flexibility linked to airspace restrictions and fuel price volatility.

Regional port congestion spreads across alternative gateways

As carriers avoid the highest-risk areas, cargo flows are being redirected through alternative regional hubs, creating secondary congestion across ports outside the direct conflict zone.

Jebel Ali has seen vessel calls fall sharply as operators reduce exposure to the Gulf, while alternative hubs including Salalah, Colombo, Jeddah and Khor Fakkan are now experiencing growing transhipment pressure and vessel bunching.

At India’s Nhava Sheva (JNPA) port, unexpected surges in Middle East transhipment cargo have created substantial congestion, with vessel waiting times extending to several days and terminal operations struggling under rising yard density and inland transport pressure.

Truck queues, delayed container evacuation, rollover cargo and missed vessel connections are all becoming more common as ports attempt to absorb volumes displaced from traditional Gulf routings.

Red Sea land-bridge options come under strain

The traditional Red Sea land-bridge model into the Gulf is also becoming increasingly difficult to operate.

Congestion linked to diverted cargo volumes, seasonal Hajj-related demand and overloaded customs and port administration systems has significantly reduced operational reliability through Jeddah and other Red Sea gateways.

Carriers including Maersk and Hapag-Lloyd have now suspended certain cross-border carrier haulage solutions via Jeddah for Upper Gulf cargoes, instead shifting traffic towards Arabian Sea gateways including Salalah, Khor Fakkan and Sharjah.

Containers previously routed through Saudi Arabian land-bridge solutions are increasingly being transhipped through alternative ports before moving inland or reconnecting to feeder services into Gulf destinations.

While these workarounds help maintain cargo flow, they also introduce additional handling, longer transit times and greater operational complexity.

What this means for supply chains

The Middle East situation is becoming a structural supply chain challenge affecting routing decisions, carrier networks, fuel pricing, inventory planning and transport reliability across multiple regions.

Importers and exporters are now operating in an environment where flexibility, contingency planning and proactive routing management have become essential.

Alternative gateway strategies, inland transport options and earlier booking windows are all becoming increasingly important as traditional network assumptions continue to break down.

Metro helps customers overcome volatile market conditions through flexible routing strategies, multimodal transport solutions and proactive supply chain management across Asia, Europe and the Middle East.

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

steel in car manufacturing

UK steel tariff changes reshape import costs

Jun 9, 2026 | , , , , , , ,

The UK’s incoming steel trade measures are set to reshape import dynamics almost overnight, with significant cost and compliance implications for manufacturers, construction firms, and industrial supply chains.

From 1 July 2026, the UK will replace its current steel safeguards with a far more restrictive tariff rate quota (TRQ) system. Tariff-free quotas will be cut by around 60% overall, with some key product categories seeing reductions of up to 90%. At the same time, the duty applied to volumes above quota will double to 50%.

The measures apply across approximately 20 steel product categories, including flat products, bars, and pipes, and notably apply regardless of origin, including imports from EU and other trade agreement partners.

While positioned as a move to protect domestic steel production, the reality for importers is a much tighter and more punitive operating environment.

Why this matters for importers

For UK businesses reliant on imported steel, including automotive, machinery, construction, and engineering, the changes introduce both immediate cost risk and ongoing supply uncertainty.

The most significant shift is how quickly quotas are expected to be exhausted. With volumes sharply reduced, many categories could run out within days or weeks of each quarter opening, rather than lasting the full period. Once quotas are filled, any additional imports will face a 50% duty, creating a substantial and potentially unmanageable cost increase.

At the same time, domestic supply is unlikely to fill the gap. Many manufacturers rely on specific grades or forms of steel that are not readily available in the UK, meaning substitution is not always viable.

Rising costs and supply chain pressure

Industry bodies are already warning of widespread disruption. Higher input costs are expected to ripple through supply chains, increasing production costs and reducing competitiveness for UK manufacturers.

There is also growing concern around material availability. In sectors such as construction, limited domestic capacity combined with tighter import restrictions could lead to shortages of key products, delaying projects and adding further cost pressure.

For exporters, the impact is twofold: higher input costs at home and increased competition from overseas producers who are not subject to the same tariff burden.

Operational complexity increases

Beyond cost, the new regime introduces a more complex and time-sensitive import process.

The TRQ system will continue to operate on a first-come, first-served basis, with quarterly allocations managed through HMRC. This puts significant pressure on timing, both in terms of shipment planning and customs entry.

If a shipment is declared after a quota has been exhausted, it will immediately fall into the higher duty bracket, regardless of when it was shipped. This makes accurate forecasting, documentation, and coordination between supply chain partners critical.

Importers will need to pay close attention to:

  • Entry timing versus quota availability.
  • Correct tariff classification and documentation.
  • Coordination between forwarders, brokers, and internal teams.
  • Monitoring quota usage in near real time.

Even small missteps could result in substantial, avoidable duty exposure.

Behavioural shifts already underway

In response, many importers are already adjusting their strategies. There are signs of front-loading shipments ahead of the July deadline, alongside contingency planning based on higher landed cost scenarios.

Some businesses are modelling worst-case pricing as a baseline, while others are reviewing sourcing strategies or considering inventory increases to mitigate risk.

However, these are short-term responses. Longer term, the market may see shifts in sourcing patterns, pricing structures, and even production locations if cost pressures 

persist.

With additional measures such as the UK’s Carbon Border Adjustment Mechanism (CBAM) due to follow in 2027, importers face a longer-term trajectory of rising complexity and cost.

The new steel regime will penalise those who don’t plan ahead and prepare. Metro’s customs and compliance experts are already supporting clients with quota planning, tariff classification, and import strategy to minimise risk and control costs.

For tailored guidance on how these changes will affect your business, EMAIL Andy Fitchett, Metro’s Head of Customs & Compliance.

Rotterdam sunset

Port congestion spreads as delays ripple through global supply chains

Jun 9, 2026 | , , , , , , , , , , , , , , , ,

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

Jun 9, 2026 | , , , , , ,

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.

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