European roadmap to recovery

ICS2 and ELO: Preparing for the Next Phase of EU Border Compliance

As of 1st April, the European Union’s Import Control System 2 (ICS2) entered its final implementation phase; a critical milestone for businesses moving goods into the EU. 

Designed to enhance the safety and security of EU-bound shipments, ICS2 is now live across all transport modes, including road and rail, in addition to air, maritime, and inland waterways.

Import Control System 2

ICS2 introduces a standardised, data-driven pre-arrival notification for goods entering the EU. The system mandates the submission of accurate and complete Entry Summary Declarations (ENS) before arrival at the EU’s external border. These declarations allow customs authorities to perform detailed risk assessments and target high-risk consignments before they enter the supply chain.

This not only improves customs enforcement but supports a more secure and streamlined trade environment.

This latest phase introduces two key updates:

  1. 1. Mandatory House Bill Filings for Surface Containerised Movements
    This update predominantly affects sea freight and applies to:

    • Goods moving to the EU
    • In-transit shipments through the EU
    • Freight Remaining on Board (FROB)
  1. 2. Live ICS2 Filing for Road and Rail Movements
    Both accompanied and unaccompanied trailers now fall under ICS2’s scope. Businesses must submit ENS data 1 to 2 hours before EU arrival, depending on the transport type. Timing is critical — incomplete or late submissions could lead to delays, detentions, or even denied entry.

The Enveloppe Logistique Obligatoire

As introduced during our most recent webinar, ELO is not to be confused with the 70s rock band, it represents a major evolution in French customs procedures.

ELO is an extension of France’s import/export pairing process. Under the new system, every crossing from GB into France will require a declaration barcode, which also supports onward movement into the remaining 27 EU countries. The goal is to digitise and streamline freight verification, with a single ELO envelope covering the full logistics trail.

Metro’s Briefing Webinar

On Friday, 28th March, Metro hosted its second industry webinar, focusing on the latest regulatory developments. The webinar audience were briefed by our experts on the latest regulatory developments, including ICS2 declarations, the introduction of ELO, updates and the Carbon Border Adjustment Mechanism (CBAM). 

They were also updated on changes to the UK Customs Declaration Service (CDS) for exports, evolving trade agreements such as the CPTPP, and implications of the Windsor Framework for Northern Ireland.

The session aimed to ensure attendees are not just compliant but well-positioned to optimise their supply chain strategies in this evolving regulatory landscape.

Stay connected with Metro for expert-led insights, upcoming webinars, and on-the-ground support to navigate new regulatory frameworks confidently. EMAIL Andy Fitchett to register your interest.

Bridge on ship

Sea Freight Market Review

The global ocean freight market is undergoing a period of transition in 2025, influenced by regulatory changes, shifting trade patterns, and evolving carrier alliances. While demand remains strong in key regions, rate volatility persists due to supply chain disruptions and excess capacity.

The ocean freight sector is experiencing considerable adjustments as carriers adapt to regulatory and economic shifts. The EU ETS expansion now covers 70% of maritime emissions, leading to higher surcharges and operational costs for carriers.

Supply/Demand
Capacity growth is projected to slow to 5% in 2025 after record vessel deliveries in 2024. However, supply chain disruptions persist due to global port congestion and ongoing Red Sea diversions are soaking up excess capacity.

The restructuring of major shipping alliances is further shaping the industry landscape, with the dissolution of 2M, the formation of the Premier Alliance by THE Alliance, and the launch of Gemini Cooperation in February 2025.

Proforma scheduled liner capacity on the Asia-North Europe trade is set to be reduced by around 11% once the transition to the new shipping alliance set-up is complete. The combined weekly capacity drop of some 28,000 TEU equates to a total reduction of 221,000 TEU across all services. However, the number of individual weekly sailings between Asia and North Europe is expected to increase from 26 (under the previous alliances and standalone services) to 28, potentially improving frequency and flexibility for shippers.

Global port congestion remains a pressing issue, particularly in China and vessel utilisation remains high, with only 0.2% of the global liner fleet currently idle. The industry is also witnessing an increase in blank sailings, with 47 announced through mid-April, affecting Transpacific and Asia-Europe trade routes. The Transpacific market, in particular, is experiencing notable disruptions, with 43% of blank sailings concentrated in this corridor.

Expectations that Red Sea diversions would ease, returning an estimated 2 million TEU to global circulation, were dampened over the weekend following missile exchanges between the US and Yemen’s Houthi rebels. MSC CEO Soren Toft stated, “Suez simply isn’t safe to transit at the moment, and there’s no immediate prospect of a return.” This continued instability may prolong disruptions and return pressure on rates.

Market
Meanwhile, the Shanghai Containerised Freight Index (SCFI) has dropped 17% since January and despite strong cargo demand in select regions, the market remains vulnerable to downward pricing pressures.

Demand remains resilient but uneven, with North America and India seeing stronger performance, whereas Europe’s slower economic growth is weighing on export activity. Chinese exports have exceeded expectations, driven in part by early shipments ahead of potential tariff adjustments.

The Drewry World Container Index (WCI) has reached its lowest level since January 2024 and while rates are below their pandemic-era peaks they are still 79% higher than pre-pandemic averages from 2019.

At Metro, our fixed-rate agreements on popular shipping routes provide a practical safeguard against rate volatility, offering predictable costs for effective budgeting. Whether you’re managing high-volume trade lanes or seeking greater stability for your supply chain, our tailored solutions can help you thrive in 2025.

To discover how Metro can strengthen your business and provide peace of mind, EMAIL our Managing Director, Andy Smith, today.

LAX 1440x1080 1

Air Freight Market Review

The global air freight market in February and early March reflected moderate year-on-year (YoY) growth, with total worldwide tonnages up 5% in February and 2% higher YoY in early March.

However, market dynamics remain volatile, influenced by shifting trade policies, geopolitical factors, and eCommerce trends.

Asia-Europe air cargo showed strong demand recovery in March, with tonnages rising 4% week-on-week (WoW) and while average spot rates softened they remain 20% higher YoY. Meanwhile, transatlantic routes saw weaker demand from Europe, with London Heathrow and Frankfurt spot rates declining amid softer outbound trade.

Market Situation
Global air cargo tonnages rose 5% YoY in February, supported by an 8% surge from Asia Pacific and a 4% rise in North America and Europe. However, Middle East & South Asia (MESA) volumes declined by 6%, reflecting last year’s Red Sea-driven demand spike.

By early March (Week 10), Asia-Europe trade saw significant WoW volume gains:

  • China to Europe tonnages increased by 5%
  • Hong Kong to Europe volumes grew by 6%
  • Japan & Taiwan to Europe rose by 7%
  • Thailand & Singapore to Europe surged by 9%

Despite these volume increases, average spot price indices on Asia-Europe lanes declined by 3%. However, YoY spot rates remain significantly higher (+20%), supported by China (+14%), Hong Kong (+22%), Japan (+19%), and Thailand (+38%).

Global air cargo markets remained relatively stable through February and early March, with weekly demand fluctuations balancing out across key regions.

  • Asia-Europe: Despite a 4% WoW tonnage rebound in Week 10, rates dipped as supply-demand balances shifted.
  • Transatlantic (Europe to USA): Weaker outbound demand put spot rates under pressure at London Heathrow and Frankfurt.
  • Middle East to Europe: Demand weakened with Dubai-to-Europe tonnages falling 15% WoW.

Global air freight rates remained 6% higher YoY, though Asia-Europe pricing showed a mixed trend, with falls on all the major trade lanes, though rates remain significantly higher than last year.

  • Asia-Europe remains 20% higher YoY.
  • China to Europe still stands 14% higher YoY.
  • Hong Kong to Europe are up 22% YoY.

The Asia-Europe air cargo market rebounded in early March, with tonnage gains but slightly softer rates as market conditions adjusted. Meanwhile, transatlantic routes saw demand weakness, leading to rate declines from major European hubs. Moving forward, trade policies, geopolitical shifts, and capacity adjustments will continue to influence global air cargo pricing and volumes.

In a volatile air cargo market, securing capacity and competitive rates is critical. Metro’s air freight, charter, and sea/air solutions ensure your shipments move efficiently, even on the busiest trade lanes. With block space agreements (BSA) and capacity purchase agreements (CPA) in place, we guarantee space and stable pricing when you need it most.

Whether you’re shipping urgent, high-value, or sensitive cargo, our global expertise and strategic carrier partnerships keep your supply chain running on time and within budget.

EMAIL Elliot Carlile, Operations Director, today to explore how Metro’s air freight solutions can optimise your logistics.

strike at port

Labour disputes at European ports disrupt container shipping

Trade union action across major European ports, particularly in Rotterdam and France, are causing significant disruptions to container shipping, exacerbating existing supply chain challenges.

Strikes at Rotterdam’s Delta II terminal and ongoing industrial action at French ports have created congestion, delays, and logistical bottlenecks, prompting carriers to reroute vessels and seek alternative solutions.

Rotterdam turmoil and ripple effects
Contract negotiations that began in November have stalled, while the FNV Havens and CNV unions have been locked in dispute with employers since the second half of last year over port automation concerns. Dockworkers have been staging intermittent strikes that have severely impacted deep-sea vessel operations, feeder ship schedules, and inland-bound cargo movements. The situation has escalated with calls for solidarity action across Europe, urging other ports not to handle diverted vessels. While no widespread solidarity strikes have been reported, shipping lines remain on high alert, monitoring developments and adjusting vessel rotations as necessary.

Congestion at Rotterdam has intensified due to a combination of adverse weather, holiday-related backlogs, and surging cargo volumes from Asia. As a result, vessels are facing extended waiting times, with some opting to bypass the port altogether. The container yard capacity is nearing full utilisation, and precautionary measures, such as limiting empty container acceptance, have been implemented to manage the strain.

French port strikes deepen crisis
Meanwhile, industrial action at French ports is compounding the disruption. Dockworkers are protesting against pension reforms, with frequent work stoppages and a series of strikes planned throughout March. These actions have significantly impacted cargo handling operations at key ports, including Le Havre and Marseille-Fos, leading to increased transport costs and supply chain strain for businesses dependent on timely shipments.

The business community has voiced concerns over the economic fallout, citing rising supply chain costs, shipment delays, and a decline in sales due to the port closures. Calls for government intervention and a coordinated public-private response have been made in an effort to mitigate the impact and prevent further damage to trade and industry.

Wider European impact
As Rotterdam and French ports struggle with ongoing disruptions, other European hubs, such as Antwerp-Bruges, are facing additional pressure. With cargo diversions increasing, terminal congestion at Antwerp has reached critical levels, forcing operators to implement emergency measures. 

Import deliveries are being prioritised over exports, and yard space constraints are leading to restrictions on transshipment volumes. Barge and feeder operations are experiencing significant delays, further straining inland logistics networks.

With no immediate resolution in sight for either the Rotterdam or French port disputes, container carriers are bracing for continued volatility.

With escalating labour disputes at key European ports, including Rotterdam and France, container shipping is facing increasing delays, congestion, and logistical challenges. At Metro, we have contingency plans in place to bypass affected ports, leveraging alternative routes and entry points to keep your cargo moving.

To minimise disruptions, we encourage you to share your shipping forecasts as early as possible so we can proactively mitigate potential issues.

For tailored solutions and expert guidance on protecting your supply chain, 

EMAIL Andrew Smith, Managing Director, today.