container haulage

Middle East situation triggers emergency fuel surcharges

The continuing disruption in the Middle East is beginning to affect container shipping costs globally, with carriers introducing emergency fuel surcharges and rate increases across several major trade lanes.

Global bunker prices have surged in recent weeks, with very low sulphur fuel oil (VLSFO) rising by almost 40% since the initial military strikes on Iran. The increase reflects tightening oil supply and heightened market uncertainty linked to the closure of key regional shipping corridors.

The Middle East is a major exporter of fuel oil and accounts for around 35% of the fuel imported into Singapore, the world’s largest bunkering hub. As supply concerns intensify, fuel costs are expected to continue influencing freight pricing in the coming weeks.

Several major container carriers have already moved to pass these increased costs through to customers.

MSC has announced an emergency fuel surcharge for cargo moving from the Mediterranean and Black Sea, while CMA CGM will introduce its own fuel surcharge across its services, with both taking effect in the coming days.

These measures are likely to be followed by other carriers as the industry responds to rising bunker costs.

Freight markets beginning to react

Ocean freight markets have already begun to respond to the combination of higher fuel prices, geopolitical uncertainty and continued disruption across Middle Eastern shipping routes.

Recent spot rate indices on the Asia–Europe and Asia–Mediterranean trades show container rates rising week-on-week. Across the transpacific, rates to the US West Coast have surged sharply, while prices to the US East Coast have also moved higher, though to a lesser extent.

Carriers are also signalling further increases across Asia–Europe services from mid-March as they respond to higher operating costs and ongoing uncertainty around the reopening of Suez Canal routings.

Some cargo flows normally destined for Gulf markets are also being redirected via alternative land and sea corridors, including inland routes through Turkey, which may influence capacity utilisation and pricing across neighbouring trade lanes.

UK road transport also feeling fuel pressure

The increase in global oil prices is also beginning to affect UK road transport costs, which form a key part of inland supply chains.

The Road Haulage Association has called for urgent discussions with the UK government after a sharp rise in diesel prices, warning that hauliers are facing rapidly increasing operating costs.

As a result, many UK merchant hauliers are introducing or increasing fuel surcharges to reflect the higher diesel costs of container collection and positioning. This means that the impact of rising fuel prices is now being felt not only in international shipping but also across domestic transport and distribution.

What this means for shippers

The combination of rising bunker costs, emergency surcharges and higher road fuel prices is likely to increase logistics costs across several parts of the supply chain in the short term.

Metro is monitoring carrier announcements, bunker price movements and transport developments closely and will continue to update customers as the situation evolves.

If you would like to discuss how these developments may affect your shipments or explore alternative routing strategies, please contact your Metro representative or EMAIL Managing Director Andrew Smith.

shopping

EU insights for ambitious UK retailers and brands

As global trade patterns shift and US tariffs reshape export economics, many UK fashion brands are re-evaluating where growth will come from next.

For an increasing number, the answer is closer to home. The European Union — a £250bn clothing market — is once again becoming a strategic priority for scalable, lower-risk international expansion.

At Metro, we are seeing a clear trend: brands that previously focused on the US are now actively re-establishing or expanding EU operations. The commercial logic is compelling, but success depends on understanding the operational realities.

Europe makes strategic sense again

Under the UK-EU Trade and Co-operation Agreement, most qualifying UK goods can enter the EU tariff-free, provided rules of origin are met.

Compared with elevated US baseline tariffs and longer transatlantic lead times, the EU offers:

  • Shorter transit times
  • Lower freight costs
  • Established e-commerce and wholesale networks
  • Cultural and style alignment
  • A large, affluent consumer base

However, while tariffs may be reduced, compliance complexity remains.

The EU opportunity is real — but it is not frictionless. Brands need to approach it strategically, with proper customs planning, VAT management and logistics alignment from day one.

Choosing your route to market

There is no single entry model. Most successful brands adopt a hybrid approach.

Marketplace Partnerships

Many UK retailers are leveraging major EU marketplaces to accelerate scale.

Benefits:

  • Immediate access to multiple markets
  • Localised checkout and VAT handling
  • Established logistics networks
  • Faster delivery and returns

However, marketplace integration is not a silver bullet. Service charges, data integration, and margin considerations must be assessed carefully.

Establishing an EU entity

Setting up a legal entity in an EU member state has become more streamlined post-Brexit.

While it requires tax and legal advice, having an EU-based operation can:

  • Simplify VAT registration
  • Improve customer experience
  • Reduce cross-border friction
  • Enable more seamless returns management

Many exporters continue to route EU goods via the Netherlands due to infrastructure strength and customs efficiency.

Wholesale & distribution

Wholesale partnerships remain a powerful growth lever.

Brands are:

  • Partnering with department stores and independents
  • Appointing local distributors in key territories
  • Entering market-by-market rather than pan-EU immediately

Europe is not homogenous. Germany is not Spain. Italy is not Poland.

Localised strategy is essential.

De-minimis changes & customs evolution

The EU is ending its €150 de minimis duty exemption.

In 2024 alone, 4.6 billion low-value consignments entered the EU under this regime. 

Regulatory tightening aims to improve compliance and level competition.

Key implications:

  • Additional handling fees likely
  • Greater customs scrutiny
  • VAT management changes
  • Phasing out of the Import One Stop Shop (IOSS)
  • Introduction of the EU Customs Data Hub (from 2028)

Regulatory tightening increases compliance cost in the short term, but it also creates opportunity. Brands that invest in structured customs processes now will gain competitive advantage as enforcement strengthens.

Ship from UK or hold EU stock?

Many retailers initially ship EU orders from their UK hub, often supported by limited EU warehousing.

As volumes grow, models evolve toward:

  • EU-based fulfilment centres
  • Regional distribution capability
  • Consolidated inventory hubs
  • Faster returns processing

Efficient third-party logistics support is critical, particularly for managing VAT, customs documentation, and reverse logistics.

Sustainability & regulatory compliance

The EU remains at the forefront of sustainability regulation.

Fashion exporters must prepare for:

  • Ecodesign for Sustainable Products Regulation (ESPR)
  • Digital product passports
  • Product Environmental Footprint (PEF) requirements

Sustainability compliance in the EU is no longer a branding choice, it is market access infrastructure.

Brands that build traceability into supply chains now will be better positioned globally as similar standards emerge elsewhere.

Long-term thinking wins

Recent tariff volatility has reinforced one lesson: international expansion requires a long-term horizon.

Successful EU strategies typically:

  • Combine DTC, wholesale and marketplace channels
  • Phase entry by priority markets
  • Invest in compliance early
  • Build local partnerships
  • Use logistics as a competitive advantage

Europe’s scale, proximity and consumer alignment make it a logical next growth chapter for UK fashion brands.

But operational detail determines commercial success.

Final thoughts

The EU is not a return to pre-Brexit simplicity, but it is a structured, opportunity-rich market for brands willing to approach it strategically.

Entering Europe successfully isn’t about finding demand — demand is there. Metro’s experts can help you design the right logistics, compliance and localisation model to serve it efficiently.

For UK retailers ready to expand, Europe is no longer a fallback market.

It is becoming the priority again.

To learn about our EU-wide logistics, compliance and localisation services, and how we can help you grow your business in the EU with confidence, please EMAIL our Managing Director Andrew Smith.

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Balance tilting towards UK hauliers

After years of competing on an uneven post-Brexit playing field, UK international hauliers are entering 2026 with structural advantages finally moving in their favour.

Regulatory change, rising cost pressures across the EU and tighter controls on cross-border movement are beginning to reshape who can compete most effectively in the UK–EU road freight market. While volumes remain contested, the direction of travel suggests improving competitiveness for UK-registered operators.

From 25 February 2026, foreign HGV drivers travelling to the UK who do not require a visa for short stays will need an Electronic Travel Authorisation (ETA). Drivers without a valid ETA will not be permitted to board transport to the UK.

The Home Office has already rolled out port-based communications and visual assets to support compliance, signalling that enforcement will be practical and visible rather than theoretical. For UK hauliers, whose drivers already hold UK immigration status, this removes friction rather than adding it—reducing uncertainty at the border and improving journey reliability.

UK operators quietly rebuild momentum

Official data shows that UK-registered HGVs are beginning to recover ground in international movements. UK vehicles lifted 4% more international freight year on year, while the number of cross-border trips rose by 2%.

UK-registered vehicles now account for 13% of powered vehicle trips to Europe and that recent growth contrasts with a more challenging picture for foreign operators. Freight lifted by foreign-registered HGVs to and from the UK fell by over 5% in 2023, reflecting pressure on both import and export legs.

According to the Road Haulage Association (RHA), EU operators are entering a period of stagnation rather than expansion. Growth is constrained not by lack of demand, but by rising operating costs and regulatory pressure.

Fuel, tolls and insurance costs continue to increase across the EU, while driver shortages are forecast to reach 400,000 by 2026. At the same time, mandatory investment in digital systems and the EU Green Deal’s push towards alternative-fuel vehicles are adding capital strain, particularly for smaller fleets. New regulatory requirements are also tightening operational flexibility, limiting how easily EU hauliers can redeploy assets into the UK market.

The RHA concludes. “Since 2004, trips by total foreign-registered powered vehicles have outnumbered trips by UK-registered powered vehicles… the resilience and resourcefulness of UK international hauliers may finally put them at a competitive advantage in 2026, as the playing field changes.”

A more balanced market

Taken together, these factors suggest a gradual rebalancing rather than a sudden shift. UK hauliers benefit from regulatory alignment at home, fewer border compliance risks and improving international volumes, while EU operators face cost inflation, labour shortages and tighter access conditions.

In 2026, competitiveness is likely to be defined not by scale alone, but by compliance readiness, operational certainty and cost control—areas where UK hauliers are increasingly well positioned to compete.

As regulatory change reshapes cross-border haulage and competitiveness shifts, execution and network design matter as much as cost. Metro supports shippers with compliant, reliable road freight solutions across the UK and Europe, combining local operational strength with cross-border expertise.

As part of GB Global, Metro also benefits from access to commercial vehicle fleets operating in both the UK and EU, allowing capacity to be deployed where it delivers the greatest reliability and value. This balanced model helps customers manage risk, maintain service continuity and adapt as market conditions evolve.

EMAIL Managing Director, Andrew Smith, to find out more about Metro’s road freight capabilities

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Smart 2026 supply chains are being engineered for pressure

Supply chains are no longer judged on efficiency alone, in 2026 they will be expected to anticipate disruption and adapt at speed to actively support growth. The experience of the past year confirmed that stability is no longer a realistic planning assumption, but performance under pressure is.

Rather than a single crisis, 2025 delivered constant friction. Congestion resurfaced across ports and inland networks, capacity existed but was selectively deployed, and geopolitical and regulatory shifts altered trade flows long before any formal policy changes took effect. 

The result was a decisive shift in mindset: supply chains must be designed to operate in volatility, not merely recover from it.

That shift accelerates in 2026, as technology, resilience and sustainability converge to redefine how supply chains are planned, financed and executed.

Resilience becomes a competitive advantage

If 2025 proved anything, it was that capacity on paper does not guarantee performance in practice. Across ocean, air and road freight, service reliability was dictated by execution: blank sailings, schedule volatility and inland bottlenecks determined what actually moved.

In response, supply chain design is moving beyond simple continuity planning toward resilience, where networks are designed to adapt and improve under stress.

Common characteristics include:

  • Multi-route and multimodal playbooks rather than single-lane optimisation
  • Near-shoring and regionalisation to shorten lead times and reduce exposure
  • Centralised planning paired with regional execution for faster response

These approaches reflect a broader shift away from cost-minimisation toward risk-adjusted performance.

Warehousing becomes a strategic control point

Warehousing emerged as one of the most critical differentiators in 2025 — a trend that intensifies in 2026. With transit times less predictable and congestion harder to avoid, inventory positioning and fulfilment speed have become central to supply-chain resilience.

High-performing shippers increasingly treat warehousing as an active control layer, not passive storage. Key developments include:

  • Greater use of strategically located facilities to buffer disruption
  • Tighter integration between warehousing, transport and customs planning
  • Investment in automation and robotics that flex with demand and seasonality

This is particularly important as omnichannel and e-commerce pressures continue to grow, demanding seamless support for direct-to-consumer, BOPIS and rapid fulfilment models alongside traditional B2B flows.

From reactive networks to intelligent systems

One of the most significant changes heading into 2026 is the role of technology within supply chains. What began as analytical support is now moving into operational control.

AI-enabled tools are increasingly embedded across planning, procurement, inventory management and risk assessment, enabling supply chains to:

  • Anticipate disruption through predictive insights
  • Optimise routing, inventory and capacity decisions in near real time
  • Coordinate responses across multiple functions and geographies

As these systems become more connected, cybersecurity and data governance also rise sharply in importance. Protecting sensitive operational, commercial and customs data is now a core supply-chain requirement, not an IT afterthought.

Data quality, skills and execution define winners

Technology alone is not enough. The past year also highlighted a widening gap between organisations that could convert insight into action and those constrained by fragmented systems and poor data quality.

In 2026, competitive advantage depends on:

  • Clean, trusted and consistent data across logistics, customs and finance
  • Integrated platforms rather than disconnected tools
  • Teams with the skills to manage AI-driven, data-rich operations

Workforce transformation is therefore as important as digital investment. Roles are evolving toward data analytics, systems oversight and exception management, requiring targeted up-skilling to unlock value from new technologies.

Sustainability and compliance move into the operating core

Environmental and regulatory pressures are no longer peripheral considerations. Carbon pricing, emissions transparency, stricter customs enforcement and evolving trade rules are now shaping routing, mode selection and inventory strategy.

For most shippers, progress in 2026 will come less from premium “green” options and more from practical levers:

  • Smarter planning and consolidation
  • Modal optimisation and regionalisation
  • Stronger traceability and data governance

Sustainability and compliance have become operational constraints — inseparable from cost, resilience and service performance.

Designing supply chains that perform under pressure

Taken together, the direction of travel for 2026 is clear. Supply chains are being rebuilt as intelligent, integrated systems — shifting from reactive cost centres to strategic growth engines.

The most resilient networks are those that:

  • Integrate finance, procurement, logistics and technology decisions
  • Combine centralised control with regional agility
  • Invest equally in data, platforms, people and process

The objective is not to eliminate disruption, but to design networks that continue to perform when conditions are uncertain.

At Metro, this same mindset underpins how supply chains are assessed and supported. Stress-testing assumptions, strengthening visibility and applying execution-focused logistics, warehousing and transport strategies. In 2026, the differentiator will not be avoiding disruption, but owning a supply chain designed to operate through it.