Bunkering

Fuel disruption drives ocean bunker volatility

Mar 31, 2026 |

Fuel markets have become a central pressure point for global logistics, with the Middle East crisis disrupting supply, driving sharp price volatility and forcing operational changes across ocean freight networks. 

While availability remains manageable in the short term, underlying conditions point to a tightening market with wider implications across all transport modes.

Export volumes of crude and refined products exiting the Strait of Hormuz have fallen to less than 10% of pre-war levels, forcing fuel suppliers across the region to reduce or shut down production.

In the short term, bunker availability in major Asian hubs such as Singapore and China remains stable and is expected to hold into April. However, this is being supported by inventory already in the supply chain, with limited replenishment currently reaching the market.

This creates a fragile balance. If disruption continues, tightening supply conditions are likely to spread beyond Asia into Europe and other regions.

Bunker prices surge, with regional imbalance emerging

Fuel prices have risen sharply since late February, reflecting both supply disruption and market uncertainty. While prices have eased slightly in recent days, they remain significantly elevated.

Singapore (24 March):

  • VLSFO up 71% since late February
  • MGO up 151%
  • HSFO peaked up 146%, before easing back

Rotterdam (24 March):

  • VLSFO up 54%
  • MGO almost double pre-conflict levels
  • HSFO up 63%

This divergence highlights tightening supply conditions in Asia compared with relatively better availability in Europe. The spread between bunkering hubs is widening, influencing where carriers refuel and how networks are structured.

Fuel costs drive rate pressure across key trade lanes

Rising oil prices are now feeding directly into ocean freight pricing. On the transpacific, rates have increased by around 12%–14% week-on-week, driven primarily by fuel cost escalation rather than demand strength.

Across other major trades, the impact vs pre-war levels is also visible:

  • Asia–North Europe rates up 41%
  • Asia–Mediterranean rates up 34%

At the same time, carriers are introducing additional fuel cost recovery mechanisms. Bunker fuel can account for up to 30% of operating costs, and the speed of recent increases has outpaced traditional quarterly bunker adjustment factors (BAFs).

To bridge this gap, carriers have implemented emergency fuel surcharges. However, even with these measures, analysts suggest that freight rates would need to rise by around 15% to fully offset current fuel cost increases.

Operational impact extends across global logistics networks

Fuel disruption is also influencing how logistics networks operate. Ocean carriers are adjusting sailing speeds, refuelling strategies and service deployment to manage both cost and availability.

Where bunker supply is uncertain, vessels are taking fuel in alternative regions and redistributing it across networks. In more constrained scenarios, service reductions or blank sailings become a risk if fuel cannot be sourced reliably.

The impact is not limited to ocean freight. Aviation networks are also exposed, as jet fuel availability at destination airports becomes a critical factor in maintaining flight schedules. Reduced access to fuel can limit route viability and constrain capacity.

Overland transport is similarly affected. Rising fuel costs are feeding directly into road freight pricing, while any tightening in diesel supply could create further disruption. In the UK, petrol availability remains stable, but diesel is more exposed to global supply shocks, with potential shortages emerging within weeks if disruption persists.

Staying ahead of fuel-driven disruption

Metro monitors bunker supply conditions independently and works closely with carrier partners, to avoid disruption and guide routing decisions before constraints impact your shipments. This early intervention secures space on viable services and routings, while avoiding high-risk bunkering points.

By combining market intelligence with practical execution, Metro helps you stay ahead of fuel-driven disruption rather than reacting to it.

To review your current exposure and options, EMAIL Andrew Smith, Managing Director.

Suez empty

Middle East: Disruption ripples through global supply chains

Mar 6, 2026 | , , ,

The ongoing disruption across the Middle East is now sending shockwaves far beyond the region itself, with upstream impacts emerging across air cargo networks, ocean shipping services and global freight pricing.

What began as a regional security crisis affecting Gulf airspace and the Strait of Hormuz is increasingly triggering structural changes in how global supply chains move cargo between Asia, Europe and the Americas.

Carriers and airlines are rapidly restructuring networks, while a growing number of emergency surcharges are being introduced as transport providers attempt to offset rising operational risks and fuel costs.

Air cargo networks feel the strain

Air cargo capacity has begun to stabilise slightly, but significant gaps remain in global lift availability.

Global air cargo capacity is currently down around 8%, improving from the 18% decline recorded earlier in the week. However, the regional disruption remains severe.

Outbound capacity from the Middle East to Europe remains 52% below normal levels, although this is an improvement on the 61% reduction seen earlier in the crisis.

At the same time, capacity from Asia Pacific to the Middle East remains 57% lower week-on-week, reflecting the continued disruption to key Gulf hub airports.

To compensate, airlines have increased direct Asia–Europe flights by around 14%, bypassing traditional stopovers in Dubai, Doha and Abu Dhabi and operating longer non-stop sectors.

However, direct flying cannot fully replace the connectivity normally provided by the Middle East’s hub-and-spoke air cargo networks.

Approximately a quarter of China–Europe air cargo capacity normally transits the Middle East, meaning the sudden loss of these hubs is creating structural gaps in the global network.

South Asia exports under particular pressure

The disruption is particularly acute for exporters across South and Southeast Asia, where cargo flows to Europe and North America rely heavily on Middle Eastern transit hubs.

Across South Asia–Europe corridors, available cargo tonne kilometres (ACTK) have fallen by 39%, leaving shippers scrambling to secure alternative routings.

Air cargo markets across the Indian Subcontinent and Bangladesh are already feeling the secondary effects.

Export capacity from Dhaka has tightened significantly, pushing airfreight rates up by roughly 20%.

In India, where many cargo services traditionally route via Gulf hubs, capacity constraints are becoming increasingly visible. Several major origins are now overbooked, some locations have temporarily stopped accepting cargo for five to seven days, and freight rates have increased by two to three times on certain lanes.

As capacity normally routed through the Middle East disappears, cargo destined for Europe and North America is expected to begin stacking up at Asian airports, creating a growing imbalance between available lift and cargo demand.

Early signs of pricing pressure are already emerging.

Spot rate indices have increased 2% from China to North America, 7% to Northern Europe, and 3% eastbound across the Atlantic.

The developing supply-demand imbalance is drawing comparisons with airfreight market conditions seen during the COVID-19 pandemic, when ocean disruptions pushed large volumes of cargo into the air freight market and triggered rapid rate increases.

Disruption spreads through global shipping networks

The ocean freight sector is experiencing a similar cascade effect.

Maritime tensions intensified further this week when the 1,700-TEU container vessel Safeen Prestige was struck by a missile in the Strait of Hormuz, bringing the total number of vessels hit during the crisis to six tankers and one container ship.

Although only a small proportion of the global fleet is physically located in the immediate risk zone, the operational consequences extend much further.

Currently around 2% of the global container fleet is located inside or near the Persian Gulf.

However, the wider network impact extends far beyond those vessels.

A total of 124 liner services include at least one Arabian Gulf port in their scheduled rotations, representing:

  • 520 container vessels
  • 3.6 million TEU of deployed capacity

As a result, the current disruption is directly affecting more than 10% of the global container shipping fleet by deployed capacity.

Carriers are already restructuring services, redeploying vessels and adjusting port rotations across multiple trade lanes as they attempt to maintain network stability.

Emergency surcharges begin to emerge

Alongside operational disruption, shipping lines have begun implementing a growing range of emergency surcharges linked to security risks, fuel costs and network congestion.

These charges are appearing under several different names, including:

  • ECS – Emergency Conflict Surcharge
  • WRS – War Risk Surcharge
  • EFS – Emergency Fuel Surcharge
  • EFQ – Emergency Fuel Quarterly surcharge

While terminology varies, the purpose is broadly similar: to offset the additional costs associated with longer sailing distances, higher insurance premiums and volatile fuel markets.

In some cases, the surcharges being discussed across the market are significant and may reach four-figure levels per container, depending on the trade lane, equipment type and carrier policy.

Because these charges differ between carriers and routes, shippers may encounter multiple surcharges applied simultaneously as conditions evolve.

Alongside new surcharges, carriers are also introducing operational measures designed to manage equipment supply and limit container accumulation at intermediate ports.

In one recent example, a major carrier has introduced a requirement for import containers discharged at certain ports to be collected from the quay within 48 hours.

Failure to remove containers within that timeframe may trigger additional charges, which in some cases are in a substantial four figure range.

Cargo backing up upstream

The ripple effects are already visible at origin.

In Bangladesh, more than 1,000 containers are currently stranded at Chittagong port and inland depots, while hundreds of containers already shipped remain stuck at Middle Eastern ports or on vessels awaiting discharge.

Similar pressures are beginning to appear at other Asian export hubs as Gulf-bound cargo stalls and vessels adjust schedules.

Nearly every major Asia export port is now experiencing some level of disruption, either through delayed sailings, suspended services or uncertainty around onward routing.

As shipping lines and airlines continue restructuring their networks, the full impact is expected to spread further across global supply chains.

Ocean carriers may redeploy vessels across Asia–Europe and Asia–US trade lanes, while airlines continue adjusting long-haul flight paths to compensate for the loss of Gulf connectivity.

Managing disruption

In light of the rapidly evolving situation, Metro is working closely with customers to assess the need for contingency airfreight on a shipment-by-shipment basis.

Our team can also advise on alternative routing options, particularly for cargo that would normally transit Middle Eastern hubs, helping customers minimise disruption and maintain supply chain resilience.

Customers with shipments moving through the region are encouraged to contact their Metro representative to review routing options and obtain the latest operational guidance.

Chennai office view from 1440x1080 1

Metro Expands Indian Presence with New Chennai Facility

Jun 25, 2025 |

Metro’s momentum in India continues to accelerate, with the opening of a second office in Chennai to support the ongoing expansion of Metro’s operations globally.

Designed to accommodate an additional 130 colleagues, this brand-new facility complements our existing Chennai headquarters and is a clear signal of our long-term investment in India.

This expansion marks another important milestone in Metro’s growth journey across the Indian Subcontinent. With the dual platforms of Metro Global India (MGI), delivering tailored services to select global customers directly in India, and Metro Indian Subcontinent (M-ISC), which serves as our Global Operational Centre (GOC), providing critical operational, accounting, financial, commercial, and administrative support for Metro’s global network.

India is fast becoming a critical operational hub and by the end of 2025, we expect to have more colleagues based in India than in our other global locations combined.

Metro’s Indian presence is powered by two critical pillars:

  • Service excellence for our key global customers business in India, delivered locally through MGI’s expanding footprint.
  • Global support services, delivered through M-ISC’s high-performance teams working across our advanced digital platforms.

This dual approach enables us to deliver tailored, efficient, and scalable solutions for customers in India and around the world, supported by deep local knowledge and global integration.

Our latest investment in Chennai is just the beginning. We have ambitious plans to grow further in the region, including the expansion of our specialist industrial sector division within MGI to meet increasing demand in this high-growth vertical.

Metro’s global expansion is driven by the needs and ambitions of our customers. As their operations grow in scale and complexity, we continue to build the teams, platforms, and facilities needed to support them locally.

Grant Liddell, Metro’s Chief Executive Officer commented. “We are incredibly proud of our Indian teams and their contribution to Metro’s global success. Congratulations to all colleagues in Chennai and across the country on this latest achievement and thank you for your continued commitment to delivering excellence for our customers worldwide.”

To learn more about our services in India or explore opportunities to collaborate, please EMAIL our managing director, Andrew Smith. We’d be delighted to support your supply chain.

MVT invoice app 1440x960 1

Metro Unveils Leading-Edge Invoice Application

Mar 18, 2025 |

At Metro, innovation is at the heart of everything we do. Our latest advancement, the MVT Invoice Application, is set to transform how customers manage invoices and financial transactions.

Launching for BETA testing on March 17th, this new feature enhances our My Visibility Tool (MVT), delivering seamless, integrated invoice management.

With real-time tracking, a dynamic dashboard, and full visibility across all trading currencies, customers can monitor outstanding payments and settled transactions effortlessly. Advanced search, quick filters, and an intuitive invoice type switcher streamline workflows, eliminating manual effort and saving valuable time.

Additionally, the ability to view and download invoices and credit notes instantly ensures a hassle-free, centralised experience. This innovation empowers users with greater financial control, reduces administrative burdens, and enhances overall efficiency.

Key Features & Functionality:
Visual Dashboard – Get a summarised view of outstanding invoices across all trading currencies at a glance.
Paid Invoice Overview – Track monthly and yearly invoice values in real time across multiple currencies.
Advanced Search Function – Quickly find and retrieve invoices and credit notes with an intuitive search tool.
Invoice Type Switcher – Effortlessly toggle between Freight & Customs and Duty & VAT transactions for better organisation and clarity.
Pre-configured Quick Filters – Navigate to the most relevant data instantly using streamlined widget-based filtering.
View & Download Capability – No more chasing paperwork! Instantly view PDF invoices and credit notes or download bulk invoice documentation in spreadsheet format.
Transaction Summary – Gain quick insights into charged codes and line items with an information icon providing clear transaction details.
Settled Transactions Access – Easily review settled transactions and retrieve necessary records in just a few clicks.

DOWNLOAD PDF Feature Summary

Join the Beta Testing Group
To ensure our new Invoice Application meets the highest standards of functionality and user experience, we are inviting a select group of customers to participate in the BETA phase. This exclusive opportunity allows participants to shape the future of Metro’s digital financial tools while gaining priority access to the latest enhancements.

Interested? Reach out to your key account manager or EMAIL Ian Powell, Customer & Technical Solutions Director.

Metro remains committed to leveraging technology to streamline operations and enhance customer experiences. The MVT Invoice Application is just one of many initiatives designed to bring greater control, visibility, and efficiency to our customers.

Stay tuned for further updates and the official launch.

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