June Market Update

Peak Season has arrived early!

Far East to UK: Sea Freight Capacity remains tight

Securing space on vessels remains the greatest challenge for importers. 

Across China and other Far Eastern ports, vessel utilisation remains exceptionally high. Demand continues to outpace capacity on many services heading to the UK and Northern Europe. 

Blank sailings continue to remove available capacity. This and reduced carrier allocations are making it increasingly difficult to secure preferred shipping. 

We strongly encourage increased flexibility, planning and early booking. If you have shipments planned in July or August, contact your logistics provider to discuss requirements.

 

European & UK Port Congestion Continues to Create Challenges.

Major European gateway ports are facing increased congestion. Vessel schedules and network reliability are largely impacted. Delays at key hubs; Antwerp, Rotterdam and Hamburg create a knock on effect through the supply chain.

For UK importers this can result in: 

• Delayed vessel arrivals
• Missed feeder connections
• Longer container dwell times
• Reduced schedule reliability
• Delays to final delivery planning

 

UK ports continue to operate effectively however, congestion across the wider European network means delays can still be felt long after vessels arrive.

 

UK Haulage & Fuel Costs Remain Under Pressure

Domestic transport remains another area requiring close attention.

Fuel costs continue to fluctuate and remain a significant factor in transport pricing throughout the UK logistics sector.

Combined with ongoing pressures around driver availability, equipment utilisation and rising operating costs, haulage providers continue to face a challenging operating environment as volumes increase heading into peak season.

Customers should continue allowing flexibility within delivery schedules wherever possible.

 

Middle East Disruptions Continues To Impact Global Supply Chains

 

Whilst the situation remains ongoing, disruptions and costs are likely to stay volatile. 

 

Air Freight Capacity Tightening

Many businesses have looked towards air freight to mitigate delays within ocean freight supply chains.

However, air freight markets are now experiencing significant pressure of their own.

We’re seeing:

✈️ Increased demand across Asia-Europe trade lanes

✈️ Tightening capacity

✈️ Premium and express services commanding higher rates

✈️ Reduced availability for short-notice shipments

✈️ Continued upward pressure on pricing

For time-critical shipments, early planning is becoming just as important as it is within ocean freight.

 

Looking Ahead: July & August Expectations

Whilst market conditions can change quickly, our current expectation is that pressure will continue throughout June and July.

 

Sea Freight

🚢 Continued space shortages on Far East to UK services

🚢 Further rate increases and peak season surcharges

🚢 Ongoing vessel rollovers

🚢 Additional blank sailings

🚢 Continued schedule disruption

Air Freight

✈️ Premium rates likely to remain elevated

✈️ Capacity constraints expected to continue

✈️ Increased demand from shippers moving urgent cargo

✈️ Limited availability for last-minute bookings

UK Logistics

🚛 Ongoing pressure on haulage networks

🚛 Fuel costs remaining a key factor in transport pricing

🚛 Increased pressure on ports, warehouses and distribution hubs as volumes rise

 

Our View

In our opinion, this is currently the most challenging Far East import market we have experienced since the post-pandemic recovery period.

Whilst we do not expect these conditions to last indefinitely, current indicators suggest that capacity constraints, rate volatility and operational disruption are likely to remain throughout the summer peak season.

Businesses that plan ahead, communicate early and build flexibility into their supply chains will be best placed to navigate the weeks ahead.

 

What Importers Should Do Now

✅ Review July and August shipment plans now

✅ Book freight as early as possible

✅ Build additional lead time into your supply chain

✅ Consider contingency stock where possible

✅ Discuss upcoming requirements with your logistics provider

✅ Avoid relying on last-minute bookings where possible

 

Our teams continue to work closely with carriers, airlines and transport partners across our global network to secure capacity and minimise disruption wherever possible.

If you have upcoming shipments from the Far East or concerns about your supply chain, please speak with your account manager as early as possible.

Preparation, communication and forward planning will be critical throughout the months ahead.