Check out below for the latest MGC & Logistics News…
The US/Israel & Iran Crisis…
The escalating US/Israel and Iran conflict is exerting significant pressure on global logistics, driving both operational inefficiencies and cost inflation across supply chains. Disruption around key transit routes, combined with rising energy prices, is already translating into higher freight and handling costs, with broader implications for trade flows if the situation persists.
- Chokepoint disruption: Instability around critical routes such as the Strait of Hormuz is reducing shipping efficiency and extending transit times
- Energy-driven inflation: Rising oil prices are increasing fuel costs across ocean, air, and land transport
- Freight cost escalation: Carriers are introducing surcharges, with rates rising across multiple modes
- Insurance and risk premiums: War risk coverage and security costs are adding further financial pressure
- Reduced flexibility: Air freight capacity constraints are limiting alternatives to disrupted ocean routes
- Broader supply chain impact: Longer lead times, higher inventory costs, and pressure on energy-intensive sectors
Overall, the conflict is emerging as a key driver of logistics cost inflation, with the potential to create sustained inefficiencies and upward pressure on global trade costs if conditions deteriorate further. With this situation evolving constantly, try to ensure your business is prepared for the upheaval…
Single Trade Window shelved?…
The STW has been shelved, according to the FT.
The UK’s planned Single Trade Window (STW), a digital platform designed to allow traders to submit all customs and regulatory documentation through a single entry point, has effectively stalled.
Freedom of Information disclosures reveal that no new funding has been allocated since January, no HMRC staff are currently assigned to the project, and delivery contracts have been closed. Originally proposed under the government’s 2020 Border Strategy, the programme has since been paused through 2025 to 2026.
While ministers maintain they remain committed to the concept, the lack of active development raises concerns. Industry experts continue to stress that a fully implemented STW would streamline border processes, reduce administrative burdens, and support end-to-end digitalisation of supply chains, making its delay a missed opportunity for UK trade efficiency.
US says tariff refund system not complete..
US Customs and Border Protection is building a system to refund US$166 billion in illegal tariff collections, with progress between 40 and 80 per cent, reports Reuters.
According to a court filing by CBP official Brandon Lord, the system will handle the processing, review, and reimbursement of payments.
The filing responds to a directive from the US Court of International Trade following the Supreme Court’s February decision to strike down most tariffs, which did not address the mechanism for issuing refunds. While more than 330,000 importers paid tariffs on approximately 53 million shipments, only 21,000 are currently registered to receive refunds. Payments will be made solely to the original importers, though consumer groups have called on businesses to pass on savings.
Some companies have already indicated their approach, with FedEx committing to reimburse customers and Costco signalling price reductions. Meanwhile, new 10 per cent tariffs introduced under emergency authority are facing legal challenges from states and businesses.
CBP noted that development of the system’s mass processing function is 40 per cent complete, while the review component is 80 per cent complete. No timeline has been provided for the disbursement of refunds.
The UK’s air cargo relies heavily on EU airports, with an estimated 40% never touching UK Runways…
Britain’s trade depends on Northern European airports than is realised. A predicted 40% of UK air cargo never touches a UK runway. Goods are often trucked to and from EU hubs such as Frankfurt, Paris, Amsterdam and Brussels.
This represents substantial, real demand for air freight services that is outsourced overseas. It remains largely invisible in UK airport planning, policy-making and public debate.
Structural Weakness in UK Freight
The UK currently lacks both the dedicated air cargo capacity and strategic planning levers required to handle its own demand. As a consequence, essential goods (food, pharmaceuticals etc) can be transported via EU airports.
This necessity adds in cost, transit time and emissions while weakening supply chain resilience. Disruption to the airfreight process, can affect availability of goods, inflation and public wellbeing.
Delays at borders, reductions in capacity at European hubs, such as planned slot constraints at Schiphol to meet environmental targets or geopolitical shocks, all pose direct treats to the UK economy and it’s security. Yet, the UK continues to rely on overseas infrastructure for cargo that originates from or is destined for, British businesses and consumers.
Road feeder services: normal practice, exceptional dependence
Road Feeder Services, cargo trucks operating under airline codes between airports, are a standard component of global air logistics. The unusual part, is the scale of the reliance in the UK.
Approx 1.7 million tonnes of cargo per year may be entering or leaving the UK by truck. Made up of RFS and cargo bumped from flights or routed via EU airports by non airline coded trucks due to capacity constraints.
EU airports are now critical to the UK national logistics system, despite any formal acknowledgement or plan to deal with the dependancy.
Trade, growth and border friction
Efficient air freight enables businesses to expand markets and operate globally. Without trade growth, the governments ability to fund infrastructure, public services and industry strategy is constrained.
Border friction since Brexit, has contributed to declining trade performance. As Rachel Reeves has noted in 2024, the UK ‘is too exposed to global disruption – but too closed to global trade.’ There is little evidence this has changed.
A critical data blind spot
The government cannot quantify the UK’s reliance on EU airports for airfreight. The post Brexit Computerised Transit System records every cross border movement, the system only allows one declaration to be viewed at a time, making meaningful analysis impossible.
This is a serious policy failure as without accurate data, effective planning cannot occur.
Key differences between EU and the UK
Germany plans cargo explicitly and nationally, rather than leaving capacity to market forces or passenger-led airport expansion.
The Netherlands measures and manages cargo dependency even when reducing capacity; the UK neither measure not mitigates it.
France aligns airport policy, industrial strategy and customs operations; the UK treats them largely as separate domains.
The US plans freight holistically and publishes data needed to manage risk.
Singapore assumes disruption will occur and plans capacity accordingly; the UK largely reacts after the fact.
Calls for strategic action
Accurate, accessible public data on UK airfreight flows
National planning for dedicated cargo capacity and contingency routing
Cross party political focus on supply-chain security
Structural engagement with industry on resilience, airport capacity and long term trade strategy
Without action, the UK risks discovering this vulnerability only when the system fails.
Article written by Sally Dixon FCILT
Sustainability & Green Fleets: From ESG to ROI
Sustainability in logistics has officially moved from branding exercise to bottom line strategy. Carriers and 3PLs are accelerating investments in electric vans, alternative fuels (HVO, bio-LNG), and AI driven route optimization, not just to meet emissions targets, but to cut operating costs and future-proof networks.
Industry leaders like DHL and FedEx are scaling electric delivery fleets and deploying data platforms that measure carbon at the shipment level, turning sustainability into a measurable service offering rather than a vague commitment.
Why it matters:
- Lower fuel volatility exposure
- Carbon transparency as a competitive differentiator
- Regulatory compliance becoming a structural advantage
- Long-term TCO improvements despite higher upfront capex
The move is clear, ‘green’ fleets are no longer a pilot project. They are a strategic lever reshaping cost structures, customer expectations, and competitive positioning across the supply chain.
A pretty special day…
Stepping through the doors of No. 10 Downing Street the Institute of Export & International Trade Director General, Marco Forgione was representing the international trade sector in the UK.
Reports say there were some great conversations had about how the UK can continue to support and empower our exporters to grow globally. Meeting with Varun Chandra, the PM’s key business and trade advisor, Marco had discussions with particular reference to the Digitisation of UK Trade as well as progress being made with regards UK Free Trade Agreements (India, the Gulf Cooperation Council (GCC) and the US in particular). It’s always inspiring to see collaboration between industry and government focused on helping businesses succeed beyond our borders.
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