Author: Candida Edwards

HMRC TRE Reporting

What Importers Need to Know About the New Customs Data System

HMRC has introduced a new reporting platform called Trade Reporting & Extracting (TRE), replacing the older Management Support System (MSS). For many importers and exporters, this is a quiet but important shift in how customs data is accessed, reviewed, and used for compliance checks.

While TRE is still being developed and refined, it is already becoming a key tool for businesses that want better visibility over their customs declarations.

So what exactly is it, and why should it be part of your monthly checks?

What is HMRC TRE?

Trade Reporting & Extracting (TRE) is a free HMRC service that allows traders to access customs declaration data submitted in their name.

This includes import and export declarations made through both CHIEF and CDS systems. In practical terms, it gives businesses a structured way to view what has been declared to HMRC by freight forwarders, customs brokers, or internal teams.

Previously, this information was accessed through the Management Support System (MSS), which was a paid service and often required separate setup and access arrangements. TRE replaces that system and brings reporting into a more standardised digital format.

Reports are typically available to download in spreadsheet format, which makes it easier for finance teams, compliance managers, and logistics departments to review the data.

Why HMRC introduced TRE

The move to TRE is part of HMRC’s wider shift towards digital customs processes under the CDS framework.

The goal is simple: improve transparency and give businesses better access to their own trade data.

Instead of relying solely on agents or monthly summaries, importers can now directly review the declarations that affect:

  • Duty payments
  • Import VAT
  • Commodity classification
  • Customs valuation
  • Origin and preference claims

This matters because responsibility for accuracy sits with the importer, even when declarations are submitted by a third party.

What information TRE reports contain

TRE reports can include a wide range of customs data, such as:

  • Import and export entries
  • Commodity codes used on declarations
  • Customs values and currencies
  • Duty and VAT calculations
  • Country of origin and preferential claims
  • Declaration references linked to shipments

This level of detail allows businesses to compare what was expected against what was actually submitted, and that comparison is where most issues are found.

Why monthly TRE checks matter

Even though the system is new and still being improved, monthly checks should already be part of standard due diligence.

Here’s why it matters in real terms.

1. Catch classification errors early

A wrong commodity code can affect duty rates, VAT, and compliance exposure. TRE helps identify these issues before they build up over time.

2. Verify duty and VAT accuracy

Small errors repeated across multiple entries can quickly become costly. Regular reviews help ensure financial accuracy.

3. Monitor broker activity

Many importers use multiple agents. TRE gives a single view of all declarations, so nothing slips through the cracks.

4. Support audit readiness

If HMRC reviews your records, having a clear monthly reconciliation of declarations strengthens your position.

5. Improve internal controls

Finance and logistics teams can align declared values with purchase records and landed cost models.

What businesses should do

Importers should treat TRE as part of their standard monthly compliance routine.

A simple process works best:

  • Download monthly TRE reports
  • Match declarations to invoices and shipping records
  • Check commodity codes and values
  • Review duty and VAT outcomes
  • Flag inconsistencies early

This does not need to be complex, but it does need to be consistent.

MORE INFORMATION

TRE is more than just a reporting upgrade. It represents a shift towards full transparency in UK customs data.

For importers, this means greater control, but also greater responsibility.

Businesses that build TRE checks into their monthly process will be better positioned to avoid duty errors, reduce compliance risk, and maintain cleaner customs records.

As the system evolves, those who adapt early will have a clear advantage in both operational control and HMRC readiness.

CROSS TRADE SHIPPING

Cross Trade refers to shipping goods from one country to another without the cargo entering the country where the freight forwarder or contracting party is based.

For example, a UK trading company may purchase goods from China and sell them directly to a customer in Canada. The cargo moves from China to Canada. It never enters the UK. Yet the shipment still requires full coordination, documentation, customs clearance, and freight management.

Cross Trade allows importers and exporters to operate globally without physically routing goods through their home country. For businesses managing international supply chains, this is not unusual. In fact, it is now a common model in global trade. It reduces transit time, lowers costs, and removes unnecessary handling.

At Future Forwarding, we handle Cross Trade shipments globally by air, sea, and road. We also provide customs brokerage, warehousing, online tracking, and full logistics support to keep your shipments controlled from origin to destination.

What Are the Benefits of Cross Trade for Importers and Exporters?

The main benefits of Cross Trade are reduced costs, faster transit times, and improved supply chain flexibility.

For Road Freight Europe to Europe no documents / customs required.

By shipping directly from supplier to customer, businesses can:

  • Avoid double handling and potential duplicate duties
  • Eliminate unnecessary warehousing
  • Reduce freight expenses
  • Shorten delivery lead times
  • Improve global responsiveness

For importers sourcing in Asia and selling into Europe or North America, or exporters manufacturing overseas for international distribution, Cross Trade offers a practical logistics structure.

It supports global expansion without increasing operational complexity.

How Does Cross Trade shipping Work?

Cross Trade shipping works by coordinating international transport and, depending on the Incoterms, managing customs clearance at origin and destination.

The process typically includes:

  • Export customs clearance in the origin country
  • Freight movement by air freight, sea freight, or road freight
  • Import customs clearance in the destination country (subject to Incoterms)
  • Full documentation management between all parties

The freight forwarder acts as the central coordinator, ensuring compliance in both countries while keeping communication clear between supplier and buyer.

For importers and exporters, this means you can buy and sell globally without physically handling the cargo in your home country.

What Documents Are Required for Cross Trade shipments?

Cross Trade shipments require standard international shipping documents, including a commercial invoice, packing list, and a transport document such as a bill of lading or air waybill.

Additional documentation may include:

  • Export declarations at origin
  • Import declarations at destination
  • Certificates of origin, if required
  • Neutral documentation when requested
  • Switch Bills of Lading

Road Freight Europe to Europe = no documents or customs required.

Why Choose an Experienced Freight Forwarder for Cross Trade?

Cross Trade involves multiple countries, customs authorities, and time zones. Without proper coordination, shipments can face delays, storage charges, or compliance issues.

An experienced freight forwarder ensures:

  • Correct export and import procedures
  • Clear and consistent communication
  • Accurate and compliant documentation
  • Efficient routing and transit planning
  • Reliable tracking and updates

At Future Forwarding we support global importers and exporters with structured Cross Trade designed for control and reliability.

If your business buys in one country and sells to another, Cross Trade is not complicated when managed correctly. It is simply a more efficient way to move cargo globally.

Speak to our team to discuss your next Cross Trade shipment and explore how we can support your global operations.

Our Services

FAQ

What are Switch Bills of Lading?

A Switch Bill of Lading is used when the seller or trading company does not want the final buyer to see the original supplier details. The original bill of lading is replaced with a new version that removes or changes certain information, such as the shipper or consignee.
 
This is common in Cross Trade, particularly for trading companies, as it protects commercial relationships and pricing structures.
 
Accuracy across all documents is critical. Errors can lead to customs delays, additional costs, or cargo being held at port.

Read More

Can Cross Trade be shipped by Air, Sea, or Road?
 

Yes, Cross Trade can be managed across all major transport modes, depending on the cargo and urgency.
 
Air freight is typically used for urgent or high-value shipments.
Sea freight is common for full container loads and groupage cargo.
Road freight supports regional cross-border movements, particularly within Europe and North America.
 

Is Cross Trade common in global logistics?

Yes, it’s widely used, particularly by trading companies and businesses with international supply chains.

As global sourcing and distribution continue to expand, Cross Trade has become a standard part of how goods move worldwide.

Do Cross Trade shipments require customs clearance?


Yes. Customs clearance is required in both the origin and destination countries, depending on the agreed Incoterms.

Even though the cargo does not enter your home country, full compliance with international shipping regulations is essential.

Do you offer Cross Trade shipping services?


Yes. At Future Forwarding, we manage Cross Trade shipments globally across air, sea, and road freight.

We provide full logistics coordination, customs brokerage, documentation management, and shipment tracking, giving you complete visibility and control throughout the process.
If your business buys in one country and sells to another, we can support your Cross Trade operations.

SEA-AIR SERVICE: Alternative Routing: China & Vietnam to UK via Los Angeles

A practical alternative route for time-sensitive cargo moving from Asia to the UK

Moving freight from China and Vietnam to the UK has become more challenging for many importers. Delays, shifting schedules and pressure on traditional routing can make it harder to plan with confidence.

For time-sensitive cargo, that creates a real problem.

If your goods are too urgent for standard ocean freight, but full air freight feels too expensive, Future Forwarding’s Sea-Air freight service via Los Angeles gives you another option. It is designed to sit neatly between ocean and air freight, offering a more balanced route for cost, speed and reliability.

This alternative routing moves cargo from China and Vietnam into Los Angeles by ocean freight. From Los Angeles, shipments are then moved by air into the UK.

It is not about overcomplicating the journey. It is about using a route that gives businesses more control when standard options are under pressure.

What is the China and Vietnam to UK Sea-Air service?

This Sea-Air service combines two modes of transport within one managed freight solution.

The first leg moves by ocean freight from Asia to Los Angeles. Once the cargo arrives in Los Angeles, it is transferred to air freight for the final leg into the UK.

This gives importers a flexible alternative to two common choices:

  • Standard sea freight, which may be too slow for urgent stock
  • Full air freight, which may be too costly for the whole journey

Sea-Air freight gives you a middle ground. You keep some of the cost benefits of ocean freight, while using air freight where it matters most: the final leg into the UK.

Why route Sea-Air freight via Los Angeles?

The main benefit of routing via Los Angeles is stability.

When routes through traditional hubs become less predictable, a different handover point can help reduce exposure to delay. Los Angeles provides an alternative route into the UK, helping businesses keep cargo moving without relying on one route or one region.

For many importers, this matters because predictability is just as important as speed. A shipment does not always need the fastest possible route. It often needs a route that can be planned, priced and managed properly.

That is where Sea-Air freight via Los Angeles works well.

It gives you:

  • A practical alternative to disrupted routes
  • Faster transit than standard ocean freight
  • Lower cost than full air freight
  • A clear route from Asia to the UK
  • Greater flexibility for time-sensitive cargo
  • A managed freight solution from origin to destination

Who is this service suitable for?

Sea-Air freight from China and Vietnam to the UK is best suited to shipments where timing matters, but where full air freight is not commercially viable.

It can be a useful option for businesses importing:

  • Retail stock
  • Consumer goods
  • Fashion and seasonal products
  • Electronics
  • Components and spare parts
  • Promotional stock
  • Ecommerce inventory
  • Goods affected by production or shipping delays

It is also useful when a shipment has missed its original window and needs to recover time without moving everything by air.

In simple terms, if your goods cannot wait for standard ocean freight, but you need to protect margin, Sea-Air freight is worth considering.

China to UK Sea-Air freight

For businesses importing from China to the UK, Sea-Air freight can help bridge the gap between ocean and air freight.

Many China-to-UK supply chains are built around planned ocean freight movements. That works well when there is enough time in the schedule. But when production delays, port congestion, demand spikes or customer deadlines create pressure, importers may need a faster option.

Routing via Los Angeles gives businesses another way to move cargo into the UK without automatically jumping to full air freight.

Future Forwarding can review the shipment profile, cargo details, timescale and budget, then advise whether this Sea-Air option is suitable.

Vietnam to UK Sea-Air freight

Vietnam continues to be an important sourcing market for UK importers, particularly for retail, consumer goods, fashion, furniture and manufacturing supply chains.

When Vietnam-to-UK ocean freight is too slow, Sea-Air freight via Los Angeles can provide a more flexible route. It allows importers to improve transit time while avoiding the full cost of air freight from origin to destination.

This can be particularly useful for seasonal goods, replenishment stock and products linked to launch dates or customer commitments.

How the Sea-Air freight process works

Future Forwarding manages the Sea-Air movement as one coordinated freight solution.

A typical process may include:

  1. Cargo collection or receipt at origin
  2. Ocean freight movement from China or Vietnam to Los Angeles
  3. Arrival and handling in Los Angeles
  4. Transfer from ocean freight to air freight
  5. Air freight movement from Los Angeles to the UK
  6. UK customs coordination
  7. Final delivery or onward distribution

The key point is that the shipment is planned as one route, not as disconnected transport legs.

That joined-up approach helps reduce confusion, improve communication and keep the cargo moving.

Why choose Sea-Air instead of full air freight?

Full air freight is the right choice when speed is the only priority. But for many importers, cost still matters.

Sea-Air freight gives businesses a more balanced option. By using ocean freight for the first part of the journey and air freight for the final leg, it can help reduce costs while still improving transit times compared with standard sea freight.

This makes it especially useful when:

  • The shipment is urgent, but not critical
  • The cost of full air freight is too high
  • Stock needs to arrive sooner than ocean freight allows
  • There is pressure to protect margin
  • You want to avoid a last-minute emergency air freight upgrade

Planning a Sea-Air movement early can often be more cost-effective than reacting late when delays have already caused a problem.

Why choose Sea-Air instead of standard ocean freight?

Ocean freight remains the most cost-effective option for many international shipments. But it only works when the delivery schedule allows enough time.

When stock is needed sooner, standard sea freight may not be practical.

Sea-Air freight helps reduce the risk of missed deadlines by shortening the overall transit time. It gives importers a faster route into the UK while still avoiding the full cost of moving the entire shipment by air.

For businesses managing tight supply chains, that balance can make a real difference.

A flexible route for changing market conditions

Freight routes are rarely fixed forever. Market conditions change. Capacity changes. Schedules change. Disruption in one region can make another route more attractive.

That is why flexibility matters.

The China and Vietnam to UK Sea-Air service via Los Angeles gives importers another option while certain lanes remain unsettled. It allows businesses to avoid relying on a single route and gives supply chains more room to adapt.

This is not a one-size-fits-all service. It will not be the right solution for every shipment. But for the right cargo, timing and budget, it can offer a very useful alternative.

Talk to Future Forwarding about Sea-Air freight

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Sea-Air Freight

AIRFREIGHT SERVICE UPDATE

Update: April 16th, 2026

We want to keep you informed of a developing situation impacting airfreight services across the Middle East and Gulf regions, which is now affecting both Export & Import Operations.

Several operational challenges have emerged, and conditions are continuing to change rapidly.

Below is a summary of the key developments:

Airfreight Imports: Temporary Operational Surcharge – UK Airports

A temporary operational surcharge will be applied to all import cargo arriving into London Heathrow and Manchester, effective Friday, 17th April 2026. This is being introduced by airlines in response to increased handling and capacity constraints. We expect all UK airport arrivals to be impacted in the coming weeks.

Airfreight Exports

Airline fuel surcharges continue to increase effective 17th April, and we anticipate a further spike in mid-May.
Validity on ad hoc quote requests will also be shorter due to ongoing volatility and frequent rate changes.

Airline Service Suspensions

Several carriers have suspended services to the Middle East until at least mid-May. This includes Air France / KLM and Turkish Airlines, with further airlines expected to follow as conditions evolve.

Virgin Atlantic has also cancelled services to Riyadh until further notice.

As a result, key Saudi Arabia gateways including Riyadh and Jeddah are also affected, with widespread restrictions and reduced flight availability due to the wider regional situation.

Widespread Flight Cancellations (Until Further Notice)

The following destinations are currently impacted by full suspension of airfreight services, until further notice:

  • Iran (IKA)
  • Iraq (BGW / EBL)
  • Syria (DAM)
  • Lebanon (BEY)
  • Jordan (AMM)

In addition, Gulf region operations are heavily disrupted, with cancellations affecting, until further notice:

  • Dubai (DXB)
  • Doha (DOH)
  • Kuwait (KWI)
  • Bahrain (BAH)
  • Abu Dhabi (AUH)
  • Dammam (DMM)

What this means for your shipments

Capacity is tightening quickly, and transit times are becoming less predictable. With surcharges being introduced and services withdrawn, we expect upward pressure on rates and potential delays across both direct and transhipment routes.

Our approach

We are actively monitoring the situation and working on alternative routing solutions where possible. This may include adjustments via unaffected hubs or revised airline options, depending on availability.

We will continue to review all shipments on a case-by-case basis and keep you updated with any changes that may impact your cargo.

If you have any urgent shipments or would like us to review specific movements, please get in touch with your usual contact.

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Previous Update

FUTURE FORWARDING GLASGOW OFFICE MOVE

Update: April 1st, 2026

We’re pleased to share that our Scotland branch has moved to a new location. This move reflects how our operations in the region are developing, allowing us to support customers more effectively and continue delivering the reliable service you expect.

As shipment volumes increase and customer requirements evolve, it’s important that our facilities keep pace. Our new premises will give us the additional capacity and improved infrastructure needed to handle your consignments more efficiently, while maintaining the same responsive, hands-on service you rely on day to day.

From a practical standpoint, it’s business as usual. Your existing contacts remain the same, and there will be no disruption to collections, deliveries, or ongoing shipments during the transition. We’ve planned the move carefully to ensure continuity across all services.

Please take note of our new address and update your records accordingly. If you have any questions or need support during this period, our team is on hand to help.

We appreciate your continued support and look forward to working with you from our new location.

Future Forwarding Glasgow Ltd

Suite 2/14, 1 Ainslie Road

Hillington Park

Glasgow

G52 4RU

All telephone numbers remain the same.

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LCL Groupage UK to USA

Fast, Reliable Shipping from the UK in Just 19 Days

Moving consignments to the US doesn’t need to be slow or unpredictable. Our premium LCL groupage service from the UK is built for speed, consistency, and full control from origin to delivery.

With direct weekly sailings and a strong network across the South East USA, you get a service you can actually plan around.

Why Shippers Choose This Service

Time-Critical Cargo? Covered.
Fast, dependable LCL schedules designed to keep your supply chain moving without delays.

Proven LCL Specialists
Experienced consolidation teams handling your cargo carefully at every stage.

Reliable Weekly Departures
Consistent groupage sailings you can build your shipping plans around.

Door-to-Door Service
From UK collection through to final US delivery, everything is handled.

Full Shipment Visibility
Clear updates at every milestone so you always know where your cargo is.

Simple, Joined-Up Process
One point of contact managing the full movement from origin to destination.

Strong US Delivery Network
Reliable last-mile delivery across the South East USA.

Competitive Pricing
Cost-effective LCL solutions without cutting corners on service.

Service Schedule

Our fixed weekly schedule keeps your shipments predictable and easy to manage:

  • Last Collection: Wednesday
  • Container Loading: Thursday
  • Vessel Departure: Saturday

Transit Times

  • Port-to-Port: 19 days
  • Door-to-Door: 23–25 days

Dates and Transit times are estimates and subject to change, and customs clearance at destination.

Built for Consistency, Not Guesswork

This isn’t ad-hoc groupage. It’s a structured, weekly service designed for businesses that need reliability. Whether you’re shipping regularly or working to tight delivery windows, you’ll have the confidence of fixed cut-offs and dependable transit times.

Ship to South East USA with Confidence

If you’re moving LCL cargo from the UK to the South East USA, this service gives you speed, visibility, and control without the cost of full container loads.

Get in touch today to secure your next shipment.

UK-USA Groupage ServiceDownload
Ocean Freight Services

Air Cargo Between Asia and Europe Faces Tight Capacity in 2026

Update: March 17th, 2026

Air freight continues to play a vital role in global trade, connecting Asia and Europe with fast, reliable transport for time-sensitive and high-value goods. In 2026, however, air cargo capacity along this key trade route is becoming increasingly limited. Shippers are seeing fewer available slots, higher costs, and longer transit times, making careful planning essential for importers and exporters.

What’s Driving the Air Freight Capacity Squeeze?

The main driver behind the current air freight capacity squeeze is a mix of rising demand and ongoing operational constraints. Global trade volumes are climbing, particularly across high-value sectors like technology, pharmaceuticals, and e-commerce. Naturally, this puts pressure on available cargo space.

At the same time, airlines are dealing with restricted airspace in key regions. Areas impacted by geopolitical tensions, especially across parts of the Middle East, are forcing carriers to reroute flights. These longer, indirect routes reduce overall aircraft availability on major Asia–Europe corridors, tightening capacity even further.

Rising Air Freight Rates Across Asia–Europe

With space becoming harder to secure, air freight rates have responded accordingly. Prices have increased, particularly for time-critical and high-value shipments.

Shippers moving sensitive goods, such as temperature-controlled pharmaceuticals or electronic components, are feeling this most. Airlines are prioritising these shipments, but limited space means higher costs across the board.

For many businesses, this isn’t just about price. It’s forcing a rethink of shipping strategies, timelines, and risk management.

How Airlines Are Adjusting Capacity

Airlines are actively trying to balance supply with demand, but it’s not a quick fix.

Dedicated freighter services are being redirected towards the most critical trade lanes. At the same time, passenger aircraft are being used more efficiently, with belly cargo space maximised wherever possible.

On the ground, several airports, particularly across Central and Eastern Europe, are expanding cargo handling capabilities. This helps freight forwarders consolidate shipments more effectively and create alternative routing options. Still, despite these efforts, premium and express air freight services remain under pressure.

Smart Strategies for Shippers

For businesses moving goods between Asia and Europe, planning ahead is no longer optional. It’s essential.

Securing space early is one of the most effective ways to avoid disruption. Waiting until the last minute often means higher costs or limited options.

It’s also worth considering flexible routing. Using secondary hubs or combining air freight with rail or ocean solutions can ease pressure on tight routes. These hybrid approaches can offer a balance between cost, speed, and reliability.

Why Your Freight Forwarder Matters More Than Ever

In a constrained market, having the right logistics partner makes a real difference.

An experienced freight forwarder can help you navigate route changes, manage capacity challenges, and identify cost-efficient options. More importantly, they can provide visibility and flexibility when conditions shift unexpectedly.

Close coordination allows you to align shipments with available space, anticipate surcharges, and reduce the risk of delays caused by congestion or airspace restrictions.

Looking Ahead for Air freight

Air freight capacity between Asia and Europe is expected to remain tight in the near term. Demand continues to outpace available space, and operational constraints are unlikely to ease overnight.

That said, businesses that take a proactive approach can still stay ahead. With the right planning, flexible routing strategies, and strong logistics partnerships, it’s possible to maintain reliable supply chains and keep goods moving efficiently.

In a market like this, preparation isn’t just helpful. It’s what keeps your supply chain competitive.

Our Airfreight Services

At Future Forwarding, we specialise in providing flexible air freight solutions across the Asia-Europe corridor. Whether your shipments are urgent, temperature-sensitive, or require multi-modal routing, our team can help identify the best approach to keep your supply chain moving efficiently, safely, and on time.

AIR FREIGHT SERVICES

EORI Number Misuse on the Rise: What Traders Need to Know

Update: March 16th, 2026

EORI numbers (Economic Operators Registration and Identification) are the cornerstone of customs compliance across the EU and UK. But recent reports indicate a growing risk: fraudulent or unauthorized use of EORI numbers is becoming more common, and it could have serious consequences for traders and logistics partners.

How EORI Numbers Can Be Misused

Even when shipments are correctly routed, misuse can occur if an EORI number is:

  • Used without authorization by third parties, including brokers or intermediaries submitting customs declarations in your name.
  • Shared or reused incorrectly on trading lanes, leading to errors or unexpected customs queries.
  • Deliberately exploited to bypass compliance checks or manipulate duty and VAT obligations.

The result? Even non-malicious misuse can trigger customs investigations, shipment delays, or compliance alerts, creating extra administrative work and operational risk for legitimate businesses.

Why This Matters for Traders

EORI numbers link shipments directly to a legal entity, allowing customs authorities to track:

  • Duties and taxes owed
  • Entry and exit summaries
  • Compliance with import/export regulations

If someone else uses your EORI, you could face:

  • Unexpected customs enquiries or audits
  • Potential reputational or financial risk
  • Delays in clearance at ports or airports

Steps to Protect Your EORI

To safeguard your business, customs experts recommend you:

  • Validate all trading partners’ EORI numbers before shipments. Both EU and UK authorities provide official online verification tools.
  • Monitor filings linked to your EORI through your customs broker or freight forwarder. Early detection of unauthorized activity is key.
  • Report any suspicious or unexplained filings immediately to HMRC or the relevant EU customs authority to prevent further misuse.

Fraudulent use of EORI numbers isn’t just a theoretical risk, it’s a real operational threat for importers, exporters, and logistics providers. Vigilance, verification, and monitoring are essential to ensure smooth customs clearance and protect your supply chain from avoidable disruptions.

What is the EU ETS? A practical guide for importers and exporters

What importers and exporters need to know now

From January 2026, the EU Emissions Trading System (EU ETS) has moved into full implementation for shipping. If you’re moving cargo in or out of Europe, this is no longer a background cost. It’s now a visible and growing part of your freight rates.

Here’s what’s changed and what it means for your business.

What is the EU ETS?

The EU ETS (Emissions Trading System) is the European Union’s carbon pricing system. It puts a cost on greenhouse gas emissions.

Here’s the simple version:

  • Companies in certain sectors must pay for the carbon they emit
  • They do this by buying emission allowances
  • The more they pollute, the more they pay

Think of it as a cap and trade model. There’s a limit on total emissions, and companies trade allowances within that limit. it links all your imports, exports, and transit operations to a single, official identifier.

The key change: full carbon costs now apply

The phased rollout is complete.

  • 2024: 40% of emissions covered
  • 2025: 70%
  • 2026: 100% now covered

Shipping lines must now pay for all emissions linked to EU voyages, and those costs are being passed through the supply chain.

In practical terms, ETS is now a core component of ocean freight pricing, not a minor surcharge.

So whether you’re importing containers into Rotterdam or exporting from Antwerp, you’ll likely see these charges reflected in your freight rates.

What you’ll see in your freight costs

Higher ETS surcharges

With full compliance in place, carbon-related charges have increased noticeably compared to 2025.

These charges:

  • Vary by trade lane and vessel efficiency
  • Change in line with carbon allowance prices
  • Are applied differently by each carrier

So two similar routes can now show very different total costs.

More cost volatility

Unlike fixed surcharges, ETS is linked to a live carbon market.

That means:

  • Costs can rise or fall month to month
  • Budgeting needs a bit more flexibility
  • Long-term pricing requires closer attention

A broader emissions scope

From 2026, the system also expands beyond CO₂.

Shipping companies must now account for:

  • Methane (CH₄)
  • Nitrous oxide (N₂O)

This increases the overall emissions calculation, which in turn increases the cost of compliance.

How this affects your shipments

The structure remains the same, but the impact is now stronger:

  • 100% of emissions → for movements within the EU
  • 50% of emissions → for imports into or exports out of the EU

Now that full pricing applies, these rules have a direct and visible effect on your landed costs.

What we recommend to our clients

At this stage, it’s less about reacting and more about planning properly.

Review your freight quotes in detail

Look at how ETS is applied. Not all carriers calculate or present it the same way.

Compare total cost, not just base rates

A lower base rate doesn’t always mean a lower final cost once ETS is included.

Keep routing flexible

Where possible, small changes in routing or consolidation can help manage exposure.

Talk to us

We support our clients by:

Identifying practical ways to reduce impact

Explaining ETS charges in plain terms

Comparing carrier options across total cost

In Summary

January 2026 marked the point where EU ETS becomes fully embedded in European logistics.

For importers and exporters, that means:

  • Higher and more variable freight costs
  • Greater importance on carrier and route selection
  • A stronger link between sustainability and pricing

Handled properly, it’s manageable. Ignored, it can quietly eat into margins..

If you’d like a breakdown of how EU ETS is affecting your specific shipments, we can walk you through it and highlight where savings or stability can be found.

Middle East Conflict: Surcharges Applied

Update: March 9th, 2026

Ongoing tensions in the Middle East continue to affect freight operations, resulting in schedule changes, rerouted shipments, and tighter capacity across key trade routes. Logistics providers are implementing measures to manage these challenges, including additional surcharges to reflect increased operational costs and risks.

These surcharges have now been applied by our suppliers, and we will need to pass these costs on to clients. This is in line with standard industry practice and reflects the current operational environment.

Emergency Fuel Surcharge

  • Is being implemented widely across the logistics industry.
  • Applied due to higher fuel consumption and costs caused by regional instability and rerouted services.
  • Reflects the extra fuel used on longer or more complex routes.

War‑Risk Surcharge

  • Now introduced in response to heightened conflict and operational risks in affected regions.
  • Applied broadly across services and cargo moving through or near high-risk areas.
  • Industry‑wide measure; similar surcharges are expected from most providers.

For shipment-specific guidance or contingency planning, please contact our team directly.

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