The Squeeze Is Real: What Rising Costs Mean for UK Retail Supply Chains
The British Retail Consortium (BRC) made headlines recently when it called on the UK government to intervene on mounting cost pressures facing retailers. A poll commissioned by the BRC found that four in five consumers are concerned that ongoing instability in the Middle East will push food prices higher — and retailers say that concern is well-founded. Energy costs, freight rates, and logistics expenses are already straining supply chains before those pressures have fully worked their way through to the shelf.
At Future Forwarding, we work with importers and retailers on both sides of the Atlantic. What we are seeing on the ground tracks closely with what the BRC is describing.
A Squeeze From Two Directions
What makes the current environment particularly challenging is that it is not one problem — it is two converging at the same time.
The first is global. Continued instability in the Middle East has kept shipping lanes under pressure, with elevated insurance premiums and longer routing times on certain trade corridors. When freight costs rise, those increases do not stay with the carrier. They move through the supply chain and ultimately reach the importer, the retailer, and the consumer.
The second pressure is domestic. As BRC Chief Executive Helen Dickinson noted, not every challenge facing UK retailers originates overseas. Higher employer national insurance contributions, new packaging levies, revised business energy charges, and a growing regulatory burden are all policy decisions made in Westminster — and they land on top of the global headwinds, not instead of them.
The compounding effect of both simultaneously is what makes this moment particularly difficult to navigate.
Why This Matters for Importers
For businesses that source goods internationally — whether finished products, components, or raw materials — the cost picture has become increasingly complex. Freight rates fluctuate based on geopolitical conditions that can shift with little warning. Customs and compliance requirements add another layer of planning. And on the UK side, the evolving domestic regulatory landscape means that landed costs need to be recalculated more frequently than many businesses are accustomed to.
For our US-based clients with UK operations or sourcing relationships, it is worth noting that these pressures are not confined to one market. Global freight dynamics affect transatlantic shipments as well, and cost management strategies need to reflect that reality.
What You Can Do Now
While no business can fully insulate itself from geopolitical or macroeconomic forces, there are practical steps importers can take to manage exposure:
Review your total landed cost calculations. If your freight, insurance, and logistics assumptions have not been updated recently, they may no longer reflect current market conditions. Accurate landed cost data is the foundation of sound pricing and procurement decisions.
Audit your supply chain routing. Some trade corridors are more affected than others by current conditions. Working with your freight forwarder to evaluate routing options — including transit times, carrier options, and cost tradeoffs — can surface savings that are not immediately obvious.
Stay ahead of regulatory changes. In the UK specifically, packaging regulations and energy-related charges are evolving. Understanding the timeline and cost implications of upcoming changes allows for better planning rather than reactive adjustments.
Build contingency into your planning horizon. The environment is unlikely to stabilise quickly. Budgets and procurement plans that incorporate a range of scenarios, rather than a single forecast, will be more resilient.
The Broader Picture
The BRC’s call to action is directed at government ministers, and rightly so — there are levers within domestic policy that can ease pressure on businesses and households alike. But the supply chain challenge is broader than any single policy decision. It is the cumulative effect of global instability, rising input costs, and a more complex compliance environment landing simultaneously on businesses that are already working hard to hold prices steady.
Future Forwarding’s role in that environment is to help our clients move goods efficiently, compliantly, and with as much cost visibility as possible. Whether you are importing into the UK, the US, or both, we are here to help you understand what the current landscape means for your shipments — and what options you have.
If you would like to talk through how current conditions are affecting your supply chain, reach out to our team.