The EU Deforestation Regulation (EUDR) will come into effect on 30 December 2026 for large and medium-sized companies, followed by 30 June 2027 for small companies. The regulation will affect UK businesses exporting or supplying goods to the EU, while businesses in Northern Ireland should also consider the requirements.<\/p>\n\n\n\n
Exporters will need to provide due diligence statements to EU importers demonstrating that relevant goods are deforestation-free. The regulation covers commodities including cattle, cocoa, coffee, palm oil, rubber, soy and wood, as well as derived products such as chocolate and paper. The European Commission has published further guidance, training materials and information on the roles of businesses across the supply chain to support companies preparing for the new requirements.<\/p>\n\n\n\n
Geopolitical risk remains extremely high across the Strait of Hormuz and the Red Sea\/Bab el-Mandeb corridor, with a further serious attack on commercial shipping this week. On 23 September, the bulk carrier Cape Dao was struck while transiting close to the Strait of Hormuz. The vessel caught fire, one crew member was killed and the remaining seafarers were evacuated. The incident follows other recent attacks on commercial vessels and reinforces the significant security risks affecting shipping through the region.<\/p>\n\n\n\n
The situation in the Red Sea also remains uncertain. Despite heightened security concerns around the Bab el-Mandeb, container carriers continue to selectively increase their use of Red Sea and Suez routes. This is creating a mixed operating environment, with commercial shipping gradually returning to the route while security risks remain elevated.<\/p>\n\n\n\n
Asia-Europe capacity remains heavily affected by the proximity of the Mid-Autumn Festival from 25 to 27 September and Golden Week from 1 to 7 October. With the holidays falling so close together, alongside ongoing port congestion and vessel bunching, carrier schedules and port productivity remain unpredictable, with vessel waiting times of up to seven days reported in some locations.<\/p>\n\n\n\n
Spot rates from Asia to North Europe have softened as peak-season demand eases, although carriers are beginning to announce rate increases for the second half of October. Further capacity management and short-notice blank sailings may follow as carriers seek to support rate levels. The overall outlook remains unsettled as carriers balance strong pre-Golden Week demand, the expected reduction in demand afterwards and additional effective capacity becoming available through shorter Suez routings.<\/p>\n\n\n\n
The Indian Subcontinent remains operationally challenging. Conditions at Mundra have improved, but equipment shortages and poor schedule reliability continue to affect the region.<\/p>\n\n\n\n
US-China trade tensions have eased slightly following a delay to further US tariff action while negotiations continue. This may reduce some immediate pressure on Transpacific freight rates, although uncertainty remains around the outcome of ongoing trade discussions.<\/p>\n\n\n\n
There also remains uncertainty around the IMO Net-Zero Framework and its potential impact on international shipping costs. The proposed framework, including a global shipping emissions-pricing mechanism, remains under negotiation following its postponement last year, with the US continuing to oppose the proposals.<\/p>\n\n\n\n
Air freight capacity from China remains under significant pressure, with flights heavily overbooked and delayed ahead of the Mid-Autumn Festival and Golden Week. Demand is also strengthening towards the traditional Q4 peak, resulting in rising spot rates and tighter capacity expected through October.<\/p>\n\n\n\n
The Vietnam-Europe market is tightening, while capacity from Cambodia remains comparatively stable. Sri Lanka’s peak season continues, with strong demand supporting higher rates and constrained capacity. Rising aviation fuel prices are also adding further cost pressure.<\/p>\n\n\n\n
The market is expected to remain firm through October, and early booking continues to be recommended for time-sensitive cargo as Q4 demand develops and airlines transition from summer to winter schedules. Ongoing disruption to ocean freight also creates the potential for time-sensitive cargo to move to air freight to meet Black Friday and Cyber Monday deadlines, which could place additional pressure on air capacity and rates during the Q4 peak.<\/p>\n\n\n\n
European destination ports remain broadly stable, although some delays have been reported this week. The risk of berth congestion is expected to increase over the coming weeks as vessel arrivals become more concentrated following earlier schedule disruption and the increased use of Suez routes.<\/p>\n\n\n\n
For further information regarding specific shipments or trade lanes, please contact your usual company representative.<\/p>\n","protected":false},"excerpt":{"rendered":"
EU Deforestation Regulation (EUDR) The EU Deforestation Regulation (EUDR) will […]<\/p>\n","protected":false},"author":9,"featured_media":304565,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[223],"tags":[],"postlocation":[],"posttype":[],"postservice":[],"class_list":["post-339683","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-service-updates"],"acf":[],"yoast_head":"\n