Sea freight capacity from Asia remains under pressure, with carriers continuing to manage space closely. The UK-India Free Trade Agreement has been confirmed this week, marking an important development for customers moving goods from India.
UK-India Free Trade Agreement to Take Effect from 15 July
The UK and India have confirmed this week that their landmark Free Trade Agreement will enter into force on 15 July 2026. The government has described it as the most comprehensive trade deal India has ever brought into force.
The agreement is significant for businesses sourcing from India, particularly across product areas such as textiles, garments, leather goods and footwear. It is also expected to support wider trade growth between the UK and India, creating new opportunities for businesses operating across both markets.
Eligible shipments entered from 15 July will be able to use the new Free Trade Agreement arrangements, allowing businesses to benefit from tariff cuts where the relevant requirements are met.
With 28 days to prepare, customers moving goods from India should now review products, documentation and customs processes ahead of implementation.
Capacity Pressure Continues Across Sea Freight
There has been a positive development in the Middle East following diplomatic progress between the US and Iran, with some shipping activity now reported through the Strait of Hormuz. However, conditions remain uncertain, fuel prices remain elevated, and the market remains sensitive to any further disruption. Fuel-related surcharges therefore remain under review, and wider shipping and inland costs continue to be affected by volatility in energy markets.
Space from Asia remains under significant pressure, with carriers continuing to manage capacity closely across key routes. Blank sailings, vessel changes and wider network adjustments are still affecting the amount of space available and the ports where capacity can be secured. At the same time, demand from Asia remains strong, which is continuing to place pressure on already restricted capacity and keeping rates high. Further blank sailings are expected, so we anticipate challenging space conditions to continue over the coming weeks.
There has been no significant change to the service position this week. Arrivals are continuing to move relatively well and we are not currently seeing any significant congestion affecting UK ports. However, delays in Rotterdam and other parts of Europe remain an area to watch. While the impact has not yet materialised for UK arrivals, we do expect some knock-on effects to become more visible over the next few weeks as more heavily laden vessels begin arriving into European ports.
If you have any questions or concerns regarding your shipment, please don’t hesitate to contact our Customer Service Team on 01376 533039 or email [email protected].
