While the UK is not a direct party to the EU–Mercosur agreement, its impact on global freight flows and supply chain dynamics is expected to be felt more widely. Rhenus outlines what this means in practice:
Jan Harnisch, Member of the Board & CEO Air & Ocean at Rhenus Group, comments: “The EU–Mercosur agreement will change trade between Europe and South America in a very practical way. Removing tariffs on most goods will make this corridor faster and more competitive, and that’s on a route that already carries significant volume across a wide mix of industries.
What matters from an operational perspective is what actually moves along that corridor. European exports tend to be higher value goods like machinery, chemicals and pharmaceuticals, often moving through major hubs such as Rotterdam or Hamburg. In the opposite direction, it’s large volumes of agricultural products and raw materials coming into Europe through ports like Santos or Buenos Aires. These flows are not straightforward. They require different handling models, from bulk shipments through to temperature-controlled logistics, and that complexity doesn’t disappear with tariff reductions.
As volumes increase, the pressure will be felt across the whole supply chain. Ports will need to handle greater throughput, freight pricing will adjust, and there will be a growing need for flexible, multimodal transport solutions. At the same time, customs will remain a critical factor. Lower tariffs don’t remove administrative complexity. Rules of origin, quotas and compliance requirements still shape how goods move, and if they’re not managed carefully, they can slow down flows or add unexpected cost.
Even for markets outside the agreement, including the UK, there are indirect effects to consider. Shifts in trade volumes and sourcing strategies can influence capacity, pricing and routing decisions across global networks. We are already seeing companies reassess how and where they move goods, with more focus on building resilience and maintaining flexibility in their supply chains.
For logistics providers, this is less about a single policy change and more about how trade patterns evolve over time. The opportunity is clear, but so is the need to adapt. Infrastructure, operations and regulatory frameworks will need to keep pace with demand if trade flows are to become more predictable, efficient and resilient in the long term.”
The post EU–Mercosur agreement to drive shifts in freight flows appeared first on Air Cargo Week.
Go to Source
Author: Edward Hardy
