Welcome to the GUK Magnetics December Market Update. This update provides an overview of key developments, helping you stay informed and prepared for whatever the market brings.
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Trade Policy: Navigating the Rare Earth Window
The temporary suspension of strict rare earth export controls remains the most significant development for high-tech and magnet-reliant manufacturing.
With the tighter restrictions suspended until November 2026, December is a vital month for UK importers to rebuild safety stocks of Dysprosium and Terbium. Taking advantage of the eased general license regime now is prudent, should geopolitical tensions shift the policy again in 2026.
While the license process is currently simplified, Customs in both China and the UK remain hyper-vigilant regarding “Dual-Use” declarations. Precise HS code classification is mandatory to avoid shipments being flagged for manual inspection.
Exchange Rate
Worst GBP to USD exchange rate in November 2025: 1.3021
Best GBP to USD exchange rate in November 2025: 1.3245
Average GBP to USD exchange rate in November 2025: 1.3147
Port Operations
The maritime sector is currently defined by a “holding pattern” at elevated pricing levels. Carriers are focusing on protecting the rate gains made in Q4 to enter the 2026 contract season from a position of strength.
The Cape of Good Hope routing remains the standard. With transit times still extended by 10–14 days, ocean freight booked in December is now strictly for post-Christmas inventory and early Q1 replenishment.
Blank sailings continue to be the primary tool for capacity management. As carriers pull vessels to undergo maintenance or balance supply before the pre-Chinese New Year rush (expected in late January), securing space on preferred vessels requires at least 3–4 weeks of lead time.
Spot rates have found a “floor” well above 2024 averages. We expect these levels to hold through December, as the industry prepares for the traditional pre-CNY (Chinese New Year) rate spike in January.
Airport Operations
Air freight has reached its annual peak in terms of both utilization and cost. The urgent need to refill retail shelves and the boom in online shopping have pushed air freight costs to a year-high peak, allowing airlines to charge top prices for limited space.
Direct-to-consumer platforms continue to monopolize belly-hold and freighter capacity out of South China and Hong Kong. This “crowding out” effect has forced traditional commercial shippers into expensive charter options or premium-tier express services.
Rates are at their highest point of the year. Expect no relief until the final week of December, as companies pay whatever is necessary to bridge supply chain gaps created by ocean delays.
Major hubs like Heathrow (LHR) and Shanghai (PVG) are experiencing congestion. Even after a flight lands, expect 48–72-hour delays in ground processing due to the sheer volume of peak-season imports.
Commodity Rates
At GUK Magnetics, we understand that today’s supply chain landscape demands flexibility and foresight. Our team is ready to help you plan shipments, manage risks, and ensure deliveries arrive with as little disruption as possible.
If you’d like to review current orders, discuss future requirements, or explore strategies to build resilience into 2026, please get in touch – we’re here to support your business at every stage. Contact us today.
