Welcome to the Goudsmit UK October 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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Market Outlook:
October presents a dual challenge for the China-UK freight corridor: managing the immediate backlog from the extended Golden Week holiday and navigating the compounded congestion caused by the recent Super Typhoon Ragasa. Carriers and importers must now focus on securing space and preparing for a prolonged recovery period as the traditional peak season for major Western sales events (Black Friday, Christmas) approaches.
Rare Earth Restrictions (Magnets) China’s export licensing controls on strategic rare earth elements (such as samarium, dysprosium, and terbium) remain strictly enforced.
- Licence Process: The licence approval time continues to be estimated at 45 working days, with many applications now exceeding this guideline. Strict adherence to documentation requirements is critical, as any errors will trigger delays.
- Customs Checks: Random checks on magnetic products are becoming the norm, which has previously caused 2-3week delays at port.
- Mitigation: We continue to advise building inventory buffers for essential rare earth components and consolidating orders to reduce the administrative burden of multiple licence applications.
New EU/UK Entry Requirements: New digital customs procedures are taking effect in key European entry points (e.g., German ports implemented the Secure Release Order on October 1st). Although separate from China’s regulations, these changes in destination ports may affect inland delivery speed for cargo arriving in Northern Europe.
At Goudsmit, 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.
Exchange Rate
Worst GBP to USD exchange rate in September 2025: 1.3344
Best GBP to USD exchange rate in September 2025: 1.3649
Average GBP to USD exchange rate in September 2025: 1.3498
Port Operations
The convergence of the National Day holiday and the Mid-Autumn Festival created an extended 8-day shutdown (October 1–8), which has amplified the customary post-holiday congestion. This backlog is compounded by the lingering disruption from Super Typhoon Ragasa in late September, which caused some port closures and significant pre-holiday delays.
Port Congestion: Container backlogs at major Chinese hubs are significant, leading to a strained recovery period. Port operations, while resumed, are working through the accumulated volume.
Transit Times: End-to-end transit times on the Asia-Europe Lane remain long, due to continuous rerouting via the Cape of Good Hope to avoid Red Sea security issues.
Rates: While the immediate rush of the pre-holiday season has passed, rates are expected to remain volatile and at elevated levels as carriers manage the reduced capacity caused by vessel rerouting and blank sailings designed to stabilise schedules. Importers should continue to expect General Rate Increases (GRIs) in the coming weeks to cover rising operational costs.
Airport Operations
Space: Air freight capacity is severely constrained as the holiday backlog clears and manufacturers rush to move time-sensitive inventory ahead of major Q4 retail events. This follows a period of significant flight cancellations due to Typhoon Ragasa, which further diminished available space.
Rates: Prices remain firm and at a premium. Rates on key China–Europe lanes have shown upward momentum towards the end of September and are expected to remain consistently above throughout the month, with sharp spikes likely as capacity is bid up.
Transit: Businesses should factor in potential delays for cargo caught in post-holiday airport backlogs.
Commodity Rates
Commodity prices saw mixed movements in September 2025. Aluminium continued its steady upward trend, reaching $2.70/kg — its highest level of the year so far.
Cobalt recorded a significant increase, rising to $42.13/kg from $35.29/kg in August, extending its strong gains seen throughout Q3. Copper climbed to $10.74/kg, while neodymium eased slightly from August’s spike, averaging $100/kg after peaking at $105/kg.
Prices for neodymium and samarium continue to be influenced by China’s rare earth export restrictions, which are contributing to tighter supply conditions. Nickel remained broadly stable at $15.40/kg, while zinc edged higher to $2.98/kg. Samarium saw a notable decline to $10.11/kg despite ongoing supply constraints. Brent crude oil held steady at $68 per barrel, unchanged from August.
Thanks for reading the Goudsmit UK Market Update. At Goudsmit UK, we specialise in providing high-quality magnets and engineered components tailored to meet your specific needs.
Our team of experts is dedicated to helping you find the perfect magnetic solutions for your projects. For more information about our products and services, contact us today.
