Each month the British Association of Removers (BAR) publishes an independently produced overview of the global shipping market out of the UK. It gives HR and Global Mobility teams an objective view of the challenges, cost implications and risks that may need planning for when moving employees internationally.
Please note this information applies to all UK international removers and is not unique to Bournes.
Headlines at a glance
Short on time? Here is the standing picture this month, followed by the points worth closer attention. You can download the full PDF for the complete detail.
- The conflict in the Middle East continues to disrupt shipping in the region. Interim ceasefires and diplomatic talks are periodically stabilising routes through the Strait of Hormuz, but booking suspensions and costly diversions remain common.
- Some services into the Middle East have been reintroduced using alternative routings, though these are very fluid and are being withdrawn and reinstated as congestion builds at the revised transit ports.
- Eastbound sailings continue to route around the Cape of Good Hope. Longer transit times remain the norm and there is still no estimate for when passage through the Suez Canal will be safe.
- Fuel (bunker) increases continue to push freight and inland haulage costs higher, and carriers have now begun adding operational surcharges that cover pass-through costs from terminals and feeder operators.
- UK road haulage has improved as driver availability recovers, and most shipping lines are now withdrawing their Driver Retention Surcharge.
- Transit times remain highly variable. As an example, Southampton to Sydney can range from 56 to 89 days depending on the vessel, before any delays are counted.
- Standing conditions continue around ICS2 data requirements, lithium-ion batteries, the Russian passport restriction on one carrier, and currency and fuel adjustments. All are covered in full below.
The market in more detail
Middle East
Disruption in the region continues, and while some services have been reintroduced through alternative routings, these are unstable. Carriers are withdrawing and then reinstating them, largely because the revised transit ports are not equipped for the volume being diverted to them. New routings often involve an overland leg, which carries high and continuously changing costs, so long-term quotes are not possible and pre-conflict rates are no longer being honoured. New shipments also carry a risk of being stranded at alternate ports under end of voyage or Force Majeure terms if the situation escalates.
For Global Mobility teams, this means moves to the Middle East should be treated with caution and built with time and budget contingency. Based on the update provided, costs quoted now may not hold to departure.
Costs and surcharges
Alongside War Risk and Emergency Fuel surcharges, carriers continue to implement operational surcharges linked to terminal and feeder costs. These can be applied immediately and may not have been included when a mover first quoted, so a final invoice can differ from the original estimate. Additional charges are also still being invoiced after a container has been discharged, sometimes directly to the destination agent.
North America (USA, Canada and Mexico)
Carrier alliance changes continue to reshape routes and port calls, with most US services now consolidated through Southampton and the direct US discharge ports still changing. Reduced capacity means demand on moves to North America is outstripping vessel space, which continues to push rates up and makes delays, rolled containers and cancellations more likely. The practical effect for anyone moving is that more advance notice is needed to secure space.
Asia, Oceania and India (eastbound from Europe)
Routing around the Cape of Good Hope is well established and schedules are generally being followed, so longer transit times should be treated as the norm. The omission of Middle East calls on some Asia services is now beginning to affect this region more noticeably, with those services running very full and carrier realignments creating a backlog. Moves to Oceania remain exposed to congestion at Asian transhipment ports, where containers can be rolled more than once.
Mediterranean
Services into the Mediterranean are being limited, as vessels can no longer continue onward through Suez and instead have to turn back. This is causing some ports to be omitted and transit times to lengthen.
Africa (southbound from Europe)
No change to the core position. Where a line offers a service on a given route it is usually reliable, but many inland destinations served by overland on-carriage have been removed from schedules because of port congestion and limited infrastructure. Coverage remains reduced across much of the region, particularly the Indian Ocean islands.
Latin America and the Caribbean
No change here either. Ocean services are generally reliable, but customs clearance and release can take longer than the free storage a line allows, so additional storage charges may build up at destination even when a shipment arrives on time.
Regulatory and operational developments
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ICS2, the EU's pre-arrival safety and security system, remains in force for any shipment whose vessel docks at an EU port after leaving the UK. Movers may therefore need to request more, sometimes personal, information, which sits with the EU or shipping line rather than the mover. The EU has added household goods and personal effects to its watch list. Legitimate shipments should not be affected, but a valid commodity code may occasionally be rejected, which can cause delays while a solution is worked through.
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Container equipment quality remains a concern, largely because of the extra containers needed to serve Asia via the Cape of Good Hope. Movers are more often having to reject unsuitable containers on arrival, which can cause missed sailings and additional haulage charges through no fault of the mover.
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On specific items, one carrier (ONE Line) has confirmed it will not ship the personal effects of assignees holding Russian passports, and BAR is still checking other carriers' positions. Separately, Hapag Lloyd and ONE Line have confirmed they can carry fridges and freezers, but the shipper is responsible for declaring them as hazardous where required, and any misdeclaration risks fines or removal of the goods from the container.
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Lithium-ion batteries remain a complicated area. Acceptance is inconsistent between carriers and decided on a shipment by shipment basis, and BAR continues to recommend they are not shipped. Where they are included, the shipment is likely to need a hazardous cargo declaration with surcharges, and a misdeclaration is treated as a serious offence, currently carrying fines of around US$30,000 and the risk of the goods being confiscated.
Cost, currency and fuel
Freight and ancillary charges are usually set by carriers in US Dollars, Euros or local destination currency and converted to Sterling at the sailing date, so a final invoice can differ from the quote once the actual exchange rate is applied. This is outside the mover's control. Fuel (bunker) reviews continue to feed into freight costs, with recent examples adding as much as US$350 per container.
No UK port strikes are currently scheduled, though future action can always affect clearance and delivery times.
Key actions for Global Mobility
- Plan and confirm move dates as early as possible so movers can secure space on the most suitable sailings.
- Build time and budget contingency into programmes, particularly for the Middle East and eastbound moves.
- Prepare stakeholders and assignees for the possibility of short-notice surcharges and rate changes that sit outside the mover's control.
- Keep close, regular contact with your shipping providers on the routes that matter most to you.
- Review your lithium-ion battery policy and agree exception handling with your provider.
- Expect possible requests for additional personal information under ICS2, and check carrier restrictions early for any assignees holding Russian passports.
For the full detail, download the BAR Global Shipping Update.
If you would like to talk through how any of this affects your current or upcoming moves, our Corporate Relocation team is always happy to help:
