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Household Goods Shipping Conditions Update - December 2024

Posted by By Bournes Relocation Solutions - December 5, 2024

Shipping Industry Update

This monthly update, provided by the British Association of Removers gives a current overview of the global shipping market out of the UK. It provides HR and Global Mobility Managers with a useful and unbiased understanding of the potential challenges, cost implications and risks that may need to be planned for. 

**Please note this information applies to all UK international removers and is not unique to Bournes.** 

Recent Developments 

Environment Agency Inspections

On 22nd November 2024, the UK moving industry was notified of an outbound container containing household goods that was halted at a UK port by the Environment Agency. The container was classified as potentially transporting waste due to the electrical items within the shipment not having undergone Portable Appliance Testing (PAT). Although the container was eventually released after the moving company provided the necessary evidence, the delay and incurred storage fees were considerable.

As a result, the BAR is engaging with the Environment Agency to clarify the guidelines for transporting personal effects and to find a solution to prevent future targeting of household goods shipments. Nonetheless, the Environment Agency retains the right to inspect and stop any container, so both moving companies and consumers should be aware that this is a potential occurrence.

Shipping Line Alliances

Shipping lines form "alliances" to share vessels on specific routes, and these alliances are changing for 2025. Hapag-Lloyd has entered into a long-term agreement with Maersk Lone, starting in February 2025, known as the Gemini Cooperation, and will exit their current alliance, "THE Alliance," at the end of January 2025. The remaining partners of "THE Alliance," Yang Ming, HMM, and ONE, have rebranded themselves as the "Premier Alliance" and have established a vessel-sharing agreement (VSA) with MSC, covering nine Asia-Europe services. Additionally, MSC, which currently partners with Maersk on the 2M service, has announced a new standalone east-west service network.

These changes are expected to cause operational disruptions during the transition period, and issues have already begun to arise as shipping lines adjust their vessel deployments. Some ports may no longer be served, routing and transit times may change and increase, and vessel frequency or capacity might be altered. Therefore, both moving companies and consumers should be aware of these potential changes in the coming months.

ISC2 EU Requirement

Shipping lines are continually revising their documentation procedures, with the latest update being the implementation of ISC2. This EU mandate requires that any shipment docking at an EU port after leaving the UK must provide details about the shipper. Consequently, consumers should be prepared for moving companies to request additional personal information, though this requirement is dictated by the EU or the shipping line and is beyond the control of the moving companies.

Russian Passport Holders

Shipping Line ONE LINE has confirmed that they will not ship the personal effects  Russian passport holders. The BAR are communicating with other shipping lines for their positions, but Russian passport holders need to be cautious when planning to move and ensure that the shipping line used can clear their goods at destination. The accrued storage charges should there be a dispute could be significant.

Shipping Fridges and Freezers

The BAR have heard of some shippers experiencing issues with shipping lines when loading fridges and freezers. Hapag Lloyd and ONE Line have confirmed they can carry them, however, they caveated this acceptance, with the shipper being responsible for declaring them as hazardous if and when necessary. Consequently, any misdeclaration could be met with fines, and or the need to remove the goods from the container.

Key regional UPdates:

North America from Europe (USA, Canada, Mexico)

  • Shipments to the USA have generally recovered following the 3 day strike by the USA Longshoremen in Early October.  Related disruption surcharges have been removed.
  • The Trans-Atlantic shipping trade still faces significant challenges due to reduced capacity by shipping lines. This oversubscription has led to increased shipping rates, delays, and more frequent cancellations.
  • Increase notice is likely to be required to secure vessel space and you should be prepared for possible delays outside of the mover's control if containers are 'bumped' to a later vessel or canceled. 
  • Despite having negotiated annual freight contracts, BAR movers occasionally must accept new surcharges to secure their space allocations. For instance, Hapag Lloyd has announced a Peak Season Surcharge (PSS) for the transatlantic trade, effective from October 1, 2024. This will add $300 per 20-foot container and $400 per 40-foot container to freight costs.

Eastbound from Europe (Asia, Oceania, India, Middle East)

  • The Suez Canal diversion around the Cape of Good Hope due to conflict in the region is still working well. We do not have an estimate as to when it will be safe to return to normal routing so longer transit times should now be expected as the norm. 
  • The omission of Middle East calls on some shipping lines Europe > Asia services is putting increased pressure on services to the region with Middle East ports struggling with capacity and a backlog of shipments. 
  • BAR members are also seeing congestion in Transhipment ports in Asia. 
  • Increase notice is likely to be required to secure vessel space and you should be prepared for possible delays outside of the mover's control if containers are 'bumped' to a later vessel or canceled. 
  • Increasing freight costs for Asia Exports is now impacting other routes, and capacity reallocation is causing space challenges for other routes, especially the Americas. 

Southbound from Europe (South, East, West Africa)

  • No change.
  • Where services are offered to this region they remain reliable.
  • Some hinterland destinations served by overland transport from a main port have been removed from shipping line schedules, causing a reduction of the main destination port of call coverage across much of the region, particularly the Indian Ocean Islands. 

Latin America from Europe

  • No change.
  • Where services are offered to this region they remain reliable.
  • Some delays in the clearance and release of containers are exceeding free storage offered by shipping lines, which may result in accrued storage charges.

ongoing challenges

Changes to Costs

  • Increased freight rates for export shipments from Asia is now impacting other routes as capacity reallocation has a knock-on effect on exports from Europe. 
  • Exchange rate fluctuations and shipping line fuel (bunkering) cost reviews can impact the final sea container freight cost. In some recent bunkering examples some movers have seen increases up to US$350. 

Quality of Container Equipment

The quality of container equipment used by shipping lines has declined, primarily because of the increased number of containers required to service Asia via the Cape of Good Hope. The instances of receiving containers unsuitable for transporting household goods, which movers must reject, have significantly increased. Although a replacement container is typically provided, this can lead to delays, missed vessels, and extra haulage charges, all beyond the mover's control.

Lithium-Ion Batteries

  • Shipping lines are still yet to agree on consistent rules regarding the acceptance of Li-ION batteries which have been widely reported to increase risk of fire (examples include e-bikes/scooters, cordless power tools, laptops etc). 
  • The BAR Overseas group recommends that removable Li-ION batteries are NOT SHIPPED and are instead removed and replaced at destination. If they are included the shipment may need to be declared as Hazardous cargo which will require additional documentation processes and substantial freight surcharges, if permission is granted. 
  • Failure to declare batteries whether intentionally or in error is a serious offense under maritime law and could lead to substantial fines for the customer (approx US$30,000) and risk of confiscation/disposal of consignment. 

KEY ACTIONS to MiNIMISE RISK

The combined impact of the above challenges on relocating employees can be summarised as follows:

  • Longer lead times and increased notice may be required to secure vessel space.
  • Increased likelihood of delays due to containers being rolled or rejected.
  • Freight rate volatility still exists but is expected to settle in the coming months.

Recommended Actions for Global Mobility: 

  • Highlight any Russian Passport holders to your shipping provider to avoid complications with shipping lines. 
  • Plan in advance wherever possible, communicating moving dates early to allow sufficient time for booking vessels. 
  • Communicate closely with your shipping vendors to stay updated on changes in schedules, routes and capacity for your key lanes.
  • Ensure transparency by making sure you or your mover are discussing potential delays with relocating employees to manage expectations. 
  • Consider updating your policy to address the challenges with Li-ION batteries to prevent complications and additional costs (or at least ensure your mover is communicating this clearly with employees). Discuss with your mover how to handle any exceptions, such as batteries which cannot be removed. 

These actions can help minimise risk of additional costs or a poor service experience for your employees. 

If you require any further detail or have questions please don't hesitate to contact our Corporate Relocation Team

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