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.**
Key UPdates:
- Ongoing operational challenges caused by the implementation of new service alliances continue to disrupt access to required sailings. Additionally, ongoing tariff uncertainty in the US has resulted in an estimated 50% reduction in transpacific trade volumes, prompting many carriers to alter services at short notice.
- Tensions in the Strait of Hormuz persist, and any closures could result in delays and surcharges for shipments bound for Middle East destinations.
- Congestion remains an issue at London Gateway, as well as at several key transshipment ports across Europe and Asia, causing delays that fall outside movers’ control.
- A new Low Water Surcharge (LWS) has been introduced by some shipping lines for cargo routed to Canada via the St Lawrence River, due to reduced water levels that limit vessel capacity.
- Advertised transit times continue to be affected by these evolving issues, with significant variation depending on vessel selection.
- Restricted capacity on the transatlantic trade lane is still driving up rates and resulting in more frequent delays and cancellations.
- There is still no clear timeline for when safe passage through the Suez Canal will resume. Diversions around the Cape of Good Hope remain effective, and most schedules are being maintained; however, omitted stops in the Middle East continue to disrupt services to this region. Vessels that do call at Middle East ports are operating at extremely high capacity, leading to backlogs. Mediterranean services are similarly affected, with port omissions and longer transit times due to Suez Canal restrictions.
- Shipping line ONE LINE maintains its position of not accepting personal effects shipments from Russian passport holders. Other carriers have yet to clarify their stances, so Russian passport holders are advised to use caution when planning moves, as any disputes may lead to significant storage charges.
- The British Association of Removers continues to recommend that Lithium Ion batteries are not included in shipments, due to fire risk and the complexities of declaration policies and surcharges, as well as the risk of delays caused by inconsistent rules across shipping lines.
For the latest guidance in full please click below.
KEY ACTIONS to MiNIMISE RISK
The combined impact of the above challenges on relocating employees can be summarised as follows:
- When a moving company provides a quote this is based on services currently offered. If a shipping line later removes that sailing an alternative will need to be re-booked which may have a higher cost or longer transit time.
- Longer lead times and increased notice may be required to secure vessel space.
- Shipping lines may implement surcharges at any time to pass their addiional costs on to the consumer, with short notice.
- 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.
