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:
- Operational disturbances arising from the reconfiguration of services under new alliances continue into the second half of the year, continuing to impact movers' ability to obtain preferred sailings.
- Uncertainty due to Trump-imposed tariffs has seen a reported 50% reduction in volumes on trans-Pacific trade, and as a result, some carriers are making short-notice alterations to services.
- Tensions in the Straight of Hormuz may result in delays and surcharges for Middle East shipments.
- London Gateway, alongside many other European and Asian transhipment ports are congested, causing delays.
- The combined operational issues are impacting carriers' ability ot maintain advertised transit times, with delays and container rollovers becoming common.
- Regional Updates
- North America: Service changes and capacity reductions are causing rate increases and delays.
- Eastbound Trades: Longer transit times due to Cape of Good Hope diversions; Middle East services are severely impacted. Congestion remains in transhipment ports in Asia.
- Southbound Trades: Reliable services but reduced port coverage in Africa due to main port congestion and poor on-carrying infrastructure.
- Latin America: Reliable services, but clearance delays may lead to storage charges.
- Shipping Line ONE LINE has confirmed they will not ship personal effects of assignees holding Russian passports. Other shipping lines have yet to confirm their positions.
- The BAR recommends that Li-ION batteries are no longer included in shipments due to the risk of fire and complex shipping declaration requirements.
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.
