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:
- Congestion continues at London Gateway Port as well as at several key transhipment hubs in Europe and Asia, leading to potential delays that are outside the mover’s control.
- Canada – Shipping lines continue to apply the Low Water Surcharge (LWS) on certain shipments via the St. Lawrence River, reflecting ongoing rate adjustments to offset reduced capacity on this route..
- Maintaining consistent transit times as advertised by shipping lines remains difficult, with notable variation between vessels. For instance, transit from Southampton to Sydney, Australia, may range from 56 to 89 days.
- North America – Recent changes among global shipping alliances have resulted in revised service structures, with ports of loading and discharge being amended and several carriers discontinuing previously scheduled port calls or services. A significant number of shipping lines are now concentrating their US-bound services out of Southampton, prompting further adjustments to US discharge ports as these updated service patterns are phased in. Simultaneously, persistent reductions in overall shipping capacity are placing continued strain on the transatlantic trade lane, where vessel space remains in high demand and frequently outstripped by the volume of shipments. This ongoing imbalance is contributing to sustained upward pressure on freight rates, alongside a heightened incidence of shipment delays and booking cancellations.
- Eastbound from Europe - The established diversion via the Cape of Good Hope for eastbound shipments, necessitated by ongoing regional conflict, has now become routine, with most carriers adhering to revised schedules. For eastbound trades, extended transit times are now standard, and there remains no confirmed timeline for the safe resumption of Suez Canal transits. At the same time, the exclusion of Middle East port calls from certain Asia-bound services is increasingly disrupting connectivity to the region. Vessels that continue to serve Middle East ports are operating at full capacity, and void sailings resulting from service realignments are compounding shipment backlogs. Oceania-bound shipments continue to face delays due to persistent congestion and repeated container rollings at Asian transhipment ports. Mediterranean services are also restricted, as carriers omit ports and extend transit times because onward passage through Suez is unavailable.
- Shipping Line ONE LINE continues to advise that they will not ship personal effects of assignees holding Russian passports. Other shipping lines have yet to confirm their positions.
- The BAR continues to highlight its recommendation 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.
