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 remains at London Gateway port and many other transhipment ports in Europe and Asia, meaning shippers may experience delays beyond the mover's control.
- Shipping line's ability to maintain advertised transit times remains a challenge, including significant variance between vessels (For example, a sailing from Southampton to Sydney, Australia, can take anywhere between 56 and 89 days).
- Canada - The Low Water Surcharge (LWS) applied by some shipments via the St. Lawrence river continues to be implemented due to shipping lines adjusting rates to compensate for reduced capacity.
- North America – Ongoing changes related to new shipping line alliances are resulting in adjustments to port rotations and the range of services previously offered. Additionally, the reduction of available capacity by shipping lines means the transatlantic corridor continues to face high demand, leading to increased rates, frequent delays, and a higher likelihood of cancellations than usual.
- Eastbound from Europe - Diversion around Cape of Good Hope due to regional conflict remains and operates effectively, albeit with the longer transit times that have now become the norm. Omission of Middle East calls on some services continues to severely impact service to the region.
- 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.
