Household Goods Shipping Conditions Update - July 2024

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:

Suez Canal Diversion

• The diversion around the Cape of Good Hope due to conflict in the Red Sea region continues to run well. 
• Longer transit times and operational surcharges on these routes are now the norm until passage through the Suez Canal is safe again (currently no estimate on timescale)
• Rising shipping expenses for outbound cargo from Asia could potentially affect various routes, leading to limited space for exports from Europe, especially to North and South America, due to capacity reallocation.
• The situation remains very fluid with shipping lines having to quickly react to unexpected developments.

Panama Canal Drought

• The challenges resulting from the Panama Canal drought, which had initially caused delays for shipments passing through, have now shown signs of improvement, leading to shorter delays for shipments to the US West Coast.

With both updates on the Suez and Panama Canal the most noticeable issue to those moving is the increased notice advisable to secure space on a vessel, and understanding the expectations of possible extended transit times/delays. 

Container Imbalances

• The shortage of import shipments arriving at UK and European ports continues to create challenges for shipping lines. There is a lack of empty sea containers available for export, which is causing last-minute changes to schedules as bookings are rolled to later vessels by the shipping line. Unfortunately, this is beyond the control of the mover.
• Container imbalances can also sometimes affect the quality of the containers supplied by the shipping line. If a container provided is unsuitable for its intended purpose, the mover will be forced to reject it to protect the shipment. Waiting for a replacement container can cause delays to the loading date.

Freight Rates

• As reported in the June update, freight rates on some traffic lanes have fallen so far that shipping lines countermeasures (such as slow steaming/reducing vessels) are encouraging freight rates on those lanes to rise. 
• Members of the BAR Overseas Moving group continue to benefit from negotiated annual freight contracts to smooth the impact and provide a degree of stability.
• The BAR expect the uncertainty to gradually settle in the coming months. 

Russian Passport Holders

• Shipping line "ONE LINE" has recently confirmed that they will NOT transport consignments owned by Russian passport holders. The BAR are seeking clarification from other shipping lines on their stance.
• Russian passport holders must liaise with their moving company carefully when planning their relocation. Ensuring that the chosen shipping line can successfully clear their goods at the destination is essential to avoid potential disputes and significant storage charges.

Shipments Containing Fridges/Freezers

• The BAR has had some reports that they are experiencing issues with shipping lines when loading fridges/freezers. Several shipping lines have advised the BAR that these can be carried, with the caveat that the shipper is responsible for declaring them as hazardous if necessary.
• Your chosen moving company should advise if any items contained in your assignee's shipment require additional declarations. 

Market Availability

Below is a quick summary of the key points to be aware of for routes departing Europe:

Westbound trades from Europe (USA, Canada, Caribbean, and Latin America):

Southbound trades from Europe (South, East, and West Africa):

Changes to Costs

• 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. 

Lithium-Ion Batteries

• Shipping lines are so far inconsistent in their rules regarding the inclusion or exclusion 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 offence 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 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: 

• 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.