In the ever-evolving world of global shipping, understanding the current market conditions is crucial for anyone planning an international move. At John Mason International, we are committed to keeping you informed and prepared for the journey ahead. The British Association of Removers (BAR) has recently released an update on the global shipping conditions as of March 2024, and we’re here to help you navigate these waters.
State of the Market: A Fluid Situation
The global shipping industry is currently facing unprecedented challenges. The ongoing uncertainty in the Red Sea has led shipping lines to reroute their vessels around the Cape of Good Hope, avoiding the Suez Canal. This change has implications for transit times, which have increased by over 14 days, and has introduced a higher likelihood of delays and rolled cargo. Additionally, shipping lines have implemented emergency surcharges to cover these added costs, affecting the overall shipment costs for consumers.
The Impact of Surcharges and Delays
Shipping lines have introduced various surcharges, such as “war risk,” “Equipment or operational recovery,” and “PSS,” to recover additional costs. Although these surcharges have decreased since their introduction, their impact on shipment costs remains significant. The resolution of these surcharges and the return to normal operations are anticipated in the latter half of the year, contingent on the situation in the Suez Canal stabilising.
Preparing for Increased Transit Times and Notices
With the current challenges, securing space on a vessel has become more complex, requiring increased notice—up to 4-6 weeks for some destinations. The likelihood of containers being rolled or delayed has also risen. We advise planning your move well in advance and working closely with us to ensure a smooth transition.
Market Availability and UK Haulage
While the acceptance of container bookings from the UK has improved, the demand still outstrips available space on certain routes. Customers moving to or from areas affected by the Suez Canal diversions, the Panama Canal delays, or other regional challenges should be prepared for longer transit times and potential surcharges.
The situation with UK haulage has seen improvement, with the easing of driver shortages and the withdrawal of the Driver Retention Surcharge (DRS). However, challenges remain in direct loading at residences, especially in congested cities or areas with difficult access.
Navigating Currency Exchange and Fuel Cost Changes
Shipping costs are typically quoted in foreign currencies, leading to potential adjustments in the final invoicing based on exchange rates at the time of dispatch. Additionally, fluctuations in fuel costs have led to increased freight costs, further impacting the overall cost of moving.
Lithium-Ion Batteries: A Note of Caution
The handling of lithium-ion batteries in shipments is complex due to their increased fire risk. We strongly recommend against shipping these items. If necessary, they must be declared as hazardous cargo, which may incur additional surcharges and complicate the booking process.
In Closing
We understand that the current global shipping conditions present challenges for those planning an international move. At John Mason International, we are dedicated to providing you with the expertise and support needed to navigate these challenges. Our team is always here to answer any questions and to ensure your move is as smooth and efficient as possible.
For the most up-to-date information and assistance with your international moving needs, please do not hesitate to contact us.
