John Mason International’s overseas agents in Brazil have advised that Brazil’s main container port, the Port of Santos, is currently experiencing increased volumes of traffic which is leading to customs clearance delays for import and export shipments. All consignments are physically checked at the port by the Brazilian Customs Agency and there currently aren’t enough customs officers at the port to deal with the higher volume. The port does not have scanners which would usually speed up the process.  

If you presently have a shipment which is inbound for Brazil, it may take slightly longer than usual for your consignment to clear customs as a result of the above. For further information, please contact your International Move Manager.

There may be possible delays and disruptions to shipments bound for China this year due to the World Expo which is being held in Shanghai from the 1^st May until the 31^st October 2010. The length and type of delays are likely to be similar to when Beijing hosted the Olympics in 2008.

John Mason International’s overseas removals agent in China has informed us that there will be inspections to all air consignments during the World Expo and that there will be zero tolerance with regard to the importation of prohibited items.

The World Expo is a non-commercial, large-scale exposition which aims to promote international trade and co-operation among countries. Over 70 million visitors from China and around the world are expected to visit the event which has over 200 exhibitors.

The invention of the steel shipping container in the 1950s changed the world forever. A new invention, the collapsible steel container is now on the market. Is it possible that this new innovation could revolutionise the shipping industry in the same way as the steel container did many years ago?

The Dutch based company Cargoshell have launched their fibreglass composite folding containers onto the market place although tests are currently still being undergone in order to make sure the containers are strong enough to meet international standards for worldwide shipping.  

The flat-pack concept enables the new containers to collapse by 75% of their volume. This has obvious efficiency and space saving benefits for international shipping. They also carry 25% less weight than standard shipping containers, therefore they allow for reduced fuel consumption on shipping vessels and also when transported by vehicles.

There is also another key difference between collapsible shipping containers and standard containers. Instead of container doors, the front of the collapsible container has a roll-up front. This means that the space required for unloading of the container is reduced.   

Despite the many advantages above, Cargoshell’s containers may take a while to catch on. They are currently three times as expensive as standard containers. Therefore, any benefits which the folding containers bring are outweighed by this factor. If, however, the collapsible containers become more and more popular in the future, economies of scale will begin to take effect and the price will of course eventually lower.

Over the past few years, FIDI have been working to develop and improve the FAIM qualification in order to raise standards and improve customer service levels. The result of this is the launch of FAIM 2.0 which will become the new standard for FIDI members.

FIDI FAIM Certification is the quality standard for the international removals industry. John Mason International are FAIM accredited and have been for many years. FAIM 2.0 will replace the previous FAIM Certificate.

The FAIM Steering Committee developed FAIM 2.0 by analysing research from corporate customers with regard to the moving process. Matters examined included looking at which aspects of the move are most important to clients and critical aspects of service delivery during international removals.

FAIM 2.0 includes the following improvements:

• Environmental and Corporate Social Responsibility (CSR) policies are now included.

Under FAIM 2.0, all companies must have an environmental policy which outlines steps which are being taken to reduce waste and conserve energy in addition to recycling procedures, in particular the recycling of packing materials.

With regards to CSR, the issues of respect for human rights and business ethics must be addressed and an appropriate policy written and complied with.

• More stringent financial requirements and financial security benchmarks are now included. There will also be more frequent financial reviews (i.e. on an annual basis) of FIDI members to ensure sound financial health of companies and therefore to provide greater peace of mind to the client / customer. Financial measurements which will be requested by FAIM auditors include gearing  liquidity ratios.  
• Business continuity plans to be included in FAIM procedure.
• Increased requirements with regard to security measures including data protection systems as well as the physical protection of a customer’s household goods when moving overseas. Data protection systems also apply to employees of FIDI member companies.
• Focus on training and education of staff and the promotion of continuous education so employees of FIDI affiliated companies are as knowledgeable and as qualified as possible. 
• Increased number of customer-focused policies such as:

1.  Improved communications with customers with a focus on time responsive communication. A fast response to customer enquiries is seen as a key indicator of quality.
2. Customer Feedback module expanded and improved. The new module will comprise of policy recommendations for recording and monitoring feedback for customers moving overseas.

Boris A. Populoh, Managing Director of the FIDI Global Alliance comments about FAIM 2.0 in a recent edition of Mobility magazine:

‘The functional focus of the new FAIM 2.0 standard will remain the progressive monitoring of evolving requirements of both the customers’ and service providers’ needs to respond to the changing needs of the ultimate consumer: the international assignee and his or her family’.

(Reprinted with permission of Worldwide ERC^®, from the June 2010 issue of MOBILITY).

In summary, the purpose of FAIM 2.0 is to ‘raise the bar’ in terms of quality in the international moving industry. It will now be more difficult to achieve FAIM meaning that FIDI members must reach and maintain higher service levels and quality controls. Ultimately, this means improved service for the customer and a strengthened guarantee of receiving a high quality service when using a FIDI mover.

FAIM is the sole requirement to be a FIDI member, therefore all FIDI members will be required to adhere to the new standard. It is expected that FAIM 2.0 will be launched later this year.

50,000 workers are currently on strike in the South African ports of Durban, Port Elizabeth and East London. The national strike is being undertaken by Transnet Ltd employees – a state owned organisation which operates the ports and rail systems in South Africa.

Apart from causing disruption at South African ports, the strike is also affecting rail links to inland terminals. South African Transport and Allied Workers Union (SATAWU) workers have been striking for over two weeks now with subsequent damage to the country’s export industry. SATAWU workers account for nearly 40% of Transnet’s employees.

It was reported yesterday however that it looks like there may be a deal by the end of this week. Transnet have placed a new offer on the table which includes a one-off payment. However, even if this deal is accepted, there is still a back log of cargo to clear.

The strike may delay international removals shipments. If you are moving to South Africa and are shipping your household effects, your consignment may experience longer transit times due to the industrial action. Your international removal consultant will advise you as soon of possible if your shipment will be affected by the strike.

The international removals industry is currently having to accommodate high freight rates for sea shipments. This is having a knock on effect on customer prices and also shipment transit times.

The reason for the high freight rates is that during the poor marketing conditions of the recession, shipping lines experienced considerable losses. In response to this, freight providers have now restricted capacity with many vessels being temporarily withdrawn from service. This has been the case in particular with vessels operating out of Singapore. Furthermore, orders for new, larger vessels have been delayed.

By implementing these measures, the consequences for the international removals industry are significant. There is now less availability on shipping vessels for containers and there is also an increase in freight rates for many destinations.

A member of the John Mason team, Caroline Mason, attended the recent Young Movers event at the BAR Conference in Bristol earlier this month. The Young Movers is an organisation for people in their 20s and 30s who are involved in the domestic and international removals industry. The Young Movers supports its members by providing training opportunities and networking events to allow members to build contacts and learn more about the moving industry.

The previous two events have been a great success. The first event was held in Birmingham in Star City and concentrated mainly on providing a platform for making contacts and establishing friendships. The second event was held in BAR HQ in Watford introduced training to the group in the form of a number of presentations from industry experts. There was also a fun activity at the end of the day also of course!

The first event at a BAR Conference was held this month. All the group members enjoyed the challenges of the ‘Jungle Rumble’, a crazy golf establishment at Cabot Circus in Bristol, nearby to the BAR Conference hotel. Members were divided into teams of four who then proceeded to make their way around the 18 hold course. This was a great opportunity for relaxed networking as the numerous bad putting shots from various people gave everyone something to laugh about!

Loren Webster, BAR Training Manager said ‘there was a massive buzz around the Young Movers group, people are really excited about our project and I think the European Young Movers conference I am going to will create further contacts for us all’.

Feedback from the event found that everyone appreciated the efforts which had been made to organise the meeting as well as really enjoying the evening and finding it to be useful for their career.

As well as being beneficial for UK moving and affiliate companies, the events are starting to attract BAR members from overseas who are looking to form associations with UK companies. Overseas removal companies have the opportunity to develop relationships in a friendly environment whilst also benefiting from the training and business seminars.

Pampos Thouki from Columbia Worldwide Movers in Cyprus, who attended the meeting in Bristol, feels that the importance of groups such as the Young Movers cannot be underestimated. He commented, ‘In my opinion, these kinds of events are crucial not only in establishing new business partners or new meetings between UK and Overseas affiliates, but also to establish a direct line to the next generation of people working in the removals industry. If this sequential line managed to break, then the bonds and the cooperation that the past or the current generations have and wish to transfer to us, will be permanently lost. This kind of events should be more tactical and should be not only in UK but in other places as well. I strongly recommend that, so that the business relationships will become personal also and would have the meaning of true friendship’.

All Young Mover members are now looking forward to the next event which is to be held on the 18th June in Birmingham. The next event will involve a business seminar focussing on quality standards and health and safety. Afterwards there will be go-karting followed by a dinner.

A new Post-Panamax terminal at the Port of Liverpool is due to be constructed in order to accommodate larger container ships and increase container capacity. The new container terminal is being built by Mersey Dock and Harbour Company (part of The Peel Group) and the project is expected to cost around £90 million.

The news is extremely positive for Liverpool’s shipping industry and local international removals companies. The new terminal will almost double the annual container capacity for the Port of Liverpool and will be the first Post-Panamax terminal on the West coast of the UK. Previously, Post Panamax vessels have only been able to berth in ports in the South coast of Britain. Estimated container capacity for Liverpool will increase to 1.5 million TEUs per year.

Post-Panamax ships are container vessels with a capacity of 10,000 TEUs (Twenty Foot Equivalent Unit i.e. 20ft containers). If you are moving overseas, there is a chance that your effects may be travelling on a Post-Panamax vessel. Vessels such as these are usually used for deep sea routes. The name arises from the fact that Panamax ships are defined as the largest ships that could pass through the Panama Canal, therefore Post-Panamax vessels are those that are too large to fit through the Panama Canal, until the expansion is completed.

According to trade analysts, the Panama Canal will see a slow recovery this year, although revenues will rise, this will be of a modest nature. This is a similar pattern to that predicted for the general international shipping industry as a whole. Many economists believe that although the shipping industry is recovering from the financial crisis, progress will be gradual and moderate. This could be due to the fact that in the maritime business, orders can take several weeks to reach ports and therefore this delay means that the shipping industry can take longer to catch up.

Alberto Aleman, CEO of the Panama Canal Authority said:

’This year will be flat, it will be very similar in terms of volume. We are seeing the same tonnage’.

Revenues for the Panama Canal fell by almost 3% last year when compared to the previous year but income is expected to rise again this year. During the global crisis, the same number of ships passed through the canal but tonnage was lower due to the fact that most vessels were operating at lower capacities.  

The Panama Canal is one of the key shipping canals in the world. Around 4/5% of international commerce passes through the Panama Canal each year. If you are moving to Australia or New Zealand, it is likely that your goods will travel via this canal, of course depending on the routing of your shipment.

New shipping line freight rates announced by the shipping industry on the 1^st March this year show a dramatic increase in prices on all major routes. The new prices are disappointing news for international removal companies and customers as the new rates will unfortunately affect the cost of moving overseas.

Every year, shipping lines announce their new freight rates for all commodities. In previous years, there have only been minor changes in ocean freight prices. This is the first time in many years that freight rates have increased significantly.