Firstly, it is important to clarify that there isn’t a container shortage but rather a container imbalance. The reason for this is as follows:

‘Slow steaming’

The main reason for container imbalance is a process called ‘slow steaming’. This is when a shipping line orders its vessels to reduce speed for certain trade lanes in order to reduce fuel consumption. For example, some vessels are now taking over a fortnight for a journey which a few years ago would have taken around 11 days. The speed for many vessels has been reduced on average from 23 knots to 13 or 14 knots.

‘Slow steaming’ has been employed by all major shipping lines as a response to the global economic downturn and subsequent effect on international shipping and additionally rising fuel prices. It is now in place for most vessels crossing the Pacific and Atlantic Ocean, in particular many Asia-Europe trade lanes have been effected.

The slower transit times have led to the containers being tied up for a longer period of time, hence a reduced availability of containers. This can result in a shortage of empty containers at ports.

In summary, ‘slow steaming’ and the resulting container imbalance may affect you if you are moving overseas in the following way:

• The transit time for your consignment may be increased.
• Your quotation may be higher than expected due to an increase in freight rates. The shipping lines have restricted capacity through ‘slow steaming’. This restricted capacity leads to high freight rates.

If you have any further questions about the above, please feel free to contact us or contact your personal International Move Manager.

Household goods will be treated as commercial good and therefore be liable to customs duties and taxes. The current tax will be calculated on a weight basis with a minimum of 4 EUROS per kilogram (after the first 50kg).  

The new regulations are being enforced by the Federal Customs Service in Russia and apply to all household items apart from a list of 21 items. The list of exceptions includes jewellery, baby pushchairs / strollers, camera (limited to one), TV (limited to one), wheelchairs, medical equipment, sports accessories, car safety seat among other items.

There are also changes to regulations concerning the importation of alcohol and spirits. Over 5 litres will require special permission, less than this can be brought in for personal use.

The changes are a result of the recent creation of the Customs Union at the Eurasian Economic Community (EurAsEC) Summit. The Customs Union is a three party arrangement between Russia, Kazakhstan and Belarus to create a united customs territory and a single market.

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.

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 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.

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.

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 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.

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.

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.