Corporate relocations impacted by surcharges, container shortages and port backlogs

Global shipping conditions have shifted significantly in the past month, affecting businesses planning international relocations. Key issues include capacity constraints, shipping delays, rising costs, and regional operational challenges.

North America

Trans-Atlantic trade remains oversubscribed, despite the resolution of the USA Longshoremen strike. While the surcharge linked to the disruption has been lifted, vessel capacity continues to fall short of demand. Hapag Lloyd has introduced a peak season surcharge, adding $300 per 20ft container and $400 per 40ft container, further driving up costs. Delays, rolled containers, and cancellations are common, requiring businesses to plan for longer notice periods when booking.

Canada

Recent strikes have led to the closure of major Canadian ports, including Vancouver, Prince Rupert, and most of Montreal. Inland rail services to and from these ports have also halted, severely affecting the inland Port of Toronto. The Port of Halifax on the East Coast remains open but is expected to face congestion. Businesses with shipments to or through these ports should monitor the situation closely and consider alternative options where possible. Further updates will be provided as the situation develops.

Asia and the Middle East

Ships continue to divert around the Cape of Good Hope due to ongoing regional conflicts, extending transit times significantly. In the Middle East, services are extremely full, and void sailings are causing a backlog. The omission of Southampton from upcoming sailings has added further pressure on available space. Businesses relying on timely shipments should prepare for disruptions and plan their schedules accordingly.

Africa and Latin America

While service reliability remains stable, inland transport limitations in Africa have led to the removal of main ports from shipping schedules, particularly affecting routes to the Indian Ocean islands. In Latin America, lengthy customs clearance processes are often longer than the free storage period offered by shipping lines, resulting in extra charges. This poses an additional challenge for businesses, increasing the overall cost of relocations.

Recent developments

The quality of container equipment has declined, leading to an increase in rejected containers, which results in delays, missed vessels, and higher costs. Additionally, shipping line ONE LINE has stopped accepting personal effects from Russian passport holders, which may complicate relocations for individuals from Russia. Businesses need to be aware of such restrictions when planning corporate moves.

Lithium-ion batteries

Shipping lithium-ion batteries has become more complicated due to increased fire risks. Many shipping lines are inconsistent with their policies regarding these

batteries. Items such as laptops, power tools, and e-bikes may be subject to hazardous cargo declarations. Businesses should ensure compliance by confirming shipping lines’ policies and declaring these items correctly to avoid fines or shipment delays.

Strategic advice

Businesses should plan relocations well in advance, maintain transparent communication with shipping partners, and remain flexible with schedules. Budget allowances should factor in potential surcharges and delays. These measures will help mitigate the impact of ongoing shipping disruptions.

For further assistance or personalised advice, please contact your designated Santa Fe Relocation consultant.

Filip Leibl
Group Operations Manager
Santa Fe Relocation
filip.leibl@santaferelo.com