Global Moving news and updates February 2025

Market conditions and shipping disruptions

Global relocation continues to be affected by ongoing disruptions in sea freight. Geopolitical instability in the Red Sea, capacity constraints, and new environmental regulations are driving volatility across key trade routes. While some relief in freight rates is expected, long-term impacts from industry shifts and sustainability measures will shape the relocation landscape in 2025.

Red Sea crisis and freight rate volatility

Geopolitical tensions in the Red Sea have forced shipping lines to reroute via the Cape of Good Hope, increasing transit times and reducing available capacity. This situation, which began in December 2023, has shaped the evolution of sea freight, leading to longer transit times and increased fuel consumption. The diversion has tied up 30% more capacity than usual, leading to higher freight rates. Some carriers, including Maersk and Hapag-Lloyd, continue rerouting, while others like CMA CGM are assessing options on a case-by-case basis. Maersk has also projected a 4% growth in the global container shipping market for 2025, highlighting opportunities for recovery despite these challenges. Although de-escalation could bring partial relief, the long-term cost impact remains uncertain.

Freight rate adjustments and economic shifts

Freight rates are declining after sharp increases in late 2024. Spot rates from the Far East to North Europe have dropped, with Mediterranean routes seeing a 13% decrease ($5,085 per FEU), and US-bound shipments falling by 14% on the West Coast ($5,021 per FEU) and 7% on the East Coast ($6,417 per FEU). It is important to note that these rates, sourced from Drewry, reflect average spot market trends and are intended for reference only. They are subject to change at any time by the shipping lines. The slowdown around the Lunar New Year and capacity adjustments by carriers are further influencing the market. Additionally, ongoing trade tensions between the US, China, Canada, and the EU may shift sourcing patterns, affecting demand and rate stability.

Trade tariffs and shifting demand

Trade tariffs, particularly in US-China trade, are beginning to influence global freight demand. DSV, a global freight operator, has warned that increasing tariffs could slightly reduce demand and impact market conditions in 2025. Some customers are already adjusting their order schedules amid this uncertainty. While global transport markets are expected to align with overall GDP growth, risks from geopolitical tensions and shifting trade policies remain a significant factor for businesses to consider.
Regulatory impact: IMO 2030 and carbon cost increases
The IMO 2030 regulations, aimed at reducing shipping emissions by 40% from 2008 levels, will increase operational costs. Fuel transition, fleet upgrades, and the expansion of the EU Emissions Trading System (ETS) will introduce additional cost pressures. Some carriers are introducing value-added services to offset the carbon footprint and mitigate direct ETS costs, adding a new layer of complexity to corporate moves.

Declining reliability and operational impact

Shipping reliability remains significantly below pre-pandemic levels. In 2024, schedule reliability averaged 50–55%, driven by industrial actions, geopolitical instability, and congestion at transshipment hubs. Santa Fe’s teams continue to closely monitor all shipments to keep clients informed and proactively manage potential disruptions, using tools such as Project 44 and SSL trackers to ensure accurate updates. Real-time tracking solutions such as MSC Traxens, Hapag-Lloyd’s in-house tracking, and ZIM’s Hoopo system are becoming essential for maintaining visibility over shipments.

Strategic industry shifts: The Gemini Cooperation

Maersk and Hapag-Lloyd’s new Gemini Cooperation, launching in February 2025, aims to improve service reliability by deploying 340 vessels across 57 services, focusing on East-West trade routes. The shift to a hub-and-spoke model targets 90% schedule reliability, a significant improvement over current averages. This restructuring will reduce direct services in favour of transshipment via regional hubs, affecting shipment planning and transit times for corporate relocations.

Strategic recommendations for businesses

• Plan early: With ongoing disruptions and fluctuating freight rates, businesses should book shipments well in advance to secure capacity and stabilise costs.
• Monitor regulatory developments: The financial impact of IMO 2030 and the EU ETS will grow, requiring careful cost forecasting.
• Enhance shipment visibility: Real-time tracking solutions should be integrated to manage delays and improve supply chain control.
• Work with experienced providers: Partnering with a relocation provider that actively manages risks and maintains industry intelligence is crucial in an unpredictable environment.

At Santa Fe Relocation, we are dedicated to supporting our clients through these developments with timely updates and strategic advice. Our team remains vigilant, monitoring industry changes to deliver tailored solutions that ensure business continuity. For further assistance or personalised guidance, please contact your designated Santa Fe Relocation consultant.

Filip Leibl
Group Operations Manager
Santa Fe Relocation

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