Industry Update June 2024
Welcome to our June industry update:
General Update:
Peak season is here and yet again we have an interesting season ahead. Our industry association IAM observed in their news portal that the current freight climate was a “Flashback to Covid with Skyrocketing ocean freight rates” and referenced this CNBC article.
Freight increases are not the only issues we will experience this season. Globally there are reports of port disruptions due to port strikes, adverse weather conditions (such as the recent flooding in Germany), The re-routing of vessels/delays at ports is also causing the displacement of containers. Linked below are some articles which you may find interesting.
We advised last month of the disruption in Singapore, and to ease congestion, previously shuttered terminals were re-opened, this action improved handling capacity by 50,000 TEU per week. This is a step in the right direction but as half of the sailings from Asia to Europe have failed to depart on time there is a considerable backlog and the shipping lines have advised that they do not foresee any short-term-let-up in the congestion and that freight rates will remain high into Q3.
There was some positive news at the beginning of June; the port of Baltimore is back at full capacity and because of this the economic opportunities for the local communities who are dependent on the port are also improving.
There is also a slight improvement in the Panama Canal as from July 1st the transits will increase from 32 to 33 and from July 11th to 34, very small steps but going in the right direction.
The situation in the Red Sea has not improved and the attacks on vessels continue, this Splash article hypothesizes what happens when the Houthis stop shooting.
Related articles:
News from Voerman Group Locations:
Voerman International B.V. , Czech – In April, the government proposed some changes which would make it easier for citizens from 7 non-EU countries to work in CZ, there was a proposal to increase the number to 10 but the approval has been given for 9 with Singapore and Israel added to the original list. Effective from July citizens of the 9 approved countries (US, UK, NZ, South Korea, Japan, Canada, Australia, Israel, and Singapore) can work in CZ without work permits or employment cards.
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Sustainability:
Sympany – As part of our ongoing plan for sustainability, we are nearing the finalization of our partnership with Dutch based Sympany whose goal is to encourage the decluttering of wardrobes and donating unwanted clothing. By partnering with these types of initiatives, we take another step towards sustainable consumption (UN SDG Goal - number 12), with 80% of the collected material being repurposed into new items and the remaining 20% transformed into insulation materials. The initiative also responds to our clients’ requests for Discard & Donate programs. Read more at Sympany Foundation’s website.
Our commitment: As always, our move management teams will continue to work proactively with the families moving and our corporate contacts and to provide excellent service. We will continue to review and improve our processes to achieve cost efficiencies without impacting the quality of service.
Your commitment: In this peak season period, we continue to ask our clients and partners to provide us with new initiations as early as possible. It is important to continue to work in this way as this will assist us to understand and meet the needs of the transferee and the transit time requirements, also to set realistic expectations at the beginning of the relocation journey. If you have any questions, please reach out to your account manager or customer services contact.
Steps we are taking:
? Managing expectations and being flexible is vital
? Pre-advising that freight charges may increase
? Pre-advising that storage at origin may be required due to equipment availability
? Pre-advising that congestion at ports will result in port charges
? Out of the box thinking is required, such as considering alternative routes / ports etc – this may increase costs but improve transit times
Proactive communication: As always communication remains key and whilst it is difficult to predict all the developments and consequences in the global freight market, we remain actively involved in industry associations on all continents to ensure that we are prepared to serve our clients in the current market conditions. The combined effort of our supply chain and logistics teams along with The Harmony Relocation Network and our industry associations allows us to continue to expand operating capabilities.
We will continue to keep you updated and please reach out on any questions.
Pauline Collins – Supply Chain Manager
Great update! How is the forecast for international corporate and RMC activity coming out of Europe to the US, Canada and Mexico?