Global Impact Updates

May 10, 2022

Safe to assume if you are reading this, you too are quite busy as summer is upon us!

At this point, it is clear 2022 is going to feel about the same as 2021. A lot of volume and still a shortage of labor to do the actual moving. We are already seeing dates fill up in June, so make sure you get your transferees to set dates sooner than later.

COVID remains an issue in China, with a lockdown starting in the Chaoyang District in Beijing, a downtown business and residential area where expatriate families live. Shanghai is well into their second month of lockdown with no end date identified. Virtual surveys are the only household goods service available in these areas now. When each of these markets open, dates will be hard to come by for some time.

These lockdowns have also caused incredible congestion at the ports there. Ships have skipped calls on Shanghai all together, so there will be quite the backlog as some point. As a consumer of goods, you will start to see and feel this as you browse through your favorite retailer. With relocation, it is important to get the moves booked and to have people get in line for open dates.

For a more in depth look into the challenges of global shipping, look at THIS article by Reuters.

In the US, the rail system is facing big congestion issues on the West Coast and as well as the Midwest. Too much freight and not enough people or equipment to manage it all.

We do expect trucking capacity to increase in the coming months. With less products coming from China, there will be less freight to ship around the US.

Airfreight could start to see some relief with costs. The cargo holds of aircraft flying between Europe and North America are less full than a month ago as the number of passenger flights swells and shipping demand softens, but supply chain challenges and high jet fuel prices are artificially propping up freight rates in a declining market, according to logistics experts.

As always, if you have any questions or feedback, please do not hesitate for reach out.

Thank you for your support!