Asia to UK Freight Rates!!

The cost of importing containers filled with consumer/household goods from Asia into the UK has reached a record high after a surge in demand in the weeks before Christmas and the UK’s exit from the EU. Rates have not settled down in 2021.. In fact just gone up further!
Shipping experts believe the UK has been dealt a double blow by the impact of the coronavirus, which has disrupted global shipping supply chains, and the end of the Brexit transition period, which caused a large increase in imports in the last months of 2020. Container freight rates from Asia have increased almost tenfold since November to reach
USD$10,000 for a 40ft unit for the first time (James' update…. About USD$18k as of 20th Sept!!), amid a global rebound in demand for consumer goods and materials, and congestion in UK ports where many empty containers have been left stranded.
Vincent Clerc, chief commercial officer for Maersk, the world’s biggest shipping company, said there are “simply not enough containers in the world to cope with the current demand”. He said that recent lockdowns in the UK and across Europe may even spur further online purchases of consumer goods such as home exercise equipment and furniture for “at least for some weeks … It is really crazy how much we are moving at the moment, huge amounts,” he said.

Other Stories:

Movement of Personal Effects Between UK & Europe – Post Brexit!

As we all know the UK left the European Community at the start of 2021. Trade, and ease of free working rights throughout the continent have changed. What does this mean for the movement of personal effects between UK & mainland Europe?
Boxchain-Moving would like to give you can update on what we have experienced in the lasts 4 weeks while operating with the new rules.
The principal issue we have encountered is the number of days it has taken to clear customs at ports with up to a delay of 10 days over and above what we considered ‘normal’ a few months (or weeks) ago. We have seen up to 7 days demurrage charges incurred due to these delays. This has been caused (in part) by companies bulk buying to avoid potential tariffs and complications. HHG’s personal effects removals have been caught in the middle of an unprecedented uplift in inbound activity at UK ports, not just from Europe but also from around the world!

Related issues include (and not limited to):

  • A reduction in frequent and efficient trucking of HHG personal effects to and from Europe
  • Equipment shortages such as packing material products essential to the moving industry manufactured in the EU and beyond
  • Increased freight rates through December & January 2021. We hope these rates will settle as we move through the year

As we head into the second month of the new trading mechanism, we see that export of personal effects to Europe is incurring higher costs not only for the industry but also for the named shipper (our customers). Mainland Europe countries are sporadically charging tax on household goods crossing their borders. Outbound paperwork and processes are evolving. Each country is taking its own approach. For export to Europe proof of residency in UK is required (for example), to avoid taxation. In the past people have not had to deregister in their home European country before moving to UK. This now appears to be a problem upon returning. We will detail this further in a specific blog as it has wide implications for all our European customers.

Covid 19 issues have compounded the problems at ports. Read our Covid blog for more details on how Boxchain-Moving has been following protocols across our global supply chain.

Boxchain-Moving is committed to observing and working with the processes required for movement of household goods to and from UK. We will keep updating our blog with essential information.