b'GOODS TRANSPORTIt has become a matter of "bad versus worse" in comparing rates. Companies have now settled on using the rate that seems to offer the best option with the knowledge that everything in the shipping business currently is subject to changeFLUID ENVIRONMENT challenges and freight rates could cause companies to cut back on Since the pandemic hit in 2020, the moving industry has beenrelocations in the short term. It could also reduce the weight allow-forced to navigate a fluid environment internationally. Globalances companies provide to employees for relocating should they and local challenges influenced the way business was conducteddecide to use furnished accommodations at destination.and the cost of business increased in all areasmost significantly in freight services. For moving companies, the new normUNCERTAIN FUTUREbecame flexibility. Rates for 2022 are not improving as high shipping demand The summer of 2020 saw freight rates increase as disruptionscontinues to outweigh tight shipping capacity. This reality gives the occurred in shipping lanes, the supply chain and sailing sched- transportation sector leverage to continue to raise spot prices and ules. This included general rate increases, port congestion costsannual contracts. Shippers forecast rates for many annual contracts and numerous COVID-19 surcharges as well as port storage andwill double compared with agreements struck earlier in 2021.shipping delays. In addition to the skyrocketing rates, movingSo, what options do household goods movers, and their relocation companies had to deal with unreliable shipping schedules,clients have for the future? Some experts recommend negotiating container delays and cancelled bookings, among other issues. fixed contracted rates while keeping an eye on spot rates, avail-Prior to the pandemic, movers used mostly contract rates inter- ability, reliability, and the general economic climate. The forecast nationally to secure competitive pricing and reliable services thatis freight prices (contract and spot) will remain unstable during were less sensitive to shifts in demand and capacity, says Christina2022 and into 2023 as issues surrounding a disrupted supply chain McCarte, director of AMJ Campbell International. The shippingcontinue to influence the cost and movement of freight.chaos created by the pandemic has movers juggling contract andThe current shipping environment of monthly or daily rate fluc-spot rates almost daily along with the seriously changing situationstuations, fuel price increases and shortages of workers in the ship-in the shipping business. ping sector will continue to challenge the moving industry in the With all this uncertainty, moving companies turned to spot rates,short term, notes McCarte. Moving companies cannot control which somewhat increased the chances of securing space andthese variables. However, we can control things such as communi-containers. The downside to this decision was new challenges suchcations with our relocation clients to ensure they are kept current as overbooked ships, container shortages, increased rail demandwith the changes occurring and can make informed decisions and reduced capacity. It has become a matter of bad versusabout the relocation process.worse in comparing rates. Companies have now settled on usingBromley adds, With the mayhem in the shipping industry the rate that seems to offer the best option with the knowledge thatcaused by the pandemic, we need to stay patient. It is going to everything in the shipping business currently is subject to change. take another year or two before shipping starts to return to even a Storage of freight until space availability allows it to be moved tonew normal for the relocation business. CERC members should its destination has also been pursued. However, port storage coststalk with their relocation or moving companies to learn more have also risen in an effort to reduce container shortages and portabout freight issues and how they can affect relocation plans.congestion. Container bookings have a limited number of deten-tion and demurrage free days and the cost beyond these days has escalated into the range of US$125-275 per day plus chassisDiamond Club Producerand container storage charges. A more inexpensive approach used by some companies is to hold shipments in the local warehouses of allied moving companies located outside of the port area.The significant increases in ocean shipping costs have also created an increase in requests for air freight whose rates are now more competitive. Despite the diminished number of flights in the beginning of the pandemic that reduced the volume of air freight, we have seen an increase in air freight use in the last year mainly905-841-0000because of the extreme reduction in shipping time compared toISO 9001lindrealty.caocean shipping, says McCarte. RegisteredService with professionalismDarren Bromley, national director and manager, international The Lind Realty Team Inc., Brokerage For all your GTA referralsmoving services at MoverOne International, adds, The current15105 Yonge Street, #100, Aurora, ONL4G 1M3 Greater Toronto Area, Ontario, CanadaSummer 2022PERSPECTIVES25'