SANTA FE RELOCATION

[Moving] Update May 2025, 16/05/2025

Moving update - May 2025

Shipping conditions are showing signs of volatility and recovery in equal measure. While the Red Sea ceasefire has introduced cautious optimism around ocean freight costs, operational risks, customs enforcement, and carrier restrictions continue to affect corporate moves. Ongoing shifts in shipping alliances, capacity constraints, and regulatory measures remain key concerns for relocating employees and the companies supporting them.

Red Sea ceasefire offers cautious optimism but no immediate relief

A recent ceasefire agreement in the Red Sea has raised hopes for reduced freight rates, as vessels may once again be able to transit directly rather than diverting around the Cape of Good Hope. However, major carriers remain hesitant to return to this route without concrete security guarantees. As a result, transit times remain extended, and overcapacity has yet to materialise in a way that benefits shippers. While analysts anticipate rate drops if traffic resumes, current pricing remains elevated on several key trade lanes.

Shipping lines and customs increase scrutiny and restrictions

Authorities in the United States have intensified inspections of containers at the Port of New York and New Jersey, following the discovery of stolen vehicles and undeclared hazardous materials. The increased oversight, particularly of cars shipped in containers, has introduced delays and additional risk for corporate shipments involving personal vehicles. At the same time, container quality remains an issue, with some relocations delayed due to unsuitable units being rejected at port. Businesses are advised to confirm container conditions and customs protocols early in the planning process.

China–EU freight rates show signs of rebounding

Spot rates on Asia–Europe routes have started to rise following a brief post-Lunar New Year dip. Higher volumes of automotive and electronics shipments into Germany and France are contributing to renewed pressure on capacity, which may lead to price adjustments on key relocation lanes into the EU.

Alliance shifts continue to affect schedules and reliability

Ongoing changes in global shipping alliances, including the rollout of the Maersk–Hapag-Lloyd Gemini Cooperation, are reshaping transit patterns on major east–west routes. While the shift promises improved long-term reliability, in the short term it has led to reduced direct service options and more complex transshipments via hub ports. As the new alliance structure stabilises, corporate customers should continue to expect schedule inconsistencies and longer lead times.

Trans-Pacific contract season introduces two-tiered pricing risks

Annual contracts on Asia–U.S. routes are being finalised, with large-volume shippers securing softer rates. However, spot pricing remains elevated for ad hoc or late-booked relocations, particularly via the Panama Canal, where capacity restrictions from prolonged drought conditions continue to affect routing.

New surcharges, compliance fees, and lithium battery challenges

Work disruption surcharges remain in place for U.S.-bound shipments, and additional fees have been applied to compensate for geopolitical risks and volatile fuel costs. Carriers are also applying carbon-related charges in line with new environmental regulations. Separately, lithium-ion battery policies remain inconsistent across carriers, particularly for items such as e-scooters, laptops, and power tools. Misdeclared items continue to pose a compliance risk and may result in rejected shipments or fines. Clients should always confirm restrictions in advance and seek expert support if uncertain.

To read the full article, please click here: MOVING UPDATE

Charles Pirat