The Current State of the Shipping Market – September 2021 Update by the British Association of Removers (BAR)

6 Sep 2021

Global container shipping operations faced one of their most extreme and complicated disruption ever during the past 18 months. People who depend on worldwide shipping for their goods management along with client service and international relocation experience extensive delays in container delivery and skyrocketing shipping costs. These disruptions have pushed logistics systems to their limits by revealing the actual extent of worldwide supply chain interdependence.

The British Association of Removers (BAR) released an essential update to clarify the present shipping market status. The report delivers important information to both logistics experts and clients who face current disruptions. The article discusses the observations of BAR regarding this crisis while examining its business effects on Asian Tigers Group and our client base.

A Perfect Storm: How We Got Here

The shipping market entered its crisis state through a combination of multiple factors that created a perfect storm of worldwide disruption.

Pandemic-Triggered Supply Chain Chaos

The origin of our current shipping crisis began with COVID-19 when it triggered multiple supply chain disruptions. Early 2020 brought worldwide manufacturing delays as governments started implementing lockdowns which forced border closures. The operational capacity of ports was reduced. During the pandemic consumers remained indoors and thus reduced their product purchases.

The relaxation of lockdowns during mid-2020 triggered a quick surge in consumer demand toward electronics and home furnishings and other goods which caused shipping volume to surge unexpectedly. The infrastructure that should handle this volume of activity had not recovered completely.

Key Challenges Facing the Shipping Industry

BAR presents major problems that continue to affect the container shipping market according to its latest update. The rising difficulties facing importers exporters and customers as well as movers stem from these separate issues.

1. Severe Container Shortages

The worldwide shortage of shipping containers stands as one of the main indicators of the current crisis. Thousands of shipping containers became stuck in inland depots and ports located in non-traditional areas during the pandemic’s first stages. The majority of these containers were abandoned in Asia since it remains the main manufacturing hub of the world. The unbalanced market supply and demand have resulted in a major mismatch.

Businesses face challenges in acquiring containers at needed times because of this which causes scheduling delays and production and distribution disruptions.

2. Port Congestion and Bottlenecks

The congestion problem affects major ports across Asia and Europe and the United States. Container ships must spend multiple days up to several weeks in port for unloading operations because of worker shortages together with strict quarantine requirements and insufficient storage facilities.

Businesses together with consumers experience prolonged delays because of port congestion which occurs at destination facilities. The process of unloading a container ship at port followed by truck or train transport requires ships to spend extended periods waiting.

3. Skyrocketing Freight Rates

The biggest change that stands out in the market has been the tremendous increase in shipping prices. According to BAR and multiple industry indexes freight rates have increased by 400% to 700% in certain cases when compared to pre-pandemic levels.

The cost to ship a 40-foot container from Asia to Europe or North America used to be between $2,000 and $3,000 but now reaches between $15,000 to $20,000 or more depending on premium space requirements. The increased shipping costs impact both corporate financial resources and customer expenses through elevated retail product costs.

How It Affects the Moving and Relocation Industry

For companies like Asian Tigers Group, which specializes in international relocations and household moves, the shipping crisis has had significant operational impacts.

• Extended Transit Times: What used to be a 6-week door-to-door move may now take 10–12 weeks or longer.
• Unpredictability: Shipping schedules are no longer reliable, making it difficult to give clients accurate delivery timelines.
• Increased Costs: Surging freight rates and surcharges increase the total cost of relocation, which must sometimes be passed on to clients.
  
  

Our team operates continuously alongside shipping partners, port agents and customs brokers to reduce disruptions while keeping customers informed.

What Customers Need to Know

BAR’s update, and our own experience, underscore some key points for customers planning international shipments or relocations:

1. Plan Far in Advance

The world has entered an era where immediate international shipping no longer exists unless it is in the current situation. Customers who plan international shipments need to start their preparations several months ahead of time especially when they have set moving dates.

2. Expect Flexibility

Customers need to maintain their flexibility because shipping schedules and dates might experience unexpected changes. Shipping lines use the available space on upcoming vessels when port congestion or equipment problems force them to move containers.

3. Budget Accordingly

The increase of shipping rates results in elevated total costs for moving services. Our organization makes all necessary cost management efforts but fuel surcharges and peak season surcharges and container surcharges tend to be unavoidable costs.

Industry Adaptations and Workarounds

The shipping industry operates continuously without interruption. The shipping crisis response includes multiple adaptive solutions which both existing and new organizations are currently developing and deploying:

• Investments in New Containers: Manufacturers are ramping up container production, particularly in China.
• New Port Infrastructure: Governments and port authorities are investing in expanded port capacity and improved logistics systems.
• Digital Tools: Companies are adopting more advanced tracking, booking, and predictive logistics systems to increase transparency and responsiveness.
• Alternative Shipping Routes: In some cases, companies are exploring alternative routes (e.g., rail from China to Europe) to bypass congested ports.
  
  

Industry experts predict that the global shipping market will return to normal levels in 2022 or 2023 according to their forecasts.

A Message of Transparency and Partnership

Asian Tigers Group dedicates itself to provide complete transparency to our customer base. The company acknowledges BAR’s position regarding the situation and commends their commitment to delivering precise and detailed information that enhances understanding of the present situation for both industry experts and consumers.

Our teams function as professional units which operate with agility to tackle present challenges. Our priority is to maintain your trust through continuous monitoring of developments and realistic timeline adjustments and clear expectations for clients.

Conclusion: The Road Ahead

The 2021 global shipping crisis revealed the world’s logistics systems are both vulnerable and highly connected. The entire supply chain suffers from the combined effects of Shanghai container shortages and Rotterdam port strikes.

The collaboration between informed adaptability and patience will help us handle current obstacles as we build a stronger future.

The British Association of Removers (BAR) has published a full report that we recommend reading to all our customers and partners who need assistance with shipping or relocation services.

Credit: British Association of Removers (BAR)