Are you relocating between Asia and Europe? You might have noticed, and been surprised, that the costs are higher than you might have anticipated. What is going on then?
The prime reason is rising shipping costs. Whether you’re moving for work, family, or a fresh start, understanding the factors behind these cost increases can help you plan better and ensure you enjoy a smooth relocation process.
In this article, we’ll break down why shipping costs have surged and provide some tips to help manage your move.
What Influences the Cost of your Move?
The cost of your move is influenced by a wide variety of elements and factors, which is why your moving professional will ask about the details of your move before providing a quote.
Some of the key elements and factors influencing the cost of your move are:
- Shipping rates
- Fuel prices
- Total volume & weight of your belongings
- The distance & destination accessibility
- The type of move (domestic vs. international)
- The mode of transport (road, sea, air freight)
- The time of the year (peak vs. off-peak season in partculiar)
- Additional services (packing, storage, insurance, etc.)
- Special items (fragile or valuable items requiring special handling)
- Permit and fees
- Labor costs (number of movers required and duration of the handling)
Currently, shipping costs are the primary factor causing higher moving expenses between Asia and Europe.
Why Have Shipping Costs Increased?
Geopolitical Factors
Geopolitical instability, especially in the Red Sea Region, has caused significant disruptions. Attacks on commercial vessels in the Red Sea have led many shipping companies to redirect their ships away from the Suez Canal, the normally preferred route between Asia and Europe, to the longer route around the Cape of Good Hope.
This rerouting adds extra days and miles to your belongings' journey. On average, this detour increases travel time by about 10 days and fuels costs by up to 40%.
High Demand and Limited Capacity
The post-pandemic economic rebound has boosted demand for shipping services. With more goods being moved, there's fierce competition for available space on ships. When demand is high, but space is limited, prices go up.
Port Congestion
Major ports are experiencing severe delays and severe backlogs. Ships are waiting longer to docks and unload, causing delays and further increasing costs.
For example, Singapore, one of the largest container ports, has seen a massive increase in waiting times for ships. This congestion is partly due to a shortage of port workers and increased global shipping volumes.
Seasonal Shifts
Typically, the peak shipping season is from mid-August to mid-October. However, this year, the peak season has started earlier, adding additional pressure on shipping rates. Retailers are booking slots well in advance to ensure their goods arrive on time for the holidays, which adds to the demand.
Container Shortage
There's a shortage of shipping containers worldwide. With fewer containers available, companies are struggling to transport goods as efficiently as before. This shortage is pushing up costs for everyone involved.
What Can Be Done About It?
Plan Ahead
Give yourself plenty of time to arrange your move. Early planning and booking can help secure better rates and avoid last-minute complications.
Budget for Extra Costs, Just in Case
Expect that shipping costs might be higher than you were initially quoted. Setting aside a bit more budget for your move and confirming early with your moving partner will help ensure you don't have unexpected surprises.
Stay Flexible
If you can, be flexible with your moving dates. Sometimes, moving during off-peak times can help you save on your upcoming move.
Consult your Relocation Expert
Discussing with a relocation professional will provide you with informed and valuable expert insights and help you navigate the complexities and optimize your upcoming move in today's context.
International moving is a big step, and while rising costs can be a challenge, you don't have to handle it all alone! Planning ahead and staying flexible is key, but having a trusted relocation partner by your side can make all the difference.
At ASI Movers, we specialize in making your move as smooth and stress-free as possible. Our expert teams, strong with 15 years of expertise in managing international moves, are dedicated to helping you understand and manage the complexities of your relocation, from budgeting and planning to executing your move with precision.
If you have any questions or need assistance with optimizing your move, don't hesitate to reach out to one of your moving professionals. Let us handle the details so you can enjoy a stress-free relocation experience.
