Overcoming Household Goods Peak Season Challenges

Overcoming Household Goods Peak Season Challenges

As the main effects of the COVID-19 pandemic begin to subside in the Western world, global supply chains, specifically household goods movers, are faced with disruptions and vulnerabilities highlighted by the global pandemic.

As the industry enters what’s known as the “peak season” between June and September, both domestic and international household goods supply chains are being challenged to meet the demand. Seasonal volume along with the COVID-19 restrictions being lifted across a number of global locations and the demand for moving services returning close to pre-pandemic levels in both corporate and government sectors are influencing the dynamics.

The key challenges household good movers are currently facing include:

  • Shifts in traditional traffic patterns causing container and equipment imbalances and localized supply chain shortages
  • Port congestion and limited ocean vessel capacity creating upward pressure on price
  • Shortages in available labor and truck drivers causing additional strain on capacity
  • Increased costs and availability of lumber and corrugated products needed to package household goods

Household goods shipments compete for shipping capacity with commercial products globally and are therefore subject to additional delays. These challenges have caused upward pressure on price as demand has far exceeded available supply in many areas of the global supply chain.

What can organizations do to address these challenges?

  • Proactively communicate with suppliers or your Relocation Management Company to provide them with advance information regarding your requirements and upcoming needs
  • Initiate new orders as early as possible to ensure sufficient lead time is provided to your Relocation Management Company or suppliers to allow for proper scheduling and availability of desired move dates
  • Understand and assess how well your Relocation Management Company is partnering with their network of household goods suppliers to offer flexible service options and strategies to provide the best possible service
    • For example, in the United States, BGRS’s van line partners make up over 60% of the market share allowing us to flexibly service the needs of our clients and their mobile employees
    • BGRS’s small shipment containerization program has supplemented traditional van line moving services and now makes up over 30% of our domestic shipment volume
    • Internationally, BGRS’s strategic suppliers evaluate and provide alternative routes and shipment options to mitigate costs and avoid delays
  • Work with your supply chain or your Relocation Management Company to require supporting documentation in areas where additional costs and surcharges are imposed. BGRS routinely tracks and reviews all surcharges as part of our standard audit process, to benchmark costs and assess impacts through detailed reporting

Effective communications from your mobility supply chain partners regarding the current market conditions and trends are critical. Current information will allow you to proactively manage expectations and focus on the areas that contribute to a positive mobile employee experience. Partnering with a best-in-class supply chain, BGRS is committed to working with our suppliers on viable approaches for prioritizing our clients’ mobile employees’ shipments. We are staying up to date on the latest market conditions and developing innovative approaches to navigating the current challenges, by your side, looking ahead®.