Month: January 2023

Many Ocean Shipping Lines Are Moving to Aircraft

Post author By Ann Knapp | CRP, GMS, CMC
Post date January 31, 2023

airplane flying over large shipping containers — Airplane flying above container port.

Many household goods shipping companies are investing in air travel

As shippers look for more efficient ways to ship household goods worldwide, ocean freight companies are increasingly turning to air cargo. Although airfreight represents only a tiny section of the broader cargo industry, the pandemic has caused it to become more prominent due to supply chains, travel bans, and consumer spending issues.

Air travel has become increasingly important for companies engaged in maritime trade due to the recent pandemic. With more people shopping online, household goods shipping companies are struggling to keep up with demand. This has caused ships to be idly anchored at congested ports, unable to dock for weeks at a time. Further complicating matters is a shortage of workers assigned to load and unload vessels. Containers that could be used to hold exports are instead sitting unused, while exporters with plenty of goods to ship need help to get containers.

The three dominant European container shipping companies (AP Moeller-Maersk, CMA CGM Group, and Mediterranean Shipping Co.) have primarily avoided airfreight, feeling that it is an expensive distraction from their core businesses of operating giant vessels, container terminals, and related logistics operations around the world. However, executives claim that many customers are now opting for air shipping because it is more cost-effective and reliable. Maersk, the world’s largest container shipping company, began an air cargo division in April last year and now has a fleet of 15 planes.

Ocean Freighters Turning to Buy Air Planes

Boeing and Airbus are now part of this equation as they started selling freighter versions of their newer widebody planes. These freighters are more fuel-efficient than older cargo jets. And to show the rising demand for converting old passenger planes into freighters, it should be noted that some have been booked up for years.

In recent reports, Maersk is anticipating free cash flow to be about $19 billion by the end of 2022. The company plans to obtain seven Boeing 767s (purchase three and lease four) by the new year. The idea would be to have aircraft fly routes between Asia, the United States, and Europe.

Last year, Maersk moved into the air cargo game and increased volume by 100% after purchasing German air freight company, Senator International. In addition, Maersk has been buying airplanes for its air cargo division, which was formerly called Star Air. The division, contracted by United Parcel Service Inc. and Germany’s DHL to fly freight, now operates with 15 Boeing-made 767 freighters.

Also, earlier this year, CMA CGM, the world’s third-biggest ocean shipper, agreed to share cargo space with Air France-KLM. And on top of that, CMA CGM said it would buy a 9% stake in the airline.

Numbers released by the International Air Transport Association (IATA), last year, the airfreight industry grew over 21%. This means that revenue will increase to $289 billion in 2022, up from $238 billion last year.

Boeing reported that about 400 freight planes had been added to the world fleet in the past three years. This is an eye-opening 20% rise. Boeing is now estimating that the global freighter fleet will increase to about 3,600 by 2040. To put that number in perspective, it is currently around 2,000.

How Increased Airfreight Will Affect Global Mobility & Relocation Industry

In the past, airfreight for relocations was too expensive, and many relocation companies didn’t even consider it an option. However, the lowering costs and the congestion of ports have now made a more realistic answer for many.

As airfreight rates become more affordable, international relocation companies can choose to ship household goods by air. With more employers turning to lump sum packages for relocations and ocean shipping delays being a common factor, transferees are leaving more of their belongings behind when they move abroad for a work assignment. The fewer belongings the employee brings means the quicker they can move, meaning the more likely they are to choose airfreight for their next relocation. Although the airfreight method is still quite costly, it eliminates many relocation delays, significantly improving the transferee’s experience.

Global Mobility Solutions (GMS) is the industry leader in Global Mobility, which is why we stay on top of all topics regarding relocation. Visit our Knowledge Base to learn more about hot topics in the relocation industry. And feel free to reach out to us with any questions regarding the household goods shipment.

Ready to Calculate YOur Program Savings? Request Access Now!

Are you ready to calculate your potential relocation program savings? Request access to our easy-to-use Relocation Cost Savings Calculator. Your Mobility Pro will grant your access request within 1 business day.

Tags Household Goods Movement Management, household goods shipping, household goods transportation

Corporate relocation tips Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips Domestic Relocation Trends

HR’s Role in Managing Employee Relocation

Post author By Kimberly Chacon
Post date January 24, 2023

young family playing while they move in to their new home — A photo of playful parents holding sons's hands in new house. Happy and playful family are with cardboard boxes. They are in casuals.

Here is an overview of everything you need to know about getting an employee from point A to point B

Any company’s human resource department has countless staff relationship tasks, from approving vacation days to helping employees during their relocation process. The HR team is the company’s glue, holding together all the company’s processes and the backend paperwork regarding every employee.

In most cases, the HR team is responsible for working with relocation services providers to work with the company to assist moving employees who accept a relocation assignment. HR teams will usually be in charge of getting quotes from relocation management companies (RMC), then working with the chosen RMC to set up the global mobility benefits that employees can utilize. If not taken care of properly, a lousy relocation process can hinder the hiring or retaining of skilled employees. A competitive and comprehensive relocation package is necessary to encourage employees to accept domestic and international relocation assignments.

HR’s role in employee relocations is significant; they must ensure a smooth transition by providing support. Global relocations are critical to every company’s success and should be taken seriously.

Setting Goals for Relocation Services

The HR team needs to come up with more innovative ideas when it comes to global mobility and employee relocation. In multinational companies, specific programs and procedures are in place to ensure employee hassle-free relocation.

Any relocation plan that addresses and minimizes stress on employees and HR professionals must be appealing to transferring employees at any level on the organization chart. The employee must be able to relocate and be familiar with the process, often resolving questions regarding relocation and relocation issues.

Key Elements of Relocation Policies

There is no doubt that relocating employees can be a hectic process for all involved. But none more so than the employee and their family. That is why the HR team must cover as many benefits as possible so that the employee has the best chance of a smooth transition. It is a big ask for an employee to move states, or even countries, to work for a new company, which is why they should be taken care of. Here are some standard relocation services that should be covered in even the most standard packages:

Fair compensation adjustments are made if the living cost of the new location is higher than the transferee’s base.
Working with expert relocation coaches to assist relocating employees to guarantee low-stress, effective location change.
Paid trips to look for a house, multiple if possible, allow the employee and spouse to see homes that would work and get to know new neighborhoods that would be acceptable.
Moving and travel expenses are reimbursed to ensure that the shipping of the employee’s household goods is appropriately performed and minimizes the family’s costs to relocate to the new location.
Short-term housing options so the employee and their family can adjust to their new destination for a short period before buying a new home.

It’s HR’s Job to Introduce and Education New Employees about Relocation

As stated before, the HR manager and their team have countless tasks and processes to keep employees up to date on. But walking through the relocation policies with a new-hired employee is a vital task that should be considered. There should be a set company process setup for onboarding a relocating employee.

It is crucial to go over how, when, and where the relocation process occurs. Also, be honest and upfront with the employee on what they can expect during the move. Lastly, if working with an RMC that provides relocation coaches or one-on-one contact with a global mobility specialist, a company HR representative should introduce the employee to that assigned coach. On top of that, the company’s HR team should also act as a backup, best they can, if the relocation coach is unavailable for more than a few business days.

Need Help Updating or Creating Relocation Services?

Global Mobility Solutions (GMS) knows first-hand how busy HR teams can be. We want to help you and your team update or create your company’s relocation policies. Since 1987, GMS has been hiring the top relocation experts in the industry to ensure we can provide award-winning relocation services to our clients.

Let us help you remove all the stress and concerns of relocating employees. We will listen to all of your needs and, from there, help you construct comprehensive relocation packages that employees will have a hard time turning down. But it is not only our goal to assist your employees’ move, but to keep relocation policies cost-efficient for your company.

Our initiative technology helps employees, HR reps, and relocation coaches track the relocation process from start to finish. We have a cloud-based system that helps track everything from payments and recipients to household goods shipping.

If your HR team is ready to discuss how to set up an excellent relocation process for both employees and the company, then set up a free consultation with one of our relocation experts, who will get you on the right track.

We're Here to Help! Request a Courtesy Consultation

Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.

Tags Domestic Relocation, relocation services, relocation tips, relocation trends

Business Services Buy a Home Career Services Corporate relocation tips

What to Expect for Rent Prices Moving into 2023

Post author By Jules Matz | AHWD, ABR, CNE, CRP, GRI
Post date January 17, 2023

Young woman doing an online shopping for new home

Many real estate experts are calling for rent prices to rise

While the real estate markets throughout the country are constantly shifting, many felt that heading into 2023, we’d see a calmer market overall than we had from 2020-2022. But rent prices, for the long-term outlook, are not looking promising as we move into 2023. In August of this year, the median rent price in the most significant 50 US cities fell by about $10, according to Realtor.com. That was the first time we saw a dip in the US median price since November 2021.

But, unfortunately, one month’s worth of decline in that rent price doesn’t necessarily start a long-term downward trend. Rental demand will remain strong due to rising mortgage rates and homeownership costs, which will stop many people from being able to enter the buyer’s market in the new year. This forces many would-be homebuyers to remain in the rental market, signing leases through 2023 and beyond, exacerbating an already high-demanded rental market.

Expect above-average rent price increases for the first half of 2023

Based on data from the federal government’s consumer price index, the Federal Reserve Bank of Dallas predicts that rental prices will increase from 5.8% to 8.4% between June 2022 and May 2023.

According to Thomas LaSalvia, a director of financial analysis at Moody’s Analytics, annualized rent increases were from 4% to 5% during the Covid pandemic.

“There’s an anticipation that interest rates still have to rise in the next six months for the Fed to get inflation back into its comfort zone,” LaSalvia says. “And with that, mortgage rates will stay relatively high.”

Moody’s expects prices to grow more slowly in the second half of 2023 as long as mortgage rates stay low.

“There’s also an expectation that the Fed is going to pivot [away from continued interest hikes] after inflation starts to come down, which would then take a little pressure off the mortgage market,” LaSalvia says. This, in turn, should provide some price relief for renters, he says.

What Rising Rent Prices Mean for Relocation Policies

There’s no question that living costs are closely related to home renting and buying prices. This is why rent prices, rising or declining, can have an impact on an employee accepting a relocation assignment. While many might think that the only way to get an employee to move for their new job is to throw more money their way, there are relocation policies that can be set up to help offset the cost of living and make moving expenses more manageable.

First off, offering corporate housing options can help persuade an employee. Corporate housing is short-term housing from anywhere from 30 to 90 days. The primary purpose of providing employees with this benefit is to give them time to scout out neighbors or apartment complexes they might want to move into permanently in their new destination. This way, the employee doesn’t rush into signing a lease that they will not be happy with long-term.

Many employers also see success when they work with a relocation service provider who can guide them in lease management options. The most straightforward example would be for the employer to provide compensation for an employee breaking their current lease. Often, to break a lease on a rental property, it can cost too much to make it worth it. But there are relocation policies where lease break coverage can be included.

Let GMS Help with a Cost of Living Analysis

Global Mobility Solutions (GMS) has been the industry leader in relocation for over 30 years. We specialize in helping companies get their employees from point A to point B. Whether your employees need to sell and buy a home or break their lease and sign a new one, we can help you by setting up relocation policies that will make a smooth transition for you and your employee.

On top of rental and home-buying assistance, we also have great corporate housing providers who can set up your company with some short-term housing options.

And lastly, GMS’ expert team would be more than happy to provide you with some cost of living analysis for some of the major markets, not only in the US but international destinations as well. We assist with these analyses to make it easier for your employee to want to accept the relocation assignment.

At GMS, we understand how hard it can be to get the right person in the right seat, which is why we are here to help in any way we can. Reach out today to schedule a free consultation, where one of our relocation experts will review your relocation policies to see where improvements and cost-saving changes can be made.

Ready to Calculate YOur Program Savings? Request Access Now!

Tags corporate relocation, real estate trends

Corporate Relocation Corporate relocation tips Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips

How Relocation Management Software Can Help Streamline Your Company’s Move

Post author By Sam Hoey | CRP, GMS
Post date January 10, 2023

Young couple moving in new house. They are happy and using laptop. — Young couple moving in new house. They are happy and using laptop to buy stuff they need.

Learn the advantages of using relocation technology

The use of relocation software is becoming more crucial in the context of company mobility. This is because efficiency is paramount if you wish to relocate without causing undue disruption to your operations. That being said, Relocation Management Software can streamline the moving process for workers across town or the country. Moreover, with the right solution, you can reduce the time and money spent on moving while being more efficient. Furthermore, relocation management software can help you find the best movers and estimate the costs associated with your relocation. Therefore, if you need help with relocation, here is how relocation management software can help streamline your company’s move.

What Is Relocation Management Software?

Relocation management refers to the technology that supports and streamlines a company’s moving process. This can involve everything from keeping track of the employees moving to a new location to automating paperwork related to the move. This technology is most useful for companies that regularly relocate employees or offices. Additionally, it is also helpful for companies that provide support for workers who relocate temporarily. There are many features that a relocation management system can offer to help you improve the efficiency of your next move.

It Will Help You Track Your Staff in Real-time

Relocation management software can keep tabs on your staff in real-time, a considerable time saver during corporate relocation. This is hugely beneficial because if your company is moving personnel internationally, you can keep track of their whereabouts and other vital data while they travel. For instance, you will be able to keep an eye on the status of both the employee and their family members during the move.

It Makes Reporting a Lot Easier

The software facilitates personnel data monitoring and assists with reporting and analysis. As was previously noted, keeping tabs on your staff may improve your company’s ability to predict and prepare for the future during your company’s move. You will be able to observe how well your efforts to relocate are at all times. If something goes wrong or you notice that you are more efficient with your move, you can hire more help. In fact, according to moving experts, having numerous quotes for moving providers as a backup is always a good idea.

It Will Help You Manage Your Whole Move More Effectively

Relocation management software may aid in administrating any relocation project and the organization. Keeping track of employees from various divisions will be challenging if you relocate your whole company on short notice. However, relocation software helps you keep tabs on office space requirements. It may also be helpful if you need to relocate workers from many different locations since it simplifies process management to guarantee a seamless move. With this system in place, tracking what you need to do during an employee’s relocation is much easier. If you do this, your staff members are less likely to refuse to leave or quit altogether due to the struggles of the relocation.

A Few Additional Benefits of Relocation Management Software

The advantages of using move management software become apparent as early as the planning phases of relocation. An overview of the benefits that companies may anticipate from basing their corporate relocation plans on advanced move management software is as follows:

Unified focus. The software replaces paper papers and online folders with a single location for all relocation-related information. Everyone helping to plan the relocation shares information via a central hub. As the need for a united emphasis on important goals grows, centralization of relocation data becomes essential.
Timeline-specific planning. With the help of relocation management software, you can organize various moving elements into a logical sequence. Organizing the transfer into manageable segments and planning for the following steps ahead of time makes for a more streamlined transition.
Checklists and prerequisites. Using an index is one of the simplest and most efficient ways to keep yourself on track. Before, during, and after relocation, you should be using a list. Integrating checklists into relocation software helps teams stay on task and provides transparency into what has been completed, what remains, and who is accountable for what.

Digital integrations. Ensure that everyone in the company is aware of the new office layout by synchronizing corporate directories. Use facility support tickets to ensure the maintenance crew immediately addresses loose ends. Bring state-of-the-art Internet-of-Things (IoT) sensors to keep track of operations in old and new buildings. Effective relocation relies on careful planning and careful execution.

GMS Leads the Industry in Relocation Technology

Now that we’ve gone over all the advantages of relocation management software that can help streamline your company’s move, you shouldn’t have trouble deciding whether you need to use it. All these advantages add up to one thing: a relocation that goes off without a hitch, with no hiccups caused by mistakes or other mishaps. The less complicated the process of getting from point A to point B, the less impact it will have on daily business. Therefore, if you are not using it, you should start now.

Global Mobility Solutions (GMS) takes pride in leading the relocation industry regarding customer-facing technology. A few years back, we created MyRelocation, a cloud-based tool for our clients to track and manage their relocation process from start to finish. Please schedule a free consultation today if you are ready to contact one of our global mobility experts to discuss your relocation needs.

We're Here to Help! Request a Courtesy Consultation

Tags corporate relocation, Corporate Relocation Services, relocation tips

Global Mobility Global Relocation Global Relocation Tips

International Relocation Assignment: Hassle or Major Career Benefit?

Post author By Michael Barone
Post date January 4, 2023

Group of business people at the office, two of them shaking hands for successful deal, colleagues around applauding

Is Accepting a relocation assignment from your job suitable for your career or more trouble than it's worth?

Working in an organization with multiple locations throughout the country or internationally can be a great way to get a well-rounded career. But often, these companies with offices in various parts of the world will ask their rising star employees to relocate for a new position or to help propel a different branch. These international relocation assignments might be permanent or can be short-term.

The question becomes whether relocating for a job is worth it or just a major hassle. In most cases, the short answer is that it is worth accepting the relocation assignment for numerous reasons. It can open the door to different positions within the company and give you experience that can look great on any resume. But like anything else, there are some challenges when relocating for a job.

What to Consider Before Accepting a Relocation Assignment

When your job gives you an offer letter for a new position that requires relocating, it is always a good idea to ask about pay, job title, job duties, etc. But it is also worth asking upfront what kind of relocation package the company will provide for you if any. If the company does not offer relocation benefits or reimbursement, moving for a new position might be challenging and not worth it.

Companies that provide comprehensive relocation packages do so to make accepting the assignment a no-brainer decision. Most relocation assistance programs include help with the following:

Shipment of Household Goods

Packing and transporting your belongings to your new destination is a massive part of the moving process. If the company is willing to provide a moving company to assist with this, it will make the relocation process much easier for you. It should be noted, though, that it is common for companies to reimburse for moving costs. While this isn’t the end of the world, and might not be a deal breaker, what this does mean is you will be on your own for packing and shipping your household goods. Then the company will pay you back for all, or most, of the expenses of hiring the moving company.

Corporate Housing

Also known as short-term housing options, this benefit is much more important for a short-term relocation assignment but can also come into play for a permanent position move. Corporate housing is a place to live while you’re on assignment for 14-90 days. It is more important for short-term work assignments because no one wants to buy a home or pay to rent an apartment for as long as needed. If the company has a corporate housing setup, it will usually be an apartment or condo to live in while you work at the new destination.

As mentioned, corporate housing options can also come into play for permanent relocation assignments. Often, the transferee can utilize corporate housing for a short period while they decide where to buy a home in their new destination.

Family Support and Cultural Training

If you are looking into taking a permanent position in a new destination, ask your company how they can help with family support or cultural training. This is especially vital if you are taking on a global assignment. Ask if there are programs such as career services for spouses or special school programs for children. And of course, if it is an international relocation, ask about language training.

GMS Believes Accepting a Relocation Assignment Is a Great Career Move

Global Mobility Solutions (GMS) has been helping companies relocate their employees for over 30 years, so we have seen firsthand how fast an employee’s career can grow when accepting a relocation assignment. But the employee will only succeed if supported with the right relocation benefits. On average, we have consistently urged companies to review and update their relocation packages every 12 to 16 months.

When reviewing your employee relocation benefits, set up a free consultation with one of our relocation experts. We are one of the best international moving companies in the world. Our team will listen to your wants and needs, then help you create relocation benefits that will ensure a smooth relocation process for your employees, hoping they will succeed for your company.

We're Here to Help! Request a Courtesy Consultation

Tags global mobility, global relocation, international moving companies, international relocation

Many household goods shipping companies are investing in air travel

Ocean Freighters Turning to Buy Air Planes

How Increased Airfreight Will Affect Global Mobility & Relocation Industry

Ready to Calculate YOur Program Savings? Request Access Now!

Here is an overview of everything you need to know about getting an employee from point A to point B

Setting Goals for Relocation Services

Key Elements of Relocation Policies

It’s HR’s Job to Introduce and Education New Employees about Relocation

Need Help Updating or Creating Relocation Services?

We're Here to Help! Request a Courtesy Consultation

Many real estate experts are calling for rent prices to rise

Expect above-average rent price increases for the first half of 2023

What Rising Rent Prices Mean for Relocation Policies

Let GMS Help with a Cost of Living Analysis

Ready to Calculate YOur Program Savings? Request Access Now!

Learn the advantages of using relocation technology

What Is Relocation Management Software?

It Will Help You Track Your Staff in Real-time

It Makes Reporting a Lot Easier

It Will Help You Manage Your Whole Move More Effectively

A Few Additional Benefits of Relocation Management Software

GMS Leads the Industry in Relocation Technology

We're Here to Help! Request a Courtesy Consultation

Is Accepting a relocation assignment from your job suitable for your career or more trouble than it's worth?

What to Consider Before Accepting a Relocation Assignment

Shipment of Household Goods

Corporate Housing

Family Support and Cultural Training

GMS Believes Accepting a Relocation Assignment Is a Great Career Move

We're Here to Help! Request a Courtesy Consultation

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