International Relocations: Corporate Concerns

The global relocation market continues to grow, with a forecast increase in size and value of 2.91% during the next five years. 

Organisations are keen to enjoy the benefits of international relocations, such as:

• Cost savings, via productivity and potential tax savings
• Skills transfer, avoiding lengthy and costly local recruitment
• Consistency of practises and branding
• Seizing of new opportunities
• Employee retention and development

There are, however, key concerns often raised by corporate clients. It’s important to recognise and address these issues as soon as possible during the relocation process.

Three Business Concerns About Corporate Relocation

1. Rising Transportation Costs

Two elements directly impact transportation costs: fuel and space.

Diesel prices reach a staggering 199.09p per litre in June 2022. Heavily influenced by the war in Ukraine, this all-time peak in cost has resulted in increased road haulage prices.

Consumer demand for goods couldn't be met during the pandemic as there were global restrictions on the movement of products and people. As the world re-opened, the backlog of orders meant that demand outstripped supply regarding container space. This affected lots of everyday items, such as computer chips for new cars and technology. The industry is still recovering. The scarcity of space has driven up shipping costs. As an example, prices on major east to west trade routes rose by 80% year on year, according to Drewry’s composite World Container Index. The difficulty in securing space impacts the transportation of international assignees’ household goods.

The BTR Response: Our team works closely with our trusted network of partners across the globe to ensure the most cost-effective routes are secured for our clients.

1. Delays

Supply chain disruption reached an all-time high during 2021 – 2022. UNCTAD reports containers typically spend 20% longer in the system (dwell time) for door-to-door transactions. (United Nations Conference on Trade and Development.) Currently, 70% of ships are running behind schedule and hindered by port disruption. (30% of container ships were delayed prior to the pandemic.) Industrial action has contributed to delays in some ports. This means that the timescale for implementing international relocations must be adjusted accordingly.

The BTR Response: Our network of contacts ensures we are fully informed of expected timescales for relocation routes. We keep our clients and assignees fully informed. If necessary, we explore alternative solutions and present these to clients.

1. Environment, Social and Governance (ESG)

Many clients want to work with organisations who are proactive about ESG, demonstrating that it positively impacts their businesses. By actively requiring ESG measures from suppliers and partners, as well as internally, organisations can directly influence issues such as pollution, CO2 output and waste. Corporate clients are keen to ensure international relocation processes contribute to ESG requirements.

The BTR Response: We are conscious that our industry traditionally has a high impact on the environment. We work hard to ensure that our own processes – and those of our partners - are as sustainable as possible, adding value to international relocations. This is an ongoing business priority for BTR.

“It is essential that corporate clients achieve the best possible value and service when relocating employees,” says Sarah Huntridge of BTR international. “It is natural to have concerns, especially in today’s fast-moving world. We believe in open communication to explain the issues involved and offer solutions wherever possible.”

Do you have concerns about your talent mobility programme?

Would you like to explore alternative solutions for your international relocations?

Talk to the friendly experts at BTR International. Enjoy bespoke advice without obligation to allay your concerns and find the best way forward.