Tariffs and other critical issues continue to impact both the global business landscape and the mobility industry specifically (most notably in the areas of household goods shipments and auto shipments). Below, we have provided critical highlights for both.
Household Goods
A recent WERC article notes the following cost and timing impacts.
Cost Impacts
- Tariff Increases: U.S. tariffs on imports rose to as high as 145%, significantly affecting household goods like furniture and electronics. Even with a temporary reduction to 21%, future increases remain uncertain.
- Freight Rate Volatility: Shipping lanes have seen rate swings of up to 40%, driven by underutilized vessels and unpredictable demand.
- Container Costs: Container shortages, especially for used dry containers, have led to higher leasing and purchase costs, directly impacting household goods shipping expenses.
- Hidden Surcharges: Unexpected fees are being added post-quotation due to operational disruptions and rerouting.
Timing Impacts
- Blank Sailings & Booking Cancellations: Up to 50% of U.S. container bookings have been canceled, causing unreliable sailing schedules and planning difficulties.
- Port Congestion & Rerouting: Major European ports are experiencing severe delays, and avoidance of the Suez Canal is extending transit times. These issues can stretch delivery windows by weeks.
- Unpredictable Schedules: Last-minute vessel changes and dropped port calls are making it hard for movers to lock in reliable pickup and delivery dates.
Bristol and our supplier-partners continue to work to identify ways to limit costs and delays in shipping. While we have been successful in most cases, the issues noted above have impacted and will continue to affect international shipments. Businesses and individuals should plan to mitigate delays. While this situation remains fluid, Bristol recommends booking moves as early as possible to avoid extensive delays. We also recommend setting the expectation with relocating employees that flexibility with shipment dates and receipt of goods is critical, as the international shipping landscape continues to evolve. Bristol will continue to provide updates as tariff and labor issues develop in the coming months.
Auto Shipments
In addition to the impacts noted above, we continue to see tariffs impact auto shipments. Below are the current tariff impacts and rules for vehicles entering the U.S.:
- Any vehicles with a VIN beginning with a 1, 4, or 5 are duty-free as they are U.S.-made; however, these do require either a letter of conformity or U.S. title
- Duties and Rates:
- European Union: 15% total reciprocal tariff and duty combined
- Japan: 15% reciprocal tariff + 2.5% duty
- Korea: 15% reciprocal tariff + 2.5% duty
- Canada: 35% reciprocal tariff + 2.5% duty
- Vehicles Over 25 Years’ Old Only: 2.5% duty, no reciprocal tariff
- All entries are subject to additional customs fees:
- .3464% Manufacturers Processing Fee (air, sea, or land)
- .125% Harbor Maintenance Fee (sea only)
Please note that tariffs are imposed based on the country of vehicle manufacture (typically indicated by the VIN), not the country from which the vehicle is imported.
Bristol would like to thank Reindeer Auto Relocation for tariff-related auto shipment information.