International Household Goods Survey

According to the 2008 Worldwide ERC® Transfer Volume & Cost Survey, household goods shipping is one of the more costly benefits organizations provide in their relocation policies.1 This has resulted in an increasing number of companies outsourcing the management of their household goods contracts to Relocation Management Companies while organizations contracting directly with carriers have declined. This month’s Paragon Pulse presented several issues faced by Companies providing HHG shipping services.

Paragon Pulse asked the question “How many HHG companies does your company have agreements with?” Of the responses, half had only one carrier while 38% had two and 12% had four or more.  Depending on a company’s relocation volume, one company may be able to provide complete service while companies with greater volume may need more providers in order to service every move.  Having a single choice may present issues with competitive pricing, scheduling, group moves, and quality of service among others. 

Paragon’s Partner Select Program addresses the many complexities of International HHG shipping while providing the best pricing for our clients by creating a bidding process for each move.  We secure the best-in-class providers, then moves are actively bid on by three of Paragons’ partners using a single survey completed at authorization.  This has resulted in significant savings to our clients and a favorable customer satisfaction rating.

Another critical issue raised in this month’s Pulse was “Does your company require immigration documents prior shipment of goods"?  Many countries do not permit HHG shipments to even commence until the actual work visa is in place.  Surprisingly, of the survey responses, only 38% required permits/visas be in place before shipping begins, leaving 62% at risk of a myriad of problems including but not limited to large fines for premature shipping.

Placing a cap on the shipment of HHG is one method of keeping costs to a minimum.  Of the survey responses, the cap appears to be split 50/50 between weight and size.  Thirty-eight percent of the companies responding provided an allowance in lieu of shipping for furniture/appliances.  About one-quarter of respondents also placed a limit on duties/taxes paid to the host country.  With so many elements involved with the shipment of International HHG, programs like Paragon’s Partner Select™ may be more beneficial than ever in eliminating complications and keeping costs minimal.

   

 
 
 
 
 
 
 Survey Participation

 
 
April's Pulse data represents
results from corporate
relocation professionals from
organizations of the following size:
 
1,000 to 10,000           25% 10,001 to 20,000         12%
20,001 to 50,000         25%
50,001—100,000          25%
100,001 +                   12%
 

Final survey results are
included in this document.


 
 
  
April 2010 Survey Results 
 
How many HHG carriers does your company have agreements with?
One
50%
Two
38%
Three
0%
Four or more
12%
Other, please specify
0%




Does your company or shipping provider require permits/visas to be in place before shipping begins?
Yes
38%
No
62%
Other, please specify
0%




Does your company place a cap on the shipment of HHG? Please select all that apply.
Limited by size
50%
Limited by weight
50%
By assignee (rank)
12%
By assignment (long term/short term/one-way)
38%
Other, please specify
12%




Is there a limit on duties/taxes paid to host country?
Yes
12%
No
75%
Other, please specify
12%




Does your company offer an allowance for furniture/appliance rental in lieu of shipping? Please select all that apply.
Short-Term
0%
Long-Term
38%
One-Way
12%
Not Offered
62%




What is the biggest complaint by assignees regarding the shipment of their International HHG?
Damages/Claims
0%
Not on time (timeliness)
57%
Packing
0%
Unpacking
0%
Unavailability of Customer Service
0%
Other, please specify
43%

 


 
  
Questions or comments? Email us at consultingservices@paragondri.com or visit the News section of our website at www.paragondri.com.