To simplify matters, AGS advises setting an international moving allowance per employee, either in cubic meters or total value. But at what value should their allowance be set? The answer to this question can be found by looking at the three main areas that impact moving costs.
The mode of transport
Household goods can be moved by road, air, or sea. When it’s available, road is the best choice if you’re looking for a balance of speed and affordability.
Air transport is faster but more expensive, while sea freight is cheaper but slower. Another consideration when opting for sea freight? Single or shared containers. Shared containers – where shipments from multiple clients are grouped into a single container – are the most economical and environmentally friendly option but also the slowest, as the containers need to fill up before they leave port.
Established movers like AGS also offer flexible transport solutions, including shipping larger items like furniture by road or sea and sending items for immediate use by air. This approach ensures that your employees can settle in quickly and comfortably at their new location.
Insurance coverage
Despite best efforts, belongings do sometimes get damaged in transit. As such moving companies will always advise you to take out insurance to cover your employees’ shipments. But here, too, there are multiple considerations that will influence the final rate.
In addition to standard all-risk insurance, there are optional add-ons:
- Sets-and-pairs coverage replaces entire sets – like dishes or a multi-part coffee machine – if a single part breaks.
- Non-visible damage covers electronic and mechanical equipment that no longer works after transit even though it has suffered no visible damage.
- Mould insurance covers damage from prolonged exposure to moisture, which can happen on moves to or from humid climates.
Whichever insurance you opt for, it’s important to know that it will only be valid if the moving company packs your employees’ belongings, thereby ensuring professional and safe packing.
Moving companies like AGS will handle most of the communication with your employees regarding packing and insurance. But as the employer you should clearly communicate any limits on move value or insurance to avoid confusion.
To make the most of their insurance coverage, it’s important that your employees create detailed inventory lists of the items they are insuring. This is where it pays to be specific, because just a few extra words can make all the difference in case of loss or damage.
It’s also advisable to use the current market value of items in the destination country, as insurers will use this to calculate compensation. Because of the cost implications, there is a temptation to undervalue items to save on fees, but this can backfire if something gets damaged or is lost.
Customs and Tax
Depending on the destination country, it’s likely your employees will be charged customs duties on their shipment of household goods, although certain countries do offer a customs exemption for corporate moves. Your moving company should be able to advise you which costs to anticipate. These can vary widely depending on the contents of the shipment.
To ensure smooth customs clearance and therefore avoid incurring extra customs storage costs, they will also prepare all relevant documents, like copies of inventory lists and passports, on your behalf. This will smooth the way for clearing your employees’ shipments through customs as quickly as possible.
Based on your priorities and budget, your moving company will advise you in detail on each of the cost considerations mentioned in this article. They will also be up to date on any current events, local or international, that could affect move costs, like container shortages or port congestion. With their input, you will be able to form a realistic idea of where to set your employees’ move allowance value.
Ready to send your employees overseas? Contact us today for a free moving quote!