ICYMI: August 8-22

Jay Shetty is a British podcaster, author, and life coach, best known for his podcast On Purpose. He gives us a quote that we'll use to kick-off this bi-weekly update:

Knowledge is power, and it can help you overcome any fear of the unexpected. When you learn, you gain more awareness through the process, and you know what pitfalls to look for as you get ready to transition to the next level.

Jay Shetty

It is hard to stay on top of everything that is happening these days. In fact, many people are trying to tune out the news! But we sift through the information to find what's helpful for your global talent mobility and relocation programs. Here's what you might want to be aware of:

1. Worldwide: Per the Paramount Transportation Systems Service Alert on August 10, sea shipping continue to struggle with prolonged dwell times as the Red Sea safety crisis persists. The world's top five most congested ports are Durban, Ningbo-Zhoushan, Vancouver, Los Angeles, and Chittagong. According to Bloomberg, some shipping markets are seeing cost increases as a result. From just $1,660 at the end of last year, a 40-foot steel box now costs almost $6,000 to move. In a mixed message response, shipping giant Maersk claims spot rates have peaked for the year and will only come back down for the remainder of 2024. We suggest to expect rates to remain relatively high due to the amount of disruption, and the odds are high that something else could happen to keep rates high. 
    
2. United States: The article we link to below from FreightWaves shares that many are concerned about a possible strike at ports on the East and Gulf coasts. The contract between the International Longshoremen’s Association and the United States Maritime Alliance expires on Sept. 30. It means that we could see prices go up on international sea shipments of household goods, with possible delivery delays depending on the strike outcomes. We will continue to monitor this situation. 
   In the world of housing, Lending Tree notes that renting remains cheaper than buying, but rents have increased significantly over the past few years. This is especially true in many large metropolitan areas where already steep housing costs have climbed even higher. Between 2019-2024, one- and two-bedroom units grew by $450 and $505, respectively. Costs may continue to get worse due to increases in insurance rates. Many landlords intend to pass that cost on to renters. And “oh my gosh”, this is the hottest real estate market in the U.S. for the first time ever. 
   Lastly, per Fragomen, The EB-3 and EB-5 Unreserved immigrant visa categories are immediately unavailable and will remain so through the remainder of fiscal year 2024, which ends September 30, 2024.
    
3. Canada: Looking at this ImmPulse immigration update, Canada has updated and added greater detail on Intra-Company Transfer rules. They share details for start-up operations in Canada, Senior Executives and Managers, and Specialized Knowledge Workers. Though there were guidelines for these issues previously, the new versions are more precise. Employers should be careful to meet these guidelines and document the evidence required for compliance. 
   Also, from Raymond James, for non-residents of Canada who sell their Canadian real estate, there will be a change in the withholding tax on non-depreciable property. The rate increases from 25% to 35% starting January 1, 2025, to reflect the higher capital gain inclusion rate. 
   Lastly, Canada's freight rail network could come to a grinding halt this week, creating an economic crisis. The country's two largest railroad operators issued lockout notices to the Teamsters union, which represents nearly 10,000 workers. This could impact HHG shipments and raise costs. Routing via truck would eliminate delivery time issues but could also cost more. 
    
4. United Kingdom: Per BAL, the UK Home Secretary announced that the planned increase to the minimum income threshold for those bringing dependents to the United Kingdom on family visas is on hold. Previously, the Home Office announced a plan to cut net migration by 300,000 last December, reducing the number of dependents coming to the U.K. and increasing the minimum salaries required for overseas workers and family visa applications. Then, EIG reports that the UK is replacing physical immigration documents with a digital immigration status called an eVisa. This process is in full swing and will continue throughout the year. Action is required for individuals in the UK who do not already have a UKVI account and hold a physical immigration document such as a Biometric Residence Permit (BRP) or Biometric Residence Card (BRC). These individuals can create a UKVI account here. 
    
5. Cyprus: According to Fragomen, Cyprus has recently adopted the EU Blue Card Directive. This offers non-EU nationals seeking to work in the EU a professional experience eligibility pathway to long-term residence and citizenship and an increased validity period.
    
6. UAE: The Federal Authority for Identity, Citizenship, Customs, and Port Security (ICP) has announced a decision to grant a grace period for individuals violating residency regulations. Effective September 1, 2024, and lasting for two months, violators will be exempt from any financial penalties in accordance with the Federal Law on the Entry and Residency of Foreigners.
    
7. Argentina: Another update from the Paramount Transportation Systems Service Alert - ocean freight from Argentina has become increasingly challenging due to soaring rates, container shortages, and limited availability for loading cargo on upcoming vessels. Ships are bypassing the port of Buenos Aires, causing delays in import shipments and forcing current exports to be rolled over to future vessels. Since vessel frequency is not weekly, a rolled container could face a delay of at least 10 days before departure.
    
8. Brazil: As noted by FIDI, shipping costs to Brazil are surging due to increasing fees. New charges imposed on shipments into Brazil are driving up prices, with additional costs expected to be at least USD 1,000 for shipments originating from the US, the Caribbean, and parts of South America.
    
9. China: Per FreightWaves, due to an explosion in Ningbo, the world's third-busiest container port, all traffic was halted last week. The explosion aboard the Yang Ming vessel YM Mobility on Friday (Aug 9) reportedly involved organic peroxide materials. There were no injuries in the blast, but the terminal has been closed until further notice. The shutdown couldn’t come at a worse time, as record peak volumes for  North American imports are predicted for August. This is because of an “early peak” in June, as shippers rushed to get holiday merchandise ahead of expected supply chain disruptions in the fall.
    
10. New Zealand: EIG reports that on August 9, 2024, the government announced increases to visa charges, effective October 1, 2024. The new visa charges are published here.

And now, let's end this update with a little trivia question! Which country spans the most time zones?

1. Russia
2. France
3. China
4. United States

Here is a hint: In our Spotlight webcast on Life in Paris, we catch us up on Parisian mobility essentials, like immigration, housing availability, cost, and other key elements that must be addressed to help settle a family into Life in Paris. 

Here is the answer: France! If you include overseas territories, France spans 12 time zones.