Welcome to Mobility Minute, a newsletter published every Friday byWorldwide ERC®for the benefit of members and the global mobility and relocation industry. Here's a quick glimpse of what you'll find in this week’s issue:
Canadian Employee Relocation Council Responds to Canadian Ban on Home Purchases
The Biggest Ocean Shipping Lines Are Turning to Airfreight
Sustainability Around the World
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Canadian Employee Relocation Council Responds to Canadian Ban on Home Purchases
The two-year moratorium Canada has enacted on home purchases by foreign buyers goes into effect on 1 January 2023. This legislation would impact the ability of foreign-owned relocation management companies (RMCs) to offer some traditional services when relocating employees across the border and even within Canada.
On 4 November, the Canadian Employee Relocation Council (CERC) met with officials from Canadian Mortgage and Housing Corporation (CMHC) and the Department of Finance to outline their concerns and provide recommendations. Read CERC's submitted comments to the CMHC Consultation Paper.
Worldwide ERC® supports the efforts led by CERC to obtain exemptions for RMCs not headquartered in Canada, as well as to ensure all temporary foreign workers are included in the implementing regulations. We plan to write to Canadian officials and encourage our members to do so as well.
The Biggest Ocean Shipping Lines Are Turning to Airfreight
As shippers look for a more efficient way to move goods around the world, ocean freight companies are adding air cargo to their businesses. Unlike last year when businesses were willing to pay high airfreight rates to avoid ocean shipping disruptions around the holidays, this year's cost declines for airfreight suggest a return to normalcy.
Why is this important?
As airfreight rates become more affordable, companies and their employees are increasingly choosing to ship goods by air. With more employers offering lump sums for relocations, and ocean shipping delays being commonplace, transferees are choosing to bring fewer of their belongings with them when they move abroad. The fewer belongings somebody is moving and the quicker they want their move to be, the more likely it is that they will choose airfreight for their next relocation.
While travel is not expected to bounce back to 2019 levels until 2026, business travel is expected to increase by 33.8% by the end of 2022, according to the Global Business Travel Association (GBTA.) In a July 2022 GBTA survey, 85% of 400 business travelers said that they definitely need to travel to accomplish their business goals, and over 75% said they anticipated “more” or “much more” need to travel for work in 2023.
Why is this important?
While there has been a switch to prioritize remote and virtual work, connecting in person is irreplaceable for many companies and organizations over the world. So, is there a way to travel for work and gather in person sustainably? The good news is that companies do have options to help make their current business travel more sustainable including train and carpooling.
A recent Forbes article that compared the Canadian and American immigration systems quoted Lynn Shotwell, president and CEO of Worldwide ERC®.
Global Economic Snapshot
The Department of Homeland Security has identified the foreign countries whose nationals are eligible to participate in the H-2A and H-2B nonimmigrant worker programs. — Federal Register
With international climate aid yet to win support in Congress, the Biden administration has orchestrated a new proposal from major philanthropies and companies that would funnel private money to developing countries for clean energy development. —The Washington Post
Researchers at Goldman Sachs expect U.S. home prices to decline between 5% to 10% from peak-to-trough—with their official forecast model predicting a 7.6% drop. If it comes to fruition, it’d surpass the 2.2% decline between May 1990 and April 1991. That would make this ongoing correction the second biggest home price decline of the post-World War II era. —Fortune
Industry data show business travelers are taking longer trips than before COVID-19, leaving airlines adjusting flight plans. Environmental concerns, rising ticket prices, increased flight cancellations amid staff shortages, and a boom in online videoconferencing are all undermining the single-day trip option as an industry standard.
One-day business trips are out, longer stays are in.
Corporate travel agency CWT said, in global terms, the proportion of one-day domestic trips has fallen by more than 25% compared with 2019 levels as online meetings grow in popularity. In markets from Australia to the United States, airlines are having to adapt to maximize revenue. U.S. carriers, for example, are adding more midweek flights as travelers take more trips that blend business with leisure.
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