At your service?

It’s a tougher time than ever to be a mover, with FIDI’s 2024-25 State of the Industry report citing the past year as being one of the hardest yet for the industry.

A constant factor is clients’ expectations of strong levels of customer service, often at reduced rates, so FIDI Affiliates are having to do more, better, and think smarter – for less financial reward.

While the storm of the COVID-19 crisis has ebbed away, another headache has emerged, according to executives at some FIDI Affiliates – room for improvement on quality control.

All FIDI Affiliates must pass the demanding FAIM audit quality bar on a regular basis to display the FIDI accreditation, but some believe there is still variation in the execution of moving services across different regions.

Nick Lacayo, CEO of Transworld Moving Ltd in Brazil, says: ‘Despite the high costs, the execution of services – from packing to internal logistics – sometimes falls short of expectations, resulting in significant damage to transported household goods.

‘At Transworld Moving, we maintain a complaint rate of just 0.3 per cent for door-to-door moves in Brazil. In contrast, partners in some other regions report an alarming 20 per cent complaint rate, a figure that far exceeds the global average and is entirely unacceptable.’

According to Lacayo, these levels ‘not only compromise customer satisfaction, but also place undue strain on insurers, who are forced to cover claims caused by avoidable errors and a lack of professionalism’.

He believes the root cause of the issue is the way booking agents sub-contract their services, claiming that, in some regions, they ‘often delegate tasks to third parties without proper quality control. As a result, poorly packed shipments, damaged goods and negligent deliveries have come to this high rate of a 20 per cent claims ratio’.

Lacayo adds: ‘There is an urgent need to revise the responsibilities and accountability of international agents. Leading moving associations – such as FIDI – must spearhead this initiative by establishing new regulations that hold sub-contracted agents directly accountable.

‘Origin or destination services must align with the standards expected by Latin American and global moving companies, ensuring that Brazilian companies such as ours are not unfairly penalised for errors occurring abroad. I feel strongly that FIDI Affiliates should use third-party services with companies that provide proven quality services – or that are FIDI members themselves.’

Lacayo is not alone in his perceptions of the challenges to service quality. While industry observers are noticing this trend throughout the world, some regions are more subject to it than others.

Philippe Mirault, Group Managing Director at Grospiron Mobility Solutions in France, claims the differences in service delivery have become ‘more pronounced’ in recent years, especially in certain regions. ‘This deterioration is noticeable in terms of packing standards and coordination,’ he says.

Several factors may be contributing to this trend: supply chain disruptions, labour shortages, increasing union pressures, and a general lack of skilled manpower. ‘The result is a growing inconsistency in the customer experience,’ says Mirault.

European Fragmentation

He continues: ‘In Europe, the situation is somewhat similar, but stems from different root causes. We are witnessing a fragmentation of the market, with a proliferation of small companies subcontracting most of the operational tasks. These operators often have limited control over quality, but are able to offer extremely competitive rates.’

In addition, movers have seen the emergence of digital platforms targeting corporate clients and private individuals.

‘While these platforms position themselves as innovative and cost-effective, their business model leaves little room for the traditional quality standards that established movers strive to maintain,’ says Mirault.

‘Despite this, FIDI members across all regions continue to invest significantly to uphold FAIM standards and provide consistent, high-quality service. The real challenge lies in the procurement policies of many clients, where price remains the primary decision-making criterion.

‘As long as cost continues to outweigh quality in vendor selection, it will be difficult to reverse this downward trend.’

A different perspective

Not all FIDI Affiliates agree that services across the international network can vary. Laura Ganon, CEO of FINK Mobility, based in Brazil and former FIDI President, says: ‘We don’t have any complaints about the quality of packing and service in general from any country.

‘The reason I have a different opinion is the quality level of the partners we work with. At FINK, the partners we choose to work with around the world are always top-quality partners, and they know how to pack very well, use excellent packing material and offer very good service.

‘My advice to anyone who believes service levels need improvement is to focus more on quality than on price and choose better agents, because there are several in all countries.’

At Gerson & Grey, also in Brazil, Regional Director Richard Gerson sees things slightly differently. ‘While I wouldn’t say there has been a general decline in service quality, we have observed some challenges. From our perspective, these issues are largely because of factors such as labour shortages, port congestion and federal agent strikes.’

‘That said, we have also seen that effective coordination, proactive planning and clear communication can mitigate these problems significantly. We prioritise transparency and early engagement with clients and partners, to maintain a high level of service.

‘More than isolated incidents involving damage to goods, what we’ve encountered more frequently – and with greater complexity – are logistical delays… which directly affect timelines and overall predictability.’

According to Gerson, another challenge is inconsistency in the application of regulations and procedures. These can vary significantly between ports and airports across South America. For instance, in some locations, the importation of alcoholic beverages as part of a household goods shipment is permitted, while in others, it is strictly prohibited. ‘This situation is difficult to explain to clients and requires constant updates and very careful communication,’ he adds.

Race to the bottom on pricing

Elsewhere in the world, other FIDI Affiliates have expressed concerns. Fábio Manuel, CEO at Invictus Relocation Services in Portugal, says: ‘There is room for improvement in international moving services across several regions. While there are many dedicated professionals in our industry, we are witnessing a gradual erosion of quality in some corridors – not because of a lack of capability, but rather a growing pressure to meet unrealistic pricing expectations.

‘A concerning trend we’ve observed is the widespread race to the bottom on pricing. To secure jobs, many companies feel compelled to accept rates that are simply unsustainable if one intends to deliver consistent, professional service. This cost-cutting inevitably leads to corners being cut, too – less training, reduced care, or unreliable sub-contractors.

‘The outcome is predictable: diminished service levels and frustrated customers.

‘Quality in our industry should not be treated as a variable, adjusted to fit financial limitations. It should be a constant.

‘If we are to restore higher standards worldwide, it starts with transparent communication about real operating costs and a shared commitment to fair pricing. Otherwise, we risk devaluing the very expertise that defines professional moving.’

Evolving demands

In Spain, DLF International Movers has noted variations in practices and services. Cristina Mesonero, the firm’s International Corporate Manager, believes there is always room for improvement, ‘not because the industry lacks professionalism, but because global moving demands are evolving faster than many providers can adapt’.

‘While standards of packing and coordination remain high across most trusted networks, we do see inconsistency in communication practices, digital traceability and responsiveness across certain regions,’ she says.

‘The rise in sustainability regulations, low-emission zones and cross-border compliance adds complexity to already demanding operations. Combined with geopolitical shifts, container repositioning issues and fuel-price volatility, the global logistics environment challenges even the most experienced providers.

‘To ensure consistent service quality worldwide, the sector must invest in workforce development, shared performance benchmarks and proactive client communication.

‘More collaboration between agents and a stronger commitment to transparent processes will raise the standard for everyone.’

While experiences across the international moving community clearly vary, most Affiliates are facing real challenges in today’s tough business environment.

Based on the headwinds experienced in the industry in the past few years, it looks unlikely that doing business will get any easier any time soon.

Jesse van Sas, FIDI Secretary General, on the challenge to quality – and how FIDI is helping its Affiliates uphold their reputation for top-tier service

‘We are hearing growing concerns from FIDI Affiliates and their clients about declining service quality in certain markets, with issues ranging from inconsistent packing standards to weak coordination. While the root causes vary – from global labour shortages and supply chain disruptions, to increasing union pressures – we must also acknowledge the increasing strain placed on service providers by aggressive procurement strategies, particularly when driven by third parties. Excessive pressure on rates inevitably comes at a cost to quality.

‘This is not a challenge unique to one region – it’s a global industry trend that affects us all. At FIDI, we take these signals seriously. We are not merely observers of the situation; we are actively working to support our Affiliates in maintaining and demonstrating the high service levels expected of FAIM-certified companies.

‘Independent, verified quality standards such as FAIM are more important than ever in this context. They provide a necessary counterbalance to cost-driven decision-making and give our industry a benchmark for operational excellence.

‘We also use our relationships with key partners in the industry – including major bookers and RMCs across the global relocation landscape – to defend quality service and advocate for the value our members bring to the table.

‘Upholding quality is not just about compliance – it is about protecting the reputation of the international moving industry and ensuring that our clients receive the professionalism and care they rightly expect.’