Suggestions of a General Rate Increase (GRI) for ocean freight movements from Asia are the hottest topic of debate right now, as carriers seek to move rates upwards.
Westbound are hearing that many steamship lines are considering or planning GRI’s in May on Asia-European trades, although nothing has been announced officially as of yet.
We understand that carriers are projecting an increase in demand ahead of the peak season, and with their capacity management programmes restricting space levels of late, they seemingly see an opportunity to uplift rates in the next few weeks.
It is unclear whether a GRI will actually hold in the current market, but the succession of blanked sailings has certainly created an artificial position where demand is rivalling supply. With peak season approaching we would expect to see capacity returning to the market which raises the question, can GRI’s be upheld as this capacity increases?
Westbound will continue to monitor the situation and will update customers further should GRI’s be announced officially.
If you have any questions regarding the above, then Westbound are here to help. So, please do not hesitate to contact us.
