Demand levels for ocean freight services from Asia have been receding during the last few weeks, which makes the announcement of an upcoming General Rate Increase (GRI) feel a little bit strange – but that’s where we are.

Despite declining demand and the respective easing of rate levels recently, carriers have planned a GRI for November 1st. This along with along with the announcement of blank sailing schedules throughout November will impact freight rates.

Whether market conditions make this increase sustainable remains to be seen. The GRI levels may not end up as high as currently suggested, or it could fall through completely, which always makes it a difficult time for us to know what to communicate to customers.

What we do know for sure is that carriers have stepped up blanked sailing programmes over the next few weeks and there will be gaps in schedules. Several sailings are being skipped (cancelled) and by withdrawing capacity carriers may be able to create artificially high demand to support this planned increase.

The Westbound teams in the UK and Asia are monitoring this situation very closely. In the meantime, we suggest customers prepare for the worst, that a rise in ocean freight rates may be incoming next month. Please see our company newsletter for more details in relation to how Westbound can help reduce the impact of these industry changes for our customers.

If you have any questions regarding the above, then Westbound are here to help. So, please do not hesitate to contact us.