A General Rate Increase (GRI) is currently planned for several ocean freight markets next month, despite the current low demand in global container shipping.
Carrier communications suggest that a wave of increases could be introduced in November, which follows a recent bout of blanked sailing announcements from steamship lines this month.
By cancelling voyages ahead of their intended journey times, capacity is reduced with the intention of creating artificial demand levels. This tactic is often a tell-tale sign that a rate increase is on the horizon.
Asia origin markets are being targeted to European and North American destinations, with indications that other markets may also be impacted. However, at this stage it is impossible to gauge the level of increases, which will be dependent on the trade and specific carrier.
Whether a GRI is sustainable during the current global climate remains to be seen, but our advice for the time being is to be prepared for increases.
Westbound will continue to monitor the situation during the next few weeks and will notify customers of any upcoming changes to rates.
If you have any questions regarding the above, then Westbound are here to help. So, please do not hesitate to contact us.
