Everyone at some point in our professional career within the international logistics world has heard the term.
A GRI, which strictly means “General Rate Increase” and as its translation says, it is a general increase in rates handled by shipping companies for freight. maritime.
Shipping demand
The GRI occurs when levels are very low in the market and shipping companies want to recover resources. But mainly it is a measure to avoid some type of monopoly that could be generated, causing advantageous situations for a single shipping company. The GRI are decided unanimously by applying all the increase agreed by TEU on the agreed date.
Usually shipping companies are in a market that behaves stable; They implement few increases but in these last months of 2017, many increases have been registered (approximately every fortnight). And it could arise because there is very little demand and an excess of supply, causing freight rates to have to drop sharply and the only way in which shipping companies can recover healthy levels for their operations is by applying a GRI every time they consider necessary.
The truth is that in many cases freight costs are usually decisive when buying or not; although they are announced at least 2 or 3 weeks in advance.
Our best advice is to have elaborate scheduling and coordination of upcoming loads with both the supplier and the freight forwarder. Keep the dates in mind with a detailed forecast to avoid any surprises or costs that have not been considered from the beginning.
we can help you
Because each case has different circumstances, it is necessary to identify all the variables or requirements of your project in order to determine the appropriate measures, which is why our experts at APR Cargo will be able to support you in any logistics project, creating a distribution strategy and providing you with all the necessary support during each of the phases of your project. operation.
Francisco Escorcia
Pricing Area