More Rumblings of Ocean Freight GRI's

There are more rumblings of ocean freight GRI's from carriers this month, despite low demand and the low success of previous attempts to raise rates.

At the risk of sounding like a broken record, suggestions of an increase from December 1st are circulating again, which may or may not come to fruition. At least one carrier has also confirmed plans to double their spot rates from December 15th, according to a report in The Loadstar.

We understand why carriers need to raise the rock bottom rate levels that mean they are running in the red, but it has become impossible to advise with any certainty whether announced GRI's will hold.

Blanked sailing programmes have been the carrier's weapon of choice to counter market conditions, by reducing capacity they are creating artificial demand levels as more and more voyages get cancelled, especially on Asia origin routes.

However, demand has been low for some time and the arrival of waves of new build ULCV's (Ultra Large Container Vessels) this year has not exactly left them well positioned to uplift rates. It is also worth mentioning that the period from December until Chinese New Year traditionally sees demand at its lowest.

Therefore, we may see a GRI on December 1st, or even 15th, or we may see further attempts to raise ocean freight rates fall by the wayside. The team at Croft are monitoring developments very closely and will notify customers directly of any rate adjustments.

‍

‍