Carriers will impose GRI on transpacific routes from May 1st

Affected by global epidemic and port congestion, the latest SCFI freight index fell for 13 consecutive weeks, and the freight rates of most ocean routes fell, down 0.82% from the previous issue.

Since Shanghai was locked down, the local Municipal Commission of Economy and Information Technology announced the latest guidelines for the resumption of work and production, the industry estimates that the volume of goods shipped by sea will increase rapidly from May; The industry has again reported price increases, and a number of carriers have announced an increase in the "General Rate Increase" (GRI) for the trans-Pacific route from Asia to the United States from May 1^st

For the specific GRI adjustment per FEU (40-foot container) is shown in the table below; the GRI of all other size containers is converted according to the formula.

Note 1: COSCO GRI only applies to all goods shipped under a service contract. The GRI, which was previously in force on February 15, 2022, has been delayed until March 15, 2022, and subsequently until April 15, 2022.

Note 2: Evergreen GRI charges $1,000 per 40 ft container and $2,000 per refrigerated container. The GRI of all other sizes of containers is converted according to the formula.

Note 1: Evergreen GRI charges $1,000 per 40 ft container and $2,000 per refrigerated container. The GRI of all other sizes of containers is converted according to the formula.

Note 2: HMM GRI charges USD 1,000 per 40 ft container for goods shipped to USWC, USEC East, and US Gulf Coast destinations, and USD 2,000 per 40-foot container for goods shipped to IPI, MLB, and RIPI destinations . The GRI of all other sizes of containers is converted according to the formula.

Note 3: Yang Ming GRI charges USD 1,000 per 40 ft container for destinations shipped to USWC, USEC East, and US Gulf Coast, and USD 2,000 per 40 ft container for IPI, MLB, and RIPI destinations. The GRI of all other sizes of containers is converted according to the formula.

Although the freight index fell for 13 consecutive weeks, the volume and rate of the global container shipping market in the first quarter were better than market expectations, and many carriers achieved new highs in the first quarter revenue. The US-line long-term contract will take effect on May 1. This year's negotiation has been smooth, and the average freight rate has doubled compared with last year. It reflects that long-term contract customers are optimistic about the market, which may become the driving force for the growth of carriers' revenue and profit in the second quarter.