Ocean freight carriers currently plan to introduce a General Rate Increase (GRI) for shipments moving from Asia on November 1st, which follows the announcement of a host of blanked sailings.
Market conditions had seemed to be returning towards normality during recent weeks with demand softening and ocean freight rate levels receding for the first time since vessels were rerouted away from the Red Sea earlier this year.
The current supply and demand levels do not suggest that an increase is achievable. However, by confirming numerous blanked sailings (cancelled voyages) and therefore withdrawing capacity, carriers may be able to create artificial demand levels that would help push an increase through.
Currently, the level of the increase vary from carrier to carrier up to around $1000-1200 per forty foot container.
There is no guarantee that the currently proposed levels will hold up, or whether a GRI will actually be introduced. However, it would be remiss of us to not advise that increases may be on the horizon from next month.
