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GRI (General Rate Increase)


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Understanding the GRI (General Rate Increase) in Maritime Carriers

What is the GRI in maritime carriers?

Maritime carriers implement the General Rate Increase (GRI) to adjust shipping rates.

Legal Requirement for GRI Disclosure in the U.S.

U.S. carriers must disclose GRIs at least 30 days in advance, as per U.S. law.

Timing of GRI Announcements and Implementation

U.S. carriers often announce GRIs on the first of the month, with implementation starting the following month.

Variability of GRI Rates

GRI rates can vary between months, carriers, and trade corridors.

Duration and Flexibility of GRI Effectiveness

Carriers can adjust prices during the GRI validity period.

Impact of 2020 Capacity Constraint

GRIs now frequently hold throughout the month due to the 2020 capacity constraint.

Illustrative Example: GRI Implementation

For example, in July, a carrier's rate is $1000/40'. They announce a $500/40 GRI for August 1 on July 1, resulting in revised pricing of $1500/40' as of August 1.

Key Takeaways

  • The GRI is a common rate adjustment mechanism in maritime carriers.
  • U.S. carriers must disclose GRIs 30 days in advance.
  • GRI rates can vary by month, carrier, and trade route.
  • Carriers can adjust prices during the GRI validity period.
  • The 2020 capacity constraint has influenced GRI implementation.

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