Major Steamship Lines have announced their intention to assess a General Rate Increase (GRI) on all US/Canada bound cargo from Far East and Indian origins. In the US/Canada, a previous GRI scheduled to take effect on December 1, 2015, for both destinations, was postponed.

For all 2016-2017 service contracts, liners in the “Transpacific Stabilization Agreement” (TSA) are seeking to establish long-term minimum rates of $1,700 per 40-foot equivalent unit (FEU) for containers moving to the West Coast and $2,900 per FEU to the U.S. East and Gulf Coasts.

GRI Levels Effective January 1, 2016

For Shipments to all US/Canadian destinations to/via West Coasts ports of Discharge
20′ Standard Containers: USD $1,080
40′ Standard Containers: USD $1,200
40′ High-Cube Containers: USD $1,350
45′ Standard Containers: USD $1,520
LCL: USD $24 per CBM, min USD $24

For Shipments to all US/Canadian destinations to/via East Coast and US Gulf ports of Discharge
20′ Standard Containers: USD $1,440
40′ Standard Containers: USD $1,600
40′ High-Cube Containers: USD $1,800
45′ Standard Containers: USD $2,025
LCL: USD $32 per CBM, min USD $32

Along with our overseas partners, Deringer will try to mitigate the upcoming rate increases. Ultimately, the market will determine carriers’ flexibility. However, as a result of global economic uncertainties and a decline in spot-market rates on containerized shipments from Asia to the US/Canada, rate volatility is possible and there is potential for rates to be at, or close to, the published GRI levels. In addition, shippers should prepare for increased rates throughout 2016.

Deringer will continue monitoring GRI announcements and will work to mitigate additional fees when possible. Please send an email to marketing@anderinger.com with any questions.