Major steamship lines are proposing an October 1, 2016, general rate increase (GRI) for transpacific cargo from the Far East and India to the US and Canada. In the US/Canada, a previous GRI took effect as scheduled on September 1, 2016. In addition, a previously announced Peak Season Surcharge (PSS), postponed from August, is expected to take effect on September 15, 2016.
Current freight levels for shipments to all destinations within the US (in response to the September 1st GRI and Hanjin collapse) are expected to be higher in the interim; while rates have previously leveled out within a few weeks, some industry experts expect high rates/rate increases to continue for the remainder of 2016.
In addition to proposed GRI and PSS increases, new Bunker Adjustment Factor (BAF) levels for the 4th quarter of 2016, including Low Sulfur Fuel (LSF),will come into effect on October 1, 2016 – for transpacific cargo from the Far East/India to the US /Canada. West Coast shipments can expect a $35-$50 increase, over 3rd quarter levels, dependent on container size. For shipments to the East Coast, the expected increase over 3rd quarter levels is $65-$90 depending on container size.
Carriers’surcharges may vary. Proposed rates are as follows:
Announced PSS Levels – September 15, 2016:
20′ Standard Containers: USD $360
40′ Standard Containers: USD $400
40′ High-Cube Containers: USD $450
45′ Standard Containers: USD $510
LCL: USD $8 per CBM, min USD $8
GRI for shipments to all US/Canadian destinations – October 1, 2016:
20′ Standard Containers: USD $1350
40′ Standard Containers: USD $1500
40′ High-Cube Containers: USD $1690
45′ Standard Containers: USD $1900
LCL: USD $30 per CBM, min USD $30
Along with our overseas partners, Deringer will try to mitigate potential rate increases; however, the market will ultimately determine carriers’ flexibility. Please send an email to Deringer’s Marketing Department with any questions.