Announcing the Upcoming General Rate Increase (GRI) for Asia to Mexico Trade Routes
Effective from September 1, 2024, shipping lines will implement freight rate increases for trade routes from Base Ports in Asia to Manzanillo and Lázaro Cárdenas. Notably, Maersk (MSK) has announced an increase in the FAK (Freight All Kinds) rate to USD 55000.00/6500.00 per container, and it is expected that other shipping lines will follow this trend, resulting in higher rates throughout September.
Early Implementation of Rate Increases
Some shipping lines have already started implementing these increases ahead of time, canceling spot market rates in August and notifying of higher freight rates for available space in the final weeks of the month. This preemptive action indicates a significant shift in pricing strategies as carriers prepare for the upcoming GRI.
Current Situation and Vessel Capacity
Many freight forwarders have received information about a possible General Rate Increase (GRI) in September, leading to an acceleration of shipments during August to avoid higher costs expected next month. Due to congestion at various ports, many vessels are experiencing schedule delays, and shipping lines face challenges in mitigating these delays, resulting in reduced capacity in the market.
Additionally, more blank sailings are anticipated in the coming weeks, making it easier for shipping lines to implement rate increases. This reduction in available capacity further exacerbates the situation, as demand continues to outpace supply.
“Shipping lines decide four weeks before Golden Week in China (October 1-7) to reduce capacity and apply a significant General Rate Increase (GRI).” – Industry Insider
Summary of the upcoming freight rate increases for key trade routes.