GRI for Exports from Asia effective January 1st

Please be advised of a large GRI has been announced from Asia to the USA, according to the information provided by the American Shipper.

The Transpacific Stabilization Agreement (TSA), a group that represents 15 liner carriers that move nearly all the container cargo between the Far East and the United States, has announced recommended freight rate increases and 2016-17 service contract guidelines.

The announcement came after the Shanghai Shipping Exchange said the Shanghai Containerized Freight Index (SCFI) estimated the spot rate from Shanghai to the U.S. West Coast was $922 per FEU, down 9 percent from $1,009.

For Jan. 1, TSA members are recommending large general rate increases – $1,200 per FEU to the West Coast and $1,600 per FEU to the East and Gulf coasts.

Several different carriers that these GRI’s will likely be implemented effective Janaury 1st  to the USA and other markets but would not last until capacity is cut and export volumes are up.

Carriers say their objective is to “establish more compensatory baseline revenue levels as they head into service contract negotiations, and in advance of the Lunar New Year holiday in Asia that begins in early February.”

TSA said for the coming contract year it will include adjustments to “non-rate charges and practices in areas such as absorption of chassis costs; free-time allowances; port and rail demurrage charges; equipment detention and per diem; full recovery of current and projected trucking costs; intermodal pricing; credit policies; and contract boiler plate terms.”

The TSA’s members include APL, China Shipping, CMA CGM, COSCO, Evergreen, Hanjin, Hapag-Lloyd, Hyundai Merchant Marine, “K” Line, Maersk, MSC, NYK, OOCL, Yang Ming, and Zim.
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