A General Rate Increase (GRI) is an adjustment to ocean freight rates imposed by shipping carriers to compensate for rising operational costs, fuel prices, and market demand fluctuations. GRIs typically affect specific trade lanes and apply to all shipments within those routes.

How General Rate Increases Work

• Announced by carriers in advance, often at the start of a new month or quarter.
• Applied to base ocean freight rates but do not impact additional surcharges like bunker fuel or security fees.
• Varies by trade lane and container type, such as 20-foot containers (TEU) or 40-foot high cube containers.

Why GRI Matters for Shippers

• Increases shipping costs – A GRI can raise freight rates by hundreds of dollars per container, affecting overall supply chain expenses.
• Market-driven fluctuations – Demand, carrier capacity, and fuel costs influence how frequently GRIs are imposed.
• Potential cost mitigation – Shippers can negotiate long-term contracts or book freight early to lock in lower rates before a GRI takes effect.

Example of a General Rate Increase (GRI)

A shipping carrier announces a $500 per TEU GRI on the Asia-to-North America trade lane, effective March 1. If a shipper previously paid $2,000 per TEU, their new freight rate would increase to $2,500 per TEU, unless they secured a contract at a fixed rate.

How to Prepare for GRI and Reduce Costs

• Monitor carrier announcements for upcoming GRIs on key trade routes.
• Negotiate fixed-rate contracts to shield against frequent rate hikes.
• Book shipments before the GRI takes effect to lock in lower freight rates.
• Diversify carrier options to leverage competition and minimize rate spikes.

Understanding General Rate Increases (GRI) is essential for freight forwarders, shippers, and supply chain managers to manage logistics costs effectively. Staying ahead of GRI announcements and planning strategically can help businesses control expenses, optimize shipping budgets, and maintain profitability in global trade.