Blogs

Back to all posts Post on May 03, 2022

GRI

GRI, also known as the General Rate Increase also known as GRI, is the change in prices for ocean freight through shipping companies. The purpose of this is to assist carriers in recovering from the effects of market volatility in the course of the season. In a relatively stable year, the GRI is typically applied one time. However, there have been instances in which the GRI was used several times during the year.

In theory, the GRI could use to apply any freight rate on the ocean. However, in recent years we've witnessed it affect the majority of imports and exports.

The final decision on how to implement the GRI, which routes it'll affect, and how much will be entirely in the hands of the shipping companies. By the Federal Maritime Commission regulations, the US shipping companies must declare rate increases within 30 days of their due to go into effect. Other countries have a different process, which could be as low as a week. So if you don't lock in your reservation before the day that the GRI starts and you don't know when it will start, you could end up paying the increased cost that could be twice as much.

© Copyright 2022 Seaways Group., All Rights Reserved.