General Rate Increase
Logistics Term
General Rate Increase Definition
A general rate increase, abbreviated as GRI, alters sea freight rates across a specific or all trade route during a set time frame. They are stimulated by the supply and demand chain within freight shipping. They are generally brought about by bigger carriers, especially during peak seasons. The U.S. regulation requires the carriers to announce these charges at least 30 days in advance. They, therefore, tend to announce the general rate increase on the 1st of a particular month and implement the changes on the 1st of the following month. However, every month differs from the other; similarly, different carriers and trade lanes have different approaches.
Principles of Green Freight
General increase rates are not rigid; carriers are welcome to lower the rates at any time. In addition, capacity crunch and lack of sufficient drivers, hours, and trucks to move all the freight that requires shipping have reduced GRI alterations. GRI is needed to recover the shipping costs after shippers competitively lower them to attract clients. To avoid GRI, turn in your cargo at least the day before their announcement, as the shipping charge is locked to the day you hand over your cargo to the carrier. It's essential to hint at when the GRI will likely be implemented, as they can change the charges by as much as double the initial charge. You can do so by coordinating with your supplier to avoid delayed charges, comparing different carrier shipping rates, or setting your cargo collection before its effect.
