General Rate Increase (GRI)

A general rate increase is when ocean carriers raise base freight rates across multiple trade lanes, often to respond to demand or cost changes.

Examples: Carriers announce a $500 per container GRI from Asia to the U.S. West Coast starting next month.

Advantages: Helps carriers manage profitability and adjust for seasonal demand.

Challenges: Creates uncertainty for shippers and can cause short-term cost spikes.

Real-world example: During the 2021 container shortage, carriers applied frequent GRIs to capitalize on strong demand.

Explain like I’m five: It’s like your bus driver charging everyone more for tickets because gas prices went up.

FAQ: Can shippers avoid GRIs? Sometimes, through long-term contracts or negotiated rate agreements.

Bottom line: GRIs give carriers flexibility to raise prices, but they complicate budgeting for shippers.