No one should be surprised that these Ocean Shipping General Rate Increases are coming at a rate of one and sometimes two per month as we saw in September. With the staggering shipping volumes from Asia to North America continuing with no real end in sight this is the result of the Supply vs. Demand equation. Effective October 1, 2021, another General Rate Increase (GRI) has been filed for all cargo imported from Asia ports of loading, to U.S.A., Canada, and Mexico ports and ramps of discharge.
The proposed increases are as follows:
USD 1,800 / 20′
USD 2,000 / 40′
USD 2,250 / 40′ HQ
USD 2,250 / 40′ Reefer
USD 2,532 / 45′
USD 3,200 / 53′
Importers continue to struggle with trying to control their supply chain and logistics budgets, and this is no easy task. In addition, many companies will need to decide if having these products actually makes sense as these shipping costs skyrocket. The fact is that as profits get squeezed, businesses either cut their losses and decide it’s not worth selling specific products, or pass these added costs onto the ultimate consumer. You don’t have to be a brain surgeon to understand that rising consumer costs are headed are way and with a vengeance.
Importers should also be aware of the following key dates and circumstances for potential additional spikes in shipping volumes that will only exacerbate the Supply vs. Demand Equation. Mark these dates down on your calendar so you are well informed ahead of management questioning why goods continue to be late and more costly.
October 1-7, 2021: Golden Week – National Holiday in China.
February 1-7, 2022: Chinese New Year – Factories closed 1 week before and up to 2 weeks after
February 4-20, 2022: Beijing Winter Olympics – Factories will close, so the air pollution will not be so evident.
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Looking to gain control over rising shipping costs? Reach out to our logistics experts today to learn more.
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