The significant increases in general rate increases (GRI) for shipping have been a major issue since April. Container costs have become a significant concern among the current shipping challenges. Prices have increased by a few hundred to a thousand dollars, with another surge anticipated in July. Prices have increased by a few hundred to a thousand dollars, with another big surge expected in July. There is worry about whether these increases will continue throughout the year or level off after the summer, affecting customers and business operations.


The situation differs between the West and East Coast. Some carriers on the West Coast offer special spot rates that might temporarily lower prices. However, the East Coast is experiencing continued capacity reductions due to blank sailings, leading to high space pressure and ongoing GRI increases. Customers are reacting differently: some are holding off on orders, hoping for a price drop later in the year, while others are pushing shipments to avoid potential future increases or due to restocking needs after a slow previous year.


Shipping logistics are complex, especially with the various steps and dates that impact rate validity. Key dates include the validity date, container yard cut-off date, and port opening date, which determine when new rates apply. It is essential to coordinate with factories to ensure containers are returned to terminals before new rate increases take effect. Understanding these logistics is crucial to avoid unexpected rate increases for customers.


Here at Radius International we are committed to keeping you in the know, that being said, we are continuing to monitor this situation and will provide you with updates. Please reach out to us with any questions or concerns!