General Rate Increases (GRI) Start to Take Hold for Carriers as Spot Rates Climb Above Long-Term Prices on Key Far East Corridors
GRIs have finally started to have an impact on the ocean freight market, with spot rates climbing above long-term prices on key Far East corridors.
Xeneta, a leading provider of benchmarking and market intelligence for the global container shipping industry, said that the market average spot rate per FEU from the Far East to the US West Coast increased by $470 from July 1 to August 1. This is the largest climb across the three key corridors and is a clear sign that GRIs are starting to have an effect.
However, the increases are still below the $1,000 per FEU that carriers were hoping for. This is likely due to the fact that the market is still oversupplied, with too many ships chasing too few containers.
It is still too early to say if the GRIs will be enough to sustain the current upward trend in spot rates. However, with peak season approaching, there is a good chance that rates will continue to rise in the coming months.
Shippers who have been waiting to sign new long-term contracts may want to consider doing so sooner rather than later. The market is showing signs of improvement, and it is possible that rates will continue to rise in the coming months.
