June 1st GRI: Secure Your Space Now

GRI June 1st

As June approaches, the logistics industry is bracing for another General Rate Increase (GRI) set to take effect on June 1st. In addition to this upcoming rate hike, the current landscape is characterized by equipment shortages, blank sailings, and potential rail strikes in Canada, all of which have made space availability, rather than rates, the primary concern for shippers.

  • Equipment Shortage: The ongoing global shortage of shipping equipment has severely impacted container availability.
  • Blank Sailings: Carriers continue to announce blank sailings, reducing overall shipping capacity.
  • Potential CP/CN Rail Strikes in Canada: Labor disputes threaten to disrupt rail transport, further complicating logistics.

These issues have led to extremely tight space availability, especially for shipments bound for the US West Coast. Space on sailings through the end of May is almost fully booked, making it critical for clients to plan. Upcoming Rate Increases While securing space is the immediate priority, it is also essential to prepare for the rate changes that will accompany the June 1st GRI:

  • US West Coast (USWC): Rates are expected to rise over 6K per 40′ High Cube (HQ) container.
  • US East Coast (USEC): Rates might increase over 7K per 40′ HQ container.

In this marketplace, uncertainty is the norm. We are focused on selling space for ocean shipments even more than rates, as the rate is useless without the space that is behind it.

Immediate Solutions

To address the pressing need for space, carriers have introduced the “Diamond Service,” which prioritizes space capacity over rates. This premium service allows clients to secure much-needed space on vessels amidst the current constraints.

  • Submit Space Forecasts Early: Clients should submit their space forecasts at least three weeks before the Estimated Time of Departure (ETD) to secure their shipping slots.
  • Utilize the Diamond Service: From the second half of May, the Diamond Service offers prioritized space at a premium price, ensuring that shipments can be loaded and transported without further delay.

At GLC Inc., we are committed to helping our clients navigate these complex challenges with minimal disruption. Our extensive experience and strategic partnerships enable us to provide tailored solutions that address your specific needs.

For space confirmations or any pending shipments in the forecast please reach out to your GLC representative or [email protected]. Together, we can ensure your supply chain remains resilient in the face of ongoing challenges.