The carriers on the trans-Pacific eastbound trade lane have announced a $400/container General Rate Increase (GRI) effective June 1, 2020. This increase had originally been planned at $500. Simultaneously, carriers have filed a second increase of $1000/container effective June 14, 2020.

It is important to understand that filed increases don’t always get implemented. Carriers are required by the Federal Maritime Commission (FMC)  to file increases on 30-day notice so it is quite typical for them to maintain increases on file virtually at all times. The actual implementation of these increases both in terms of quantum and timing is dictated by the market.

Space on this trade-lane has become very tight over the past few weeks as a consequence of increased volume combined with many cancelled or blank sailings implemented in response to the initial drop in consumer demand during the coronavirus pandemic. Several carriers have introduced extra loaders to clear the cargo backload, but no official announcement has been made with regard to the reinstatement of blank sailings or resumption of normal service.

Canceled sailings are at their peak, but carriers could announce more blank sailings to push the peak out further based on macroeconomic factors, according to Supply Chain Dive. As stay-at-home orders are slowly lifted, the industry may see a shift from demand-driven decreases to an uptick in consumer confidence. This is by no means a guarantee and Worldwide Logistics Group will continue to monitor this situation.

As always, we strive to mitigate increases to the greatest extent possible and maintain the most competitive rates and services at all times. Please contact us for more informations or questions.