Last Friday we provided an alert regarding the September 15 scheduled GRI in the Trans-Pacific trade. With more clarity we can provide additional information today.
Based on an administrative directive by the Chinese Government, COSCO announced a postponement of their scheduled GRI. This postponement has been extended beyond China origin to all Far East origins.
We now know that Evergreen has followed suit with an identical postponement. OOCL has postponed the GRI for China origin only. All other carriers have reduced their GRI from the published $500/40’ container to a range of $200-$300.
In large part, the differential in rates among carriers is made moot by the increased tendency of the carriers to impose surcharges in return for space protection. These surcharges range from $750-$1000 per container. Cargo volumes continue to be extremely strong with space still very tight. It is expected that this tendency will continue at least through the month of October. While COSCO has suspended their blank sailing program for the period leading up to the Chinese national holiday which is set for October 1-7, other carriers are maintaining their blank sailing strategy. This serves to restrict available space in the market and thus maintain upward pressure on rates.
Worldwide Logistics Group will continuously monitor this situation and provide regular updates should the market situation change. Please contact your representative for more information.