Good afternoon All
The planned General Rate Increase (GRI) effective July 1st (today) has hit the market and has resulted in rates almost tripling based on market spot rates available in June.
We advised our clients to ship as much product as possible in the month of June which was, it turns out good advice, as the increase is actually USD 895/TEU (USD 895/20 foot container), almost 90% of the published increase. We've already said that we believe the increase will lessen as we run through July but you really need to keep a close eye on this.
The key thing now is not to panic, but first of all, to ascertain:-
1) What rates were you being charged in June (prior to increase)
2) Has your forwarder advised you of the increase and how much?
3) What is your plan to manage / control inbound freight costs for the remainder of 2013 - we're now entering traditional peak season (say Aug through to Chinese New Year) and lines will continue to keep the pressure up on rates to increase their revenues/margins.
If you need any help, you know where to come.
Kind Regards
Andy Cliff
http://www.straightforwardconsultancy.co.uk/
http://www.lloydsloadinglist.com/freight-directory/news/asia-europe-rates-double/20018055732.htm?source=ezine&utm_source=Lloyd%27s+Loading+List+Daily+News+Bulletin&utm_campaign=64a46cc935-LLL_1_July7_1_2013&utm_medium=email&utm_term=0_1a5c244239-64a46cc935-256747097
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