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If you feel like ocean freight rates are already high enough, then you might be surprised to learn about General Rate Increases (GRIs). These are additional charges shipping lines slap on top of your base rate, often due to high demand.

But before you automatically pay up, there are situations where you can fight back. Let’s break down GRIs and when you can potentially avoid them.

What’s a GRI?

Think of a GRI as a price hike for shipping containers. Shipping lines raise their base rates across specific routes when demand is high. This can happen more often than you think, especially with recent fluctuations in the market.

How Do GRIs Work?

Shipping lines typically give you 30 days’ notice before a GRI goes into effect. During this time, they might adjust the increase, but they can’t raise it above the initial announcement.

The key thing to remember is that GRIs are based on the Bill of Lading (BL) date, which is when your cargo actually gets loaded onto the ship. This can be tricky because even if you book your shipment before the GRI date, if it doesn’t get loaded until after, you might still be charged the extra fee. In the industry, this is called “vatos” (valid as of time of shipping).

So, How Do You Avoid Unfair GRI Charges?

Here are some tips to save money on GRIs:

Freight Forwarders: If you use a freight forwarder, make sure they stay updated on upcoming GRIs so they can warn you and adjust quotes accordingly.
Booking with Shipping Lines: When booking directly with a shipping line, always ask about potential upcoming GRIs that could affect your shipment.
Compare Quotes: Get quotes from multiple shipping lines and compare them alongside any upcoming GRIs. This will help you choose the most cost-effective option.
Manage Expectations: Since GRIs are often linked to high demand, expect longer transit times and potential delays. Be sure to communicate this to the person receiving your cargo (consignee).

The Key to Avoiding GRIs:

Here’s the golden rule: If your cargo is already “shipped on board” (SOB) and the Bill of Lading (BL) is issued before the GRI effective date, you can potentially challenge the charge if the carrier tries to invoice you for it later. This can be a point of negotiation for excess charges.

Knowledge is power when it comes to ocean freight. Now you’re equipped to handle GRIs and potentially save money on your next shipment. Remember, staying informed about upcoming GRIs, comparing quotes, and understanding your rights as a shipper are all valuable tools. So, breathe easy, stay informed, and happy shipping!

Recoupex is a hub of transport lawyers – experts in cargo claims. We assess your case quickly. We have successfully recovered claims from Maersk, Sealand, Hapag-Lloyd, Mediterranean Shipping Company – MSC, CMA CGM, and other carriers.

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