More GRIs forecast on Asia-Europe

Container lines are expected to announce a string of General Rate Increases to be introduced early next month to counter losses on the Asia-Europe trades, but analysts expect the effects of any increases to be minimal and short-lived.

OOCL yesterday said it would introduce a new Rate Restoration Programme on the Asia Europe trade to enable it to provide “quality and sustainable services” with effect from 7 December. The new US$850 per TEU charge covers westbound traffic from Far East (excluding Japan) to North Europe, the Mediterranean and Black Sea.

Other lines are forecast to follow OOCL’s lead in the coming days and weeks. Rahul Kapoor, Director for Equity Research at Drewry told Lloyd’s Loading List.com: “We haven’t seen any other lines come out as yet but we do expect others to follow suit. But we are entering a seasonal lull for the sector so we are not sure if any of these GRIs will succeed in staying put for an extended period.”

He said that GRIs implemented at the start of November had found some traction initially before being rapidly eroded last week . “GRIs have become a tool to arrest rapid rate declines and are now generally given away in the weeks that follow,” he added.