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What is a General Rate Increase (GRI)?
A General Rate Increase, also known as GRI, is an annual percentage increase in shipping rates applied to the base freight rates.
General Rate Increases reflect rising costs in transportation for a supply chain – such as, fuel, insurance, wages, raw materials, and other operating tariffs. These increases can occur on any trade lane from changes in supply and demand.
At times, ocean carriers reduce their rates to a minimum to be more competitive until prices reach their lowest point. To recover these costs over time, a GRI may come into effect.
When the market is not volatile; the GRI will be applied semi-annually or annually. However, supply and demand for ocean freight changes rapidly. In the United States, carriers must announce changes to shippers at least 30 days in advance.
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