May 12, 2025
Recently, a large shipping company issued a notice announcing that it will increase the combined freight rate (GRI) from Asia to the West Coast of South America, the East Coast of South America, Mexico, Central America and the Caribbean.
The combined freight rate increase policy applies to goods transported in 20-foot and 40-foot dry containers, including high cube equipment and 40-foot non-operating refrigerated containers. From May 15, the price increase policy will take effect for all destinations except Puerto Rico and the U.S. Virgin Islands; for Puerto Rico and the U.S. Virgin Islands, the price increase will take effect from June 5. Until further notice, the following price increase standards will continue to be effective: 20-foot dry containers will increase by $500 per box; 40-foot dry containers, 40-foot high containers and 40-foot non-operating refrigerated containers will increase by $1,000 per box.
The freight rate adjustment covers a wide range of Asian regions, including mainland China, Macau, Taiwan, Japan, South Korea, Thailand, Singapore, Vietnam, Cambodia, the Philippines, Indonesia, Myanmar, Malaysia, Laos and Brunei. The west coast of South America, Mexico, Central America and the Caribbean include Mexico, Ecuador, Colombia, Peru, Chile, El Salvador, Nicaragua, Costa Rica, Dominican Republic, Jamaica, Honduras, Guatemala, Panama, Venezuela, Puerto Rico and the U.S. Virgin Islands; the east coast of South America includes Argentina, Brazil, Uruguay and Paraguay.
The shipping company did not clearly state the specific reasons for the freight rate increase in the announcement, but the shipping market is usually affected by factors such as fluctuations in fuel prices, changes in port operating costs, and adjustments in global trade supply and demand. Shipping companies may adjust freight rates accordingly. For companies engaged in trade between Asia and the Americas, this freight rate increase will increase logistics costs. They need to pay close attention to the dynamics and make cost accounting and logistics planning in advance to cope with possible operational challenges.
