Hapag-Lloyd postpones container rate increase ahead of Chinese holiday

Houston — German container carrier Hapag-Lloyd will delay its east Asia to North America General Rate Increase, or GRI, to Nov. 1 from Oct. 1, the company said in a notice to clients on Sept. 30.

The proposed rate increases would be $960/twenty-foot equivalent unit and $1200/forty-foot equivalent unit on the trans-Pacific lane.

Carriers announce GRIs up to a month before they are due to come into force, over which time they also have the option to lower the proposed GRI level, or decide against implementing an increase at all. There is frequently a period of negotiation between carriers and freight forwarders or shippers ahead of the implementation date, where the two parties try and reach an agreeable level, which is sometimes shy of the initial proposed rate hike.

Although demand for container capacity is typically strongest prior to China's Oct. 1-7 Golden Week holiday, a north Asia-based carrier said the impact of the holiday break could be less than expected this year as shippers were motivated to continue meeting strong demand.

"We recognize that rates are at the higher end already, and with Golden Week coming up we would traditionally see a slowdown around now. But we are also seeing strength in orders out to 30 days, and a lot of people in China have been encouraged to stay on and keep working during this period," the carrier said.

Eastbound trans-Pacific rates have climbed week over week and were last assessed by S&P Global Platts at $3,800/FEU. The cost to ship from north Asia to West Coast North America has almost tripled from $1,350/FEU at the start of the year.