Ocean Carriers To No Longer Post GRIs For The European Market
A probe launched in 2013 by the European Commission (EC) has led to 15 major ocean carriers to agree to discontinue posting GRI increases every 30 days. Carriers were being investigated for breaking EU anti-trust laws by filing what were thought to be illegal GRI increases under the inquiry. In lieu of a typical GRI expressed as a value or percentage, carriers will be required to announce any requested increases in the form of an all inclusive rate under the new proposal.
The rate will require all 5 of the major pricing components to be clearly separated as follows:
- Base Ocean Freight(OF)
- Quarterly Bunker(QBAF)
- Carrier Security(CAS)/Port Facility Security(ISPS)
- Terminal Handling(THC)
- Peak Season Surcharge(PSS)
The agreement was created to avoid further investigation and possible litigation. Under the new structure, increases cannot be posted more than 31 days prior to the effective date of the increase. The new format will allow for ease of reference and eliminate some of the guess work associated with standard GRIs.
The carriers that will be complying with the configuration include: China Shipping, CMA GGM, COSCO, Evergreen, Hamburg SUD, Hanjin, Hapag Lloyd, Hyundai, Maersk, MSC, MOL, NYK, OOCL, United Arab, and ZIM.
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