What is General Rate Increase?
A General Rate Increase (GRI) is an across-the-board increase in base freight rates announced by an ocean carrier for a trade lane, usually expressed as a fixed amount per container. Carriers use GRIs to lift market rates when demand, capacity or costs change, and they are often announced for a specific date, sometimes alongside peak season surcharges. In US trades, carriers and NVOCCs must publish tariff rates, and under 46 CFR 520.8 any change that increases cost to a shipper cannot take effect earlier than 30 calendar days after publication, while decreases may take effect on publication. Whether a GRI applies to cargo moving under a service contract depends on the contract's terms. NVOCCs can use NVOCC Negotiated Rate Arrangements, which are not subject to the same tariff-publication process.
Why it matters for forwarders
GRIs matter most to shippers on spot or tariff rates, and to forwarders whose own buy rates are tied to tariff or index-linked contracts. Announced GRIs do not always stick, since the actual market increase depends on how much of it carriers manage to enforce, so forwarders should validate against booking-level quotes rather than press releases. Check whether quotes are valid by sailing date, booking date or gate-in date, because a GRI may hit cargo that rolls to a later vessel. In US trades, a GRI applied with less than 30 days' tariff notice can be challenged with the FMC. Build GRI clauses into client quotations so that pass-through rules are clear.