Cargo Volume Uptake Drags On Gri

Liner trade carriers attempted to bolster their financial performance in the first quarter of 2025 by implementing General Rate Increases GRIs, effective from April 1.

However, these efforts have been met with mixed results and significant scepticism regarding their sustainability.

According to Hong Kong market intelligence firm for the container shipping industry, carriers faced challenges in maintaining these rate hikes due to weak demand and volatile market conditions.

Data gathered by Linerlytica which tracks over 7 000 vessels across 1 500 liner services globally reported that while carriers introduced GRIs, many had already deferred subsequent rate increases due to insufficient cargo volumes.

New rates include 2 700 for a 20-foot container from the Far East to the USA, but uptake has not been what was anticipated.

As a result, a new GRI planned for May 1 has been postponed by two weeks.

Analysts like Frode Mrkedal of Clarksons Securities suggest that the recent spot rate increases may only offer a temporary reprieve.

Mrkedal noted that even if contract rates rose above recent spot levels, they were expected to remain significantly lower than the previous year, leading to a substantial drop in liner earnings in the second half of 2025.

The container shipping industry continues to navigate a delicate balance, with overcapacity and tepid demand exerting downward pressure on rates.

Linerlyticas data indicates that the share of contract volumes has shrunk to less than 30, with carriers extending preferential rates to non-vessel-operating common carriers NVOCCs to secure business.

While liner operators aimed to achieve gains in Q1 2025 through GRIs, the effectiveness of these increases remains uncertain, with market dynamics and weak demand posing significant challenges.