- Container lines are inundating Indian shippers with notices of GRI and PSS.
- This hike supplements two prior announcements, with increments of US$500 per container.
- MSC justifies these hikes by emphasizing the necessity to uphold service.
Impact of Red Sea Crisis on Indian Shippers
Container lines are inundating Indian shippers with notices of General Rate Increases (GRI) and Peak Season Surcharges (PSS) as they seek to capitalize on the tumultuous situation in the Red Sea. MSC, in particular, has announced its third set of GRI and PSS plans for January, amounting to a staggering US$5,000 per container increase on the India-US trade route, reports Container News.
MSC’s Pricing Strategies
MSC, based in Geneva, has outlined its intention to impose a GRI of US$1,000 per container on shipments from India to various destinations in the US, effective from 29 January. This hike supplements two prior announcements, with increments of US$500 per container each on 10 January and 22 January. Additionally, a fresh PSS of US$1,600 per container is set to take effect on the same trade lane from 29 January, adding to previously declared surcharges of US$500 and US$800 per container on 10 January and 22 January respectively.
Rationale behind Increases
MSC justifies these hikes by emphasizing the necessity to uphold service reliability and efficiency for their customers. Other carriers servicing Indian trades have followed suit, introducing multiple rounds of considerable rate increases, including emergency surcharges, for January. Furthermore, February’s escalation plans are anticipated to be disclosed shortly.
Continuation of Challenges and Disruption
The ongoing Red Sea crisis shows no signs of abating, making it improbable for major carriers to revert to the Suez Canal route shortly. This situation implies the likelihood of further rate hikes and cargo delays as disruptions deepen across various trade routes.
Carriers’ Response and Operational Changes
Reflecting the heightened security risks, Maersk announced on 5 January that all its vessels scheduled to traverse the Red Sea/Gulf of Aden will be redirected south around the Cape of Good Hope for an indefinite period. This diversion aims to offer customers greater consistency and predictability in services, despite the inevitable delays associated with rerouting.
Did you subscribe to our daily newsletter?
It’s Free! Click here to Subscribe!
Source: Container news
