News / Carriers miss March GRI targets as Middle East disruption proves milder than feared

ID 107476218 © Giovanni Gagliardi | Dreamstime.com

Shipping lines fell short of their plans for a GRI this month, as the impact of the Middle East crisis on port congestion and container equipment availability has been less severe than anticipated.

The Shanghai Containerised Freight Index showed that on Friday, the Shanghai-North Europe rate gained 11% from the previous week, to $1,618 per teu. In feu terms, rates were up 16%, to $2,757. On the transpacific, Shanghai-US West Coast rates increased by 16%, to $2,249 per feu, while the Shanghai-US East Coast rate went up by 15%, to $3,111 per feu. The Shanghai-Mediterranean rate gained 13%, $2,666 per teu.

Linerlytica’s report today noted that liner operators did not succeed in executing their GRIs, as rates were well below their target of $4,000 per feu.

The consultancy noted that while shipping lines will re-attempt a GRI on 1 April, the market is not in their favour.

Linerlytica said: “Sentiment is starting to cool as the expected disruptions from port congestion and equipment shortages have turned out to be less serious than initially expected. Demand for the Mediterranean is also starting to ease, with attention shifting away from using east Mediterranean hubs to the more direct Red Sea gateways for cargo bound for the upper Gulf region.”

Transpacific GRIs, originally slated for 15 March, were abandoned due to lacklustre demand, with ships reportedly less than full on both US coasts. SeaLead has reportedly withdrawn its last ship on the Asia-US West Coast (AWC) service after this month’s sailing, joining Emirates Shipping Line which is also retreating after a sailing on Friday.

The Loadstar was not able to reach SeaLead for confirmation, but the AWC service is no longer featured on the company’s website.

Linerlytica said: “Attention now shifts to the contract negotiations, with the current Middle East turmoil and fuel price surge providing much needed support for carriers seeking to lock in higher contract rates compared to what they are receiving currently.”

Check out this week’s News in Brief podcast, featuring Xeneta’s Peter Sand and Marco Forgione, director general of the UK’s Chartered Institute of Export & International Trade.