May 14, 2024

Navigating GRI and Preparing for Peak Season Together

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As we gear up for the 2024 peak season, significant challenges lie ahead with General Rate Increases (GRIs) and a forecasted surge in import volumes. The latest insights from the National Retail Federation and Hackett Associates indicate that the strong wave of consumer spending will continue pushing import volumes at our nation’s top ports to exceed 2 million TEUs each month through October.

Key Insights and Our Advocacy for You:

1. Navigating GRIs and Space Limitations

The shipping industry landscape has shifted, with carriers prioritizing contracts with Beneficial Cargo Owners (BCOs), thus reducing the space available for Non-Vessel Operating Common Carriers (NVOCCs). This change is primarily driven by increased demand on the East Coast. We understand these shifts could impact your operations. As your Supply Chain partner, we are actively engaging with carriers to negotiate the best possible terms and secure adequate space for your needs.

2. Strategic Adjustments in Response to Market Changes

We are strategically adjusting our service offerings in response to the reduction in fixed-rate space and an increase in the requirement for FAK space on vessels. This approach ensures we can continue providing reliable and efficient service despite these industry-wide changes.

3. Advance Volume Projections

We highly value any input on the expected weekly volume for the peak season. While these projections do not need to be exact and can change as required, the more precise they are, the better we can plan. Receiving these projections early allows us to work proactively with carriers and set space allocations to support your volume needs.

4. Advance Bookings

To ensure optimal service, we recommend that your supplier makes official bookings with our team at least 3-4 weeks in advance. This timing is critical during the peak season and will allow our team to match up the space we’ve allocated based on the projections we’ve received. Last-minute bookings, if necessary, will likely incur higher rates and be subject to space availability, often on less optimal sailings.

5. Proactive and Transparent Communication

At The Block Logistics, we believe in the power of proactive planning and transparent communication. We are dedicated to keeping you fully informed and engaged as we navigate these changes together. Our team is refining internal processes to enhance responsiveness and ensure we are as prepared as possible to face these challenges.

Your Role in Successful Planning

We encourage you to collaborate closely with us during these critical times. Providing your projections and booking early enables us to serve you better. Early engagement is crucial to securing the necessary space and managing rates effectively, ensuring no disruptions to your service.

Closing Thoughts

Despite the challenges ahead, our commitment to client advocacy, transparency, and flexibility remains unwavering. We are here to support you, guide you, and ensure that your logistics needs are met with the highest level of expertise and care. Let’s approach this peak season as service providers and clients and as strategic partners dedicated to mutual success.

Thank you for your continued trust in The Block Logistics. We look forward to navigating these challenges together and becoming stronger on the other side.