Glossary

General Rate Increase (GRI)

Definition

A General Rate Increase (GRI) is an adjustment of freight rates by carriers, usually in the shipping industry, to account for fluctuations in operational costs such as fuel prices, labor costs, or currency exchange rates. GRIs are typically announced by carriers in advance and implemented on a specific date. In road freight logistics, a GRI may impact the cost of transporting goods and the overall supply chain.

— sennder Team

FAQ

Carriers implement GRIs to account for fluctuations in operational costs such as fuel prices, labor costs, or currency exchange rates. By adjusting their freight rates, carriers can maintain profitability and ensure the sustainability of their operations.
A GRI may lead to an increase in transportation costs for shippers, as they will need to pay higher freight rates to carriers. Shippers must be aware of any upcoming GRIs and plan their logistics and budget accordingly to minimize the impact on their supply chain and overall business.
In some cases, shippers may be able to negotiate with carriers to minimize the impact of a GRI. This can be done through long-term contracts or volume-based discounts. However, the ability to negotiate a GRI may depend on factors such as the carrier's pricing strategy, market conditions, and the shipper's bargaining power.
Example or usage in road freight logistics

A road freight carrier announces a General Rate Increase (GRI) of 5% to be implemented in two weeks, citing increased fuel costs and labor expenses. Shippers using this carrier's services will need to account for the increased freight rates in their transportation costs, potentially leading to adjustments in their logistics planning and budgeting.

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