General Rate Increases

[HUFDesign]

I am a brand new start up and I am having my product manufactured in China and then I am shipping it to the UK. My first shipment is on the water even as we speak. It was picked up mid December from the factory and then when it reached the port it was "pulled" for inspection, presumably because I am a new importer. Due to the delay caused by my shipment being pulled, I then became subject to a General Rate Increase (which I choose to call a Christmas Tax). I was not forewarned about the likelihood that I may incur this charge and I am just having to bite the bullet which has detrimentally affected my profit margin and forecasting. I get the impression that this Christmas Tax is a regular occurrence and my question is are there any other predictable General Rate Increases that I need to be aware of in the future for my forecasting and price setting?

Any advice would be appreciated.

Thanks.

 

[MOIC]

A GRI (General Rate Increase) is a charge imposed by the shipping companies.

These GRI's happen from time to time and I believe the latest is due to an emissions tax (I may be wrong) that the companies have to pay for the emission levels caused by their vessels on European seas.

This should have been mentioned in the quotation from your forwarder and has nothing to do with your shipment being "pulled" for inspection.

It is fairly standard that your first import will be checked.

You may also incur storage charges should the inspection cause any delays to clearing your goods.

If you need any further advice, feel free to send me a PM.

Good luck with your China purchases

 

[Denzel Fan]

GRI (General Rate Increase) is a shipping term used to describe freight rates. Basic rates + BAF + CAF + GRI + ... form the whole rates.

The rates are determined by the cut off date at the loading port. So it has nothing to do after that. You can learn more from here.

Let us know if we can assist you in any way.