International trade has brought new opportunity for global merchants. And while prices tend to be favorable for overseas business dealings, the logistics of transporting the product to the customer is often overlooked. This type of oversight can quickly turn a carefully designed product and strategy into a logistics disaster. Your team will be left scrambling to secure rates that will not devastate your bottom line. Fluctuations in fuel, shifts of demand in certain lanes, and changes to volume all play a part in altering shipping rates from day-to-day. There are many factors which play into cost, but ocean freight shippers have another variable to consider: the Ocean Freight General Rate Increase (GRI).

Great supply chains are centered around one key piece of data, the cost of transportation. Knowing your costs upfront will maximize your bottom line, understanding transportation fees will allow you to price your product more effectively. While professional shipping companies play an integral role in this type of calculation of cost, understanding the Ocean Freight GRI will help you to better understand rate changes, and anticipate changes on an annual basis.

What Is The General Rate Increase?

A GRI (General Rate Increase) is the amount by which ocean carriers increase their base rates across specific lanes, generally as a result of increased demand.
In a non-volatile market, general rate increases take place on an annual or semi-annual basis. However, supply and demand for ocean shipping can fluctuate rapidly. Marked as one of the biggest challenges in global shipping, restructuring rates to include the Ocean Freight General Rate Increase falls on the shoulders of global logistic shipping partners, such as RTM Lines, to ensure the cost of shipment is reflected accurately in every quote.

Before third party logistics companies can understand the reality of rates in the coming year, the steamship lines perform an analysis of their own. The steamship lines crunch numbers and assess the state of the market. With data and projections, they arrive at an increase. This increase is generally implemented near the start of the new year.

From a cargo owner’s perspective, GRIs can be tricky. When they come into effect, they affect all cargo not yet loaded onto a ship, irrespective of when the shipment was booked. For example, if a shipment is booked on the 20th at a specific price but loaded on the 2nd, the GRI would still be applied to that specific shipment. In the industry, this is called “vatos” (valid as of time of shipping). Most forwarders will take this into account when quoting or warn their customer that a GRI may be forthcoming.

The Ocean General Rate Increase is an adjustment of prices based on an analysis of costs. These new, often higher costs, need to be recouped in order to maintain viability in the market. In order to maintain quality levels and elite service, steamship lines must increase their rates. This recouping of costs is vital to great service. It ensures necessary maintenance and upgrades are performed.

How Is The GRI Calculated?

The GRI comes after an intense analysis of shifts in costs over the previous year. The steamship lines know that every trade lane tariff has its own scope and with that, its own set of cost-impact factors to take into account when determining a responsible GRI rate level. Every measure of a carrier’s cost structure is reviewed and capital and expense projections are assembled for the coming year.

This means the GRI is both a history lesson and a prediction of the future. It predicts the future of labor, consumer behavior, and government fees and taxes.

RTM Lines Method

RTM Lines is dedicated to issuing cost recovery actions at a responsible and achievable rate.

RTM Lines centers our calculations for the GRI on the needs of our customers. We do this by examining new accessorial charges like:

· Ship Maintenance Fees

· Terminal Handling Charges

· Federal Maritime Updates

· Hazardous Materials Fees

· Inland Arbitraries

· Door to Door Cost Accrual

How Does The GRI Impact Shippers?

Given these points, we can start looking at how the GRI affects shippers in all industries. The most important point to remember is that rates increase through the steamship lines. This means service providers’ rates must increase in order to offset the changes. This usually comes in a simple percentage pass-through increase to the shippers.

What Can I Do To Offset The Ocean Freight General Rate Increase?

There are a few things you can do now to put you in the best possible position.

1. Know your current shipping costs and margin. To achieve the most efficient and profitable supply chain, shippers must know their transportation costs. With events like the Ocean Freight General Rate Increase, we know these numbers are not static. Hold frequent assessments of costs throughout the year. Failing to anticipate, assess, and account for increases in costs attributed to the GRI can damage your supply chain.

2. Evaluate your business and shipping strategy. Know exactly what you are producing and run scenarios for price increases to see how they will affect your margin. Evaluate the burn rate of additional expenditures, and determine viability towards the bottom line. A more accurate classification of your freight may mitigate excessive spend.

3. Maintain an open dialog with your service provider. All good logistic service providers will be willing to discuss the General Rate Increase with you. Ask them for tips on how you can minimize the effects of the increase, and plan for future shipments in advance.

Understanding the Ocean Freight General Rate Increase is a great way to look back on historical shipping costs, and predicate their future decisions on anticipated changes, ensuring a successful and strategic future. You will be able to see the trends of the last year, and use that insights to determine where your supply chain needs to be to maintain growth.

RTM Lines strives to be transparent about the potential changes in our rates. We work with our customers to help them understand the GRI and the potential effects on their costs prior to solidifying a shipment plan. We pride ourselves on working collaboratively and want to help all customers move forward in a profitable and efficient way.

Recovering Oil Prices Increase Demand for Reliable Oversea Transportation:

Trans Ocean Transportation Company Uses Past Success to Meet New Demand

 

NORWALK, CT–Global crude oil prices are predicted to recover and the demand for oil and oil-based products increase in 2018. RTM Lines’ team of seasoned ocean transportation professionals believe proven experience in transporting oilfield equipment is critically important to their clients in the oil and gas industry who are working to meet this demand.

“As the price of U.S. oil is projected to average $57 a barrel next year and global oil consumption continues to climb, we anticipate the need for logistical support to increase in proportion,†said Richard Tiebel, the Chief Ocean Transportation Officer for the logistics company. “Having an in-depth understanding of the oil and gas industry is essential to successfully meeting shipping and logistical challenges.â€

In its monthly forecast, The Energy Information Administration said it expects Canada, Brazil, Norway, the United Kingdom and Kazakhstan crude production to rise by an average of 700,000 barrels a day in 2018. While OPEC may boost output by 200,000 barrels a day.

“Successfully transporting what is essentially an entire oilfield location is complex and can require weeks of detailed planning,†Tiebel said. “We’ve worked on many of these projects, including an especially challenging one in August that included transporting equipment from one large oil field to two separate Saudi Arabian ports.â€

When shipments require offloading at multiple ports, the loading and stowage process must be mapped out precisely. It is imperative that loading is accomplished in a specifically ordered sequence, to ensure the cargo is unloaded efficiently. Any deviation in the loading strategy could make unloading necessary equipment at the first port impossible, potentially causing delays. This type of impediment can equate into catastrophic economic losses for both the operator and drilling companies.

“Before production can begin in oil and gas, the equipment has to be present and accounted for. Our success with large oil and gas companies is a prime example of what we do best,†Tiebel said. “We comb through every piece of documentation provided, analyzing, reviewing, confirming that all dimensions are verified to ensure every detail is in order.â€

Due to insurmountable shortcomings over the last few years, many service contractors in the oil and gas industry have suffered irreparable damage, resulting in the losses for the experienced companies. While the public spotlight is on the rising cost of oil and the welcomed increase in job opportunities, major operators are focusing on how to navigate the logistics, safely and efficiently.

RTM Lines has maintained a perfect safety record and has over 30 years of experience handling complex shipments and finding solutions to complicated logistical challenges.

For more information about RTM Lines, visit https://bellavistudio.com

 

RO-RO  SHIPMENT BASICS

Do you have a difficult international vehicle or ro-ro shipment on the horizon?  RTM LINES’ knowledgeable and courteous professionals are experts at shipping personal and commercial vehicles anywhere by ocean.  We will take care of your automotive and vehicle ro-ro shipments across international waters from start to finish, expertly guiding you through the process for a successful, safe delivery.

We are often asked, ‘what is the best way to ship this car, tractor or crane overseas?’ Honestly, when shipping a vehicle as ocean cargo, there is no ‘one size fits all’ answer.  Sometimes the best answer is to ship it as Ro-Ro cargo, other times it is better to ship it on a flat rack or maybe even in a container. Each shipment is unique.

And, while we have identified…and answered…some of the most-frequently-asked questions below, we customize creative solutions for each client’s specific vehicle ocean transport challenges.

At RTM, we solve problems. Contact us now and let us make sure that no matter the mode of shipment or where its final destination may be, your trans-ocean vehicle shipment has smooth sailing!

To discuss your shipping needs or for a quote, either call RTM at (203) 750-8890 or email us at pricing@bellavistudio.com.

Q:        Do you ship to…..?

A:         Virtually every time, the answer is yes.

Q:        Can you ship my…..?

A:         Virtually every time, the answer is yes; items we ship, include but are not limited to:

• Automobiles of any type
• Recreational vehicles and motor homes
• Sports utility and all-terrain vehicles
• Ambulances, Trucks, Buses
• Tanks and military vehicles
• Excavators, cranes and construction vehicles
• Trenchers, boring machines and mining vehicles
• Tractors, tillers and agricultural vehicles
• Boats, yachts and other watercraft
• Helicopters, airplanes

Q:        How will you ship my vehicle overseas?

A:         It depends on the vehicle.  Most vehicles that are in working condition including having good breaks may be driven on to and off the ship. This is called roll-on, roll-off or Ro-Ro cargo. Vehicles like trailers can be shipped as Ro-Ro cargo if it can be towed or placed on flat racks.  Another option includes containerized shipping for classic/vintage cars, boats, and motorcycles.

Q:         What kind of paperwork is needed to ship my vehicle to another country?

A:          Examples of the most common required are:  title of ownership, letter from the lien holder if applicable, certificate of origin and bill of sale for a new vehicle

Q:        What can be in the vehicle during transport?

A:         For a Ro-Ro shipment, only equipment that was part of the vehicle when delivered from the manufacturers is permitted.  These items may include a spare tire in the trunk, manual, vehicle tool kit.  The following items should be removed from the vehicle:  antennas that cannot be retracted, pop out radios, car phones, tags for tolls, garage door openers, consumer added exterior racks (e.g., bike or luggage racks), and license plates.  Vehicles may not be used storage lockers to transport tools or personal effects.  No personal effects are allowed to remain in the vehicle during transport.

Q:        Are there any special considerations for motor homes?

A:         Propane tanks containing propane cannot be accepted. Tanks that are fixed on the unit itself must be certified as empty. Removable tanks must be removed prior to delivery to the port. Motor homes that need electrical power during the ocean voyage cannot be accepted.  Prior to loading on the ship, motor home will be inspected and should not contain items that could be construed as dangerous or a security liability. Prohibited items include, but not limited to crates and boxes, flammable liquids, motorcycles/scooters, perishable goods, corrosive/explosive liquids or materials.

Q:        Can the vehicle have fuel in it?

A:         Only Ro-Ro vehicles may have fuel in them. Ro-Ro vehicles should be delivered with one-quarter (1/4) tank of gas – just enough to load and unload it, and drive to a gas station at destination.  Vehicles shipped in a container may not have fuel in the gas tank.

Q:        What about the keys?

A:         Keys are either left in the vehicle or handed over to the terminal operator.  Keys are transported with the vehicle, sometimes in the glove compartment.  RTM recommends that the shipper keep a copy of the keys as backup.

Still have questions?

Give RTM a call at 203 750-8890 or email info@rtmlines.com.

RTM Lines pledges to provide informed proactive and resourceful guidance to our customers during possible disruptions due to new container shipping alliances effective April 1, 2017.

To our valued customer, beginning April 1, 2017, the worldwide container line industry will be reconfiguring itself into three new alliances: The Ocean Alliance, The Alliance, and 2M Alliance. This means that the carriers involved will be sharing space and combining routings, and while the B/L may be issued by one carrier, the cargo specified may load on another vessel within the alliance.

How might this affect shippers?

Over the next several weeks, during this reconfiguration, shippers may experience minor inconveniences as carriers revise schedules, reposition vessels and realign equipment and containers to accommodate the requirements of their new routings.

As of this communication, it is not clear yet which lanes will be affected or how. We are cautioning our clients that in April, possible concerns may include: schedule delays (maybe a couple of weeks), the possibility of space shortages on vessels, container shortages, and the potential for increased transit times and rates.

While these implications are beyond RTM’s control, we remain committed to providing our clients with the best possible service. We will work harder and longer, as needed, to find you the most expeditious, cost efficient solution to your complex shipping challenges.

RTM Lines is grateful for the support we receive from all out customers. You have made us your shipper of choice. We pledge to do all that we can to deliver the high level of service you have come to expect from us.

Contact RTM Lines now to discuss any concerns or shipping needs at (800) 847-7447, or email questions and rate requests to FCLrates@RTMLines.com. Pricing desks are monitored 24/7.

RTM Lines — 37 North Avenue, Suite 204, Norwalk, CT 06851 — (203) 750-8890