The magical GRI abbreviation – that is a late autumn harvest
A harvest… it has apparently took place… Has it been a plentiful crop?? I do not know… I am not good at agriculture… have you noticed any “cereals” in the fields that could be still cut? I have not … So, a “harvest” time should come to an end?
Nothing could be more wrong! However, there are industry domains, and even branches which during a late autumn (since sill winter has not come as it starts at the end of December) there is a real harvest. And with the approval of all customers!
What are these branches? It is a commerce and a transport!
Let us start from a commerce – because it is easier 
It is an open secret that in Christmas time occurs a high demand for making purchases. In this period, we are definitely more prone to spend money, not necessarily economically reasonable (e.g. Christmas gifts), and on this inclination base all traders, merchants, vendors, fishwives and many other persons which try to overwhelm a market with their products and – what is more – sell them to us! Because our price perception is limited… A small amount of time, one needs to buy a lot of “gifts” – a price takes a second place. Traders compete in so called promotions. Those more and more inquiring realise that these promotions are just pure “live” – not wool – but untruth! An ordinary lie!! The same goods were available in March of the current year with a price lower by a several PLN or other monetary units. But when a customer wants to buy – you must sell him, and there is any reason not to earn besides. After all, goods cannot lie fallow – especially, that it is mostly “seasonal”. If there is a demand, one should adjust supply to it… That is the whole truth about an economic phenomenon entitled “Christmas”. It is enough to change a tag with a regular price for a promotional one (not changing the price itself)… A price makes wonders.
That is the end about a trade.
But to have anything to trade, first you have to produce or import it. And here I will focus not on manufacturing (at which I am not so good), but on importing goods – at which I am rather good.
The next open secret is that ALL carriers, without any exclusion (maritime, air, inland) fight in this period with a concentrated demand for the transportation services. But do not get deceived, Dear Readers, by a word “fight”… So, this “fight” is really wiping out customers who are at the mercy of entities transporting their goods. Well, what are they “to trade”?
Coming back to the merit – GRI – that is General Rate Increase. A general freight increase. What is this? Nothing different than next kind of :promotion”… To tell you the truth, it is an evident result of the market game of demand and supply for the transportation services. Increasing demand? Yes. Does a supply increase? Perhaps, it does, but so what because of that if it grows disproportionally to a demand?? I will reveal you more about this, but maybe in connection with the next post about the GRI – because I must catch the right moment.
Therefore, if all merchants want to import goods in the period – widely called – “pre-Christmas” they have a limited supply of a place in the transport. It is a simple way to make carriers allow for any increases in a price !! And it does not matter that a freight from the main ports in September cost X USD?? Now it costs 2X USD and there is all about this subject! Who wants – let them use. Who does not want – let them do not use. We have a free market!!
NOBODY MUST ANYTHING!
Now, I tell you probably a secret which maritime shipping lines, inland, rail and air carriers, as well as other ones – whomever they are – want to hide from their customers. Many times in the periods just before a so called peak season (PS) carriers “suspend” performing services in some directions, on some roads, for some goods… You will ask for a reason. The reason is that when it comes a peak season they are allowed to increase prices WITH IMPUNITY.
Who of you – MERCHANTS – will be so brave not to import your goods in the period of the highest harvest in the trade branch? Who of you will decide to give up a field for a competition? Who of you will commit a trade suicide not delivering the goods to your shops?
NOBODY!!! And at least nobody in his right mind…
You a fuel of the GRI… Not a heavy Diesel, not aviation fuel, not crude oil for trucks – just YOU! I mean traders, merchants, vendors, sellers… but also importers, purchasers, customers!!! Without your “engagement” would not be any demand for the extended supplies… just say that you do not have a place to store your goods, that trends do change, that… that… clear…
But you cannot deny that a late autumn is also a “harvest” time for you…
To sum up – we are guilty by ourselves. Vendors and buyers. And I am afraid that such order will not be changes by anything.
P.S. Soon the maritime carries intend to introduce the GRI on their main commercial routes… About the size of this GRI I will inform you in the nearest time – in a few days’ time…
Believe me – it will not be just a “correction” but an ordinary increase! And a high one!!
P.S.2 In my professional career I had at least one such a season when ship owners organised AUCTIONS for free places which had been left after completing all “global” contracts…
Just recall my writing while paying higher and higher freight rates as Christmas comes…
I invite you to comment upon…
