In recent years, ocean freight stakeholders have become more sophisticated in using data to negotiate better fixed-price ocean contracts. But surveys of BCOs and forwarders in 2021 and late 2023 show, once again, that when the spot market fluctuates, contracts often become unreliable – with the ongoing Red Sea crisis another recent example.
These examples, though, may drive increased interest in more reliable contracting options, like index-linked contracts that align incentives and keep containers moving or freight derivatives that help players contend with price fluctuations.
This report explores:
- Contract reliability data during the spot market surge in 2021 and fall in 2023
- BCO shifts to carrier diversification and fewer long-term tenders in response
- Increased importance of market intelligence
- Index-linking and derivatives as alternative contracting strategies
