We are experiencing big changes in the ocean tendering market. The contracts are getting shorter. Now it is more common to see a monthly or quarterly contract rather than the classical one-year rate agreement.
As we discussed previously in our blog – ‘Schedule reliability in container shipping’, we believe that this can only be positive as there has been numerous changes in the alliances, services and rate levels during the past years, which in some cases has cost shippers dearly in missed sales due to goods not being delivered on time.
We believe that a mix of long and short term contracts in today’s market is ideal when it comes to ocean tendering. Creating contracts like this will ensure you the flexibility of changing or re-negotiating carriers if the schedule and/or service you had contracted changes. And there are ways in which one can make this easier and so make it a much more agile and efficient process.
Spot request for short term contracts and freight tendering for the longer ones are excellent examples.