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Shippers will be back on the front foot when the 2023 contract negotiations begin, but a leading maritime consultant is advising BCOs not to “seek revenge” by excluding carriers that have « treated them badly. »
In its latest executive briefing, Drewry reminds shippers preparing to tender for the coming year that there are now just nine global ocean carriers, and that most medium and larger-sized BCOs will need to work with at least five to support their supply chain.
The consultant said it would be “tempting for logistics buyers to seek revenge,” but suggested that in shippers’ own interests, “restoring business relationships” would be “a key consideration in 2023.”
However, Drewry is also advising shippers to play hardball in terms of new rate agreements and on terms and conditions of the contracts – for example, on free time for box storage at terminals, higher service level commitments and longer payment terms.
With container spot rates across many trades in freefall, down some 50% from their peak, Drewry said it “expects further falls in contract rates during 2023, as overcapacity increases.”
Read more in an article from gCaptain.