breakbulk vessel

Tough Outlook For Ocean Contract Negotiations

Ocean contract negotiations by beneficial cargo owners and shippers are expected to be tougher this year and shaped by freight rate increases, according to consultancy Drewry.

The firm predicts that rapid consolidation in the supplier base, changes in supplier behavior, huge reductions in vessel orders and new developments in tender technology will bring real change and uncertainty to the ocean transport procurement environment.

“This year’s ocean contract negotiations will be different … Today’s business environment is starkly different from that of two years ago,” a Drewry spokesperson commented, adding that the incorporation of “benchmarking and e-sourcing best practices” into tender management process may help to mitigate rate increases.

Headquartered in London, Drewry provides maritime research consultancy, market insights and advisory services across the global shipping sector.The firm is hosting a webinar for beneficial cargo owners and shippers around the topic on Sept. 26.

Photo: BCO are expected to face difficult ocean contracts negotiations for breakbulk vessels. Credit: Wikimedia

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