News / An ILA may be the best deal for liner clients mulling a spot rate gamble

© Wutthichai Luemuang

Shippers and forwarders currently tendering should consider index-linked contracts if they are caught between betting on a fixed deal or gambling with the spot market. 

President of Jon Monroe Consulting, Jon Monroe, told The Loadstar Podcast that, when signing agreements, it was important to understand the relationship between the contract rates and spot rates – as spot rates would determine the contract rate level at the time of signing. 

“If the spot rates are down to a low level, or a much lower ...