News / Does this volatile market herald the end of long-term freight contracts?

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Shippers and BCOs are being advised against signing long-term contracts with ocean carriers, due to the “unprecedented uncertainty” in the liner industry.

Speaking via a webinar yesterday, organised in response to the coronavirus supply chain disruption, Patrik Berglund, chief executive of Oslo-based ocean freight benchmarking platform Xeneta, said shippers needed to “plan in flexibility” into their requests for quotes.

He recommended that even if shippers did negotiate a 12-month supply relationship with their carriers, they should desist from agreeing the same duration ...