News / Index-linked agreements: 'shippers have to have the stomach for them'

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Shippers pondering the pros and cons of index-linked agreements (ILAs) “have to have the stomach for it”, as expected rate plunges could make these agreements less enticing in the short term.  

ILAs track freight rates and offer periodic price adjustments to the agreed rate, and have been hailed as a way to ensure both shippers and carriers get a fair deal when large divergences occur between spot and contract rates.     

Chantal McRoberts, director of supply chain advisory for Drewry, said at ...