Shippers' growing appetite for tenders adds to market volatility, say forwarders

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Shippers, in their drive to force down prices, are increasing market volatility ? something they claim they want to avoid. While much of the industry focus has been on loss-making carriers, forwarders report that they too are feeling the pinch as the tendering process gets ever-more fierce and price driven, with shippers often failing to honour contracts if the market price falls further.

“Shippers want consistency of price, and the tender process helps that,” said one senior forwarder. “I can understand ...