News / 'Tariff madness' will prompt renegotiation of ocean shipping contracts

16/04/2025

Today’s “absolutely nuts” container shipping market will spur contract renegotiations, as rates and minimum quantity commitments (MQCs) are questioned, according to Patrik Berglund, CEO of Xeneta.

“Disruption has been constant for the past six years. It’s one thing after another,” said Mr Burgland.

And as a recent Loadstar Premium report highlighted, “the colossal waves of uncertainty couldn’t come at a more unfortunate time”.

“April is traditionally annual contract signing season, when most shippers and their carriers conclude pricing and volume commitments for the next ...

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Makarand Shirgaokar
April 18, 2025 at 9:04 am
This piece does a great job of capturing the current turbulence in the container shipping landscape. With macroeconomic headwinds, geopolitical tensions, and persistent supply-demand imbalances, traditional contract models are being tested. Shippers are caught between volatile spot markets and rigid MQC-based contracts, leading to growing pressure for renegotiations. Carriers, on the other hand, are resorting to surcharges and GRIs to prevent rates from bottoming out, which only adds to the uncertainty. As we head into what’s traditionally contract renewal season, flexibility and real-time market visibility will be essential for both shippers and carriers to navigate the months ahead.

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Rajeev Kathuria
May 11, 2025 at 3:27 pm
Surcharges are like “speed breaker” on the straight fall is an intriguing one. The idea seems to be to slow or control a precipitous drop in base freight rates, much like a physical speed breaker controls the velocity of a vehicle. A mechanism like this would help stabilize the market by preventing rapid downward adjustments that might destabilize both carrier margins and overall service reliability. Think of it as a regulatory or industry-standard safeguard—a controlled deceleration of rate changes —that could be structured, for instance, as a rule preventing base rates from decreasing faster than a fixed percentage within a given period.

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