News / TPM: Volatile ocean rates the stumbling block to index-linked contracts

Photo: Hapag-Lloyd.

Index-linked contracts are “less desirable” on the transpacific trade, as shippers “need predictability on cost”, and favour longer, traditional contracts, it was reported this week.  

CEO of Hapag-Lloyd Rolf Habben Jensen told a press briefing at S&P Global’s TPM25 event in Long Beach, California, the German carrier had seen a slight increase in index-linked contracts. 

He said: “Index-based products sound really, really nice, and in some cases, also work. We have a fair bit of volume on index-based pricing.”

Index-linked contracts track ...