Shippers need to review their game plan ahead of new contract talks

With the Asia-Europe contract renewal negotiating season fast approaching, Drewry is advising shippers to rethink their procurement strategy or risk hefty price hikes and service failures.

“Rapid consolidation in the supplier base, changes in supplier behaviour, huge reductions in vessel orders and new developments in tender technology will bring real change and uncertainty to the ocean transport procurement environment,” warned Philip Damas, head of Drewry Supply Chain Advisers.

He added that the strategy of BCOs [beneficial cargo owners] in the past five years of securing significant reductions by tendering to a number of carriers “will simply not work as a blueprint for the forthcoming annual tender”.

Continue reading on The Loadstar: 

Shippers need to review their game plan ahead of new contract talks

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