DSV customers hedging themselves against rate fluctuations

While an increasing number of customers are hedging themselves against rate fluctuations, the business is also seeing signs of capacity problems from the Far East, says DSV CEO Jens Bjørn Andersen in an interview with ShippingWatch.

The major container rate fluctuations in recent years on the services between the Far East and Europe make an increasing number of customers at logistics group DSV sign index-based contracts regulated according to the Shanghai Container Freight Index (SCFI) and at prices that follow the market.

"This is a new development that really started back in 2008, but the volatility of the freight rates is much different today and completely extreme compared to what we've seen in the past. That's why more and more customers want to hedge themselves," says DSV CEO Jens Bjørn Andersen in an interview with ShippingWatch, adding that the group is primarily working with short-term contracts for the company's customers:

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