A growing number of shippers of goods in containers link their service contracts with a freight index in order to obtain a bigger degree of price flexibility. Recently, the Federal Maritime Commission has mapped 61 contracts covering goods to and from the United States which are connected to indices. Index contracts make it possible to both carriers and shippers to adapt rates during the length of the contract meaning that none of the parties are punished disproportionately if market conditions change drastically. Furthermore, shippers and carriers with contracts based on indices will be more prone to enter into long-term contracts.
In an interview with ShippingWatch, Lars Jensen, CEO and partner of SeaIntel, estimates that contracts based on indices will gradually gain ground but it is likely to take several years.
Already a subscriber? Log in.
Read the whole article
Get access for 14 days for free.
No credit card is needed, and you will not be automatically signed up for a paid subscription after the free trial.
- Access all locked articles
- Receive our daily newsletters
- Access our app
Get full access for you and your coworkers.
Start a free company trial todayMore from ShippingWatch
Carriers uncertain about their ship emissions – CII becomes reality in 87 days
There are 87 days until CII, which will measure carbon emissions from ships, comes into force. The new regulation is disputed. Some carriers say they know their ship emissions, others find it complicated. ShippingWatch dives into the world of CII.
Norden upgrades result guidance for fifth time this year
Dry bulk and tanker carrier Norden ups its full-year 2022 guidance for the fifth time this year due to, among other reasons, profitable sales of two product tankers and three bulkers, according to a statement.
Pureteq confident in scrubber comeback – new IMO rules will boost the market
During the Covid-19 pandemic, Pureteq has become the world’s largest digital service provider for scrubbers, CEO Anders Skibdal tells ShippingWatch. He thinks the market will get going next year but holds that some are exaggerating their growth forecasts.
Stolt-Nielsen doubles profit – believes market upturn will continue
Norwegian chemical tanker operator Stolt-Nielsen closes the third quarter with a doubling of profit compared to the same period last year. The upturn in the chemical tanker market comes at a good time before contract renewals, says CEO Niels G. Stolt-Nielsen.
Maersk secures major logistics customer in UK
Maersk has bagged a multi-year deal by which the Danish shipping and logistics group will assist British group JCB with handling every link in its supply chain.
IT Specialist 
Ship Design & Transformation Manager 
Managing Director - Europe 
Experienced People & Culture Business Partner for the offshore wind industry 
Vessel Manager 
Technical Superintendent