Danish shipping company Maersk rejects the notion that the power balance has tipped to the advantage of customers ahead of important negotiations regarding new freight contracts.

”We are absolutely in a favorable negotiating position,” states Chief Executive Søren Skou to Danish business media Finans.

During the pandemic, companies were willing to pay almost anything to get their goods onboard the overloaded ships. But now, there is plenty of available space again, meaning customers should be in a better position.

This has already led to large price declines on the spot market. Analysts assess that long-term contracts will see a similar trend when these are up for renegotiation around the turn of the year.

Skou acknowledges that contracts will be made at lower levels than during the pandemic, but he says to Finans that customers are still very interested in making long-term agreements.

Maersk has a strategy of moving more companies over onto long contracts, which cover the entire transportation from factory to end user. This strategy gained pace during Covid where the shipping major managed to move many customers over onto these contracts.

The carrier has previously stated that 71 percent of volumes now come from long-term deals compared to around 45 percent prior to the pandemic.

English edit: Kristoffer Grønbæk

Customers are putting pressure on carriers: ”There is clearly an element of payback”

US shipper highly displeased with Maersk in new complaint to FMC