The logistics industry is seeing a clear split in contract strategies: Major corporations are rushing to secure multi-year "evergreen" shipping agreements at premium rates, while small to mid-sized businesses approach long-term commitments with caution. Let's break down what's driving this divide – and what it means for your supply chain planning.
1. The Big Players' Playbook
Global shippers with deep pockets are paying 12-18% above spot market rates to lock in capacity through 2025-2026. Why? Three key reasons:
2. Predictability Over Price: For manufacturers moving 10,000+ containers annually, avoiding COVID-era chaos (remember the $20k/FEU days?) outweighs short-term savings.
3. ESG Pressure: Publicly traded companies need stable partners to meet sustainability commitments – something spot market hopping can't provide.
4. Hidden Cost Avoidance: As one Fortune 500 logistics director told us: "A 15% premium beats getting stuck with last-minute air freight bills again."
Why Smaller Shippers Hit Pause
Meanwhile, businesses moving <500 TEUs/year show reluctance:
- "We got burned in 2022 signing a 3-year contract right before rates crashed" – Food importer, Miami
- Limited negotiation power with carriers makes exit clauses critical
- Cash flow concerns about committing budgets amid economic uncertainty
The Middle Ground Emerging
Smart shippers are blending strategies:
- Tiered contracts with volume-based rate adjustments
- *6-month opt-out clauses* tied to market indexes
- Regional partnerships (e.g., dedicated Asia-USWC lanes) vs global commitments
At XMAE Logistics, we're helping clients navigate this split market through:
✅ Hybrid contract modeling
✅ Real-time rate benchmarking
✅ Carrier performance analytics
The Bottom Line
There's no one-size-fits-all answer. Whether you need ironclad capacity guarantees or flexible solutions, the key is aligning your contract strategy with actual operational needs – not just following the herd.
Need help structuring agreements that protect your interests in volatile markets? Explore our contract advisory services.
