Reducing Risk in Contracts

A new Drewry analysis highlights how risk exposure in container shipping contracts has sharply increased. Even when shippers secure base rate reductions during bidding, carriers often introduce new fees later—like fuel surcharges or unexpected regulatory charges. Add in uncontrolled detention/demurrage, frequent blank sailings, and reduced capacity, and what looked like a solid deal can quickly unravel.

Post-bid surprises are also a concern. Shippers may discover competitors secured better rates or that market shifts make contracted rates look out of sync. Weak contract clauses further compound the issue, leaving many exposed to post-bid volatility and frustrated stakeholders.

TLC is watching these developments closely, and is ready to adjust to fluctuations in availability and capacity to keep your freight on time and moving safely.