Shippers gain leverage for 2026 ocean freight contracts

Shippers are regaining control in ocean freight negotiations as inflationary pressures on freight rates ease. With Red Sea disruptions, front-loading, and tariff-related costs stabilising, shippers are set to secure lower contract rates and improved terms for 2026.

The Drewry East-West Contract Rate Index, which tracks average rates paid by more than 100 multinational shippers across 17 major routes, fell 3% year-on-year to September. This marks the first decline since July 2024, signaling a shift in pricing trends.

According to Drewry’s ocean procurement experts, this modest fall is the start of a broader rate correction. They expect sharper reductions as 2026 contracts go to tender. Despite the decline, the index remains 25% higher than pre-pandemic 2019 levels.

When the market tightens, carriers push for higher rates and stricter commitments. But as supply-demand conditions soften, shippers gain leverage to negotiate better prices, lower surcharges, and stronger service terms.

Drewry advises shippers to strengthen contract clauses in the upcoming tender cycle. Key recommendations include longer payment terms, clearer service quality metrics, and protections against detention and demurrage surcharges. Contracts should also include a rate review clause to adjust pricing if market conditions deteriorate.

“Beyond lower contract rates, shippers must also prioritise risk management and resilience,” said Chantal McRoberts, Director of Drewry Supply Chain Advisors. “It’s not just about rates. It’s about securing flexibility and ensuring contracts support long-term stability.”

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