Service commitments, not prices, to take center stage in 2021 container term talks: sources
After the uncertainty that dominated the container markets through most of 2020, service commitments, rather than prices, are expected to take the center stage in the next year’s term contract negotiations, according to sources.
“Going forward, even if a contract costs $100 per TEU [20 foot equivalent unit] extra, shippers won’t mind as long as it gives them a guarantee on price and space, a source based in Singapore said.
Some companies that pay a premium on term contract rates have different perks such as their own block storage on vessels, their container storage at the port, according to Stephanie K Loomis, Vice President FCL Product, US and Canada, Vanguard Logistics Services. Their containers don’t get mixed in with others. These kinds of services is what people are going to talk about now, she said.