How can you ensure a fair and reasonable container shipping contract?

1 Know your requirements

Before you start looking for a container shipping contract, you need to have a clear idea of your requirements. This includes the volume, frequency, origin, destination, transit time, and service level of your shipments. You also need to consider the seasonality, variability, and flexibility of your demand. Having a realistic and accurate forecast of your requirements will help you compare different offers and avoid overpaying or underestimating your needs.

2 Research the market

To negotiate a fair and reasonable container shipping contract, you need to have a good understanding of the market conditions and trends. This includes the supply and demand of container space, the rates and surcharges of different carriers and routes, the reliability and performance of different service providers, and the regulatory and environmental factors that may affect your shipments. You can use various sources of information, such as industry reports, trade journals, online platforms, and professional networks, to research the market and benchmark your expectations.

3 Evaluate your options

Once you have your requirements and market research, you can start evaluating your options for a container shipping contract. You can either use a freight forwarder or a broker to help you find and compare different offers, or you can contact the carriers directly and request for quotes. You should look for a contract that meets your needs and budget, but also provides flexibility, stability, and transparency. You should also consider the reputation, experience, and customer service of the carrier or the intermediary.

4 Negotiate the terms

After you have shortlisted your options, you can proceed to negotiate the terms of your container shipping contract. You should aim for a win-win situation, where both parties benefit from the agreement and establish a long-term relationship. You should focus on the key elements of the contract, such as the rate, the duration, the volume commitment, the allocation, the surcharges, the penalties, the force majeure, and the dispute resolution. You should also be prepared to compromise, trade-off, and walk away if necessary.

6 Monitor the performance

After you sign the contract, you should monitor the performance of your container shipping service provider and your own compliance with the contract. You should track and measure the key indicators of service quality, such as the on-time delivery, the damage rate, the customer satisfaction, and the cost efficiency. You should also communicate regularly with your service provider and provide feedback, suggestions, and complaints if any. You should also review the contract periodically and make adjustments or renegotiations if needed.