How to Negotiate Ocean Carrier Contracts in 2025

How to Negotiate Ocean Carrier Contracts in 2025

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As 2025 approaches, shippers encounter a complicated and ever-changing landscape in the ocean carrier industry. With fewer carriers controlling the market, negotiating favorable contracts has become more complex, leading to increased stress. To successfully navigate this evolving environment, adopting a proactive and strategic approach is essential. Here are some tips to assist you.

Shippers have a lot on their minds right now: labor disruptions, tariff considerations, geo-political conflicts, and weather events, to name a few. As an added layer of pressure, the ocean carrier landscape has changed drastically in the last decade. With fewer carriers and larger vessels in the market, negotiating favorable contracts has become more complex. Shippers must now balance planning and moving their volume with fewer sailing options while navigating port congestion, supply chain imbalances, and shifting sourcing patterns.

While maintaining agility within a global supply chain is largely reactive as major events arise, ocean carrier contracts are one place shippers have the power to be proactive in their approach. We've outlined some key questions to ask and best practices that allow shippers to successfully navigate the ocean carrier environment.

How to Negotiate Successfully

Successful negotiations with ocean carriers require a well-defined strategy incorporating data-driven insights, strategic sourcing, and comprehensive transportation planning.

Data-Driven Insights

By analyzing historical data, you can gain valuable insights into past performance, identify trends, and pinpoint areas for improvement. This data-driven approach empowers you to make informed decisions regarding carrier selection, route optimization, and cost reduction strategies.

• Were you able to find the adequate number of ocean carriers to accommodate and transport your freight on schedule?
• Have you identified any positive or negative exceptions or trends in the service provided by different ocean carriers?
• Can you identify which ocean carrier strings were more or less optimal in transporting your freight?
• Have you determined which vendors performed on-time delivery and which experienced significant dwell time and delay?
• Have you determined which ocean consolidators provided the best service?

Strategic Sourcing

A detailed strategy is critical for securing capacity and negotiating favorable rates. Consider volume, lane requirements, and special handling to identify the most suitable carriers and service providers. Having this information readily available lets you effectively negotiate contracts and ensure the timely and efficient movement of your goods.

• Have you identified which lanes your organization will most commonly source from?
• Do you know whether specific compliance-related requirements exist on shipping commodities (e.g., dangerous/hazardous goods, oversized goods, or goods that require special packaging)?
• Do you know if there will be any expected peaks in volume throughout the year, such as seasonal surges?

Comprehensive Transportation Planning

A well-defined transportation plan is crucial for achieving your shipping goals. You can make informed decisions about the most efficient and cost-effective transportation solutions by analyzing your specific needs and considering factors such as budget, volume, and lane requirements.

• Whether you choose a direct ocean carrier, a Non-Vessel Operating Common Carrier (NVOCC), or a combination of both, a comprehensive transportation plan will help you optimize your supply chain and minimize costs for your supply chain.
• Do you know if your strategy will be driven entirely by direct ocean contracts or by combining direct ocean contracts and Non-vessel Operating Common Carriers (NVOCCs)?
• Are you aware of the volume allocation between direct ocean carriers or the combination of direct ocean carriers and NVOCCs?
• Do you know if it would be optimal to negotiate at region, lane, or string level?
• Do you know which movement type will be most efficient and cost-effective? Will it be port-to-port? Door to Door?

For more information on preparing for ocean contract negotiations, contact Carrier Allocation for assistance or download the flyer below.

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