ports

Shippers Stick With Annual Ocean Contracts Despite Pricing Chaos

Major U.S. shippers continue backing annual ocean freight agreements even as this year's transpacific eastbound contracting cycle grows increasingly complex, industry procurement officials say.

Carriers have fragmented their pricing methodologies significantly, with some implementing emergency fuel surcharges while others are shifting to monthly bunker adjustments. This divergence from decades of standardized pricing structures has made rate calculations far more difficult for shippers negotiating annual terms.

Noatum Logistics procurement leadership described 2026's contract season as the most challenging in three decades of experience. Despite these headwinds, shippers maintain preference for annual-rate tenders over shorter-term or index-linked alternatives.

Market participants express concern about geopolitical factors that could reshape capacity dynamics. A potential opening of the Strait of Hormuz could dramatically alter vessel routing and spot rates, creating uncertainty for forward contracting decisions.