Shippers eye better 2026 as global freight pressures ease: Drewry

Inflationary pressures on freight rates—stemming from Red Sea disruptions, front-loading, and tariff-related challenges—are beginning to ease, offering shippers renewed optimism ahead of 2026 contract negotiations.

According to Drewry, its East-West Contract Rate Index, which tracks rates paid by over 100 multinational shippers across 17 key ocean routes, fell 3 per cent year-on-year (YoY) in September—the first annual decline since July 2024.

Though the dip is modest, 3 per cent YoY, it signals a turning point in the ocean freight market, where shippers are expected to regain leverage in contract discussions with carriers and forwarders. The index, however, remains 25 per cent higher than pre-COVID 2019 levels, indicating that full price normalisation has yet to occur, Drewry said in a release.

When markets tighten, carriers typically command higher rates and greater volume commitments from customers. But with easing capacity constraints and stabilising global trade, shippers now have an opportunity to negotiate better rates, improved service quality, and extended payment terms.

Drewry advises companies to focus not only on lowering rates but also on strengthening contract language—covering surcharges like detention and demurrage, adding rate review clauses, and improving service reliability commitments.

“Other than the prospect of lower contract rates for shippers, the other important aspect of bid strategy for 2026 contracts is risk management and resilience. It is not just about rates,” said Chantal McRoberts, director of Drewry Supply Chain Advisors, who works with shippers to plan, optimise or support ocean bids using industry best practices.

ALCHEMPro News Desk (HU)