This document summarizes findings from a survey of beneficial cargo owners (BCOs) about their ocean freight contracting outlook and negotiations with carriers for 2018. Key findings include:
1) Most BCOs and experts expect freight rates to be 0-5% above 2017 levels on average.
2) BCOs are pushing carriers for "all-in" pricing contracts that include all surcharges and fees to improve cost predictability.
3) While price is the main contract driver, BCOs also consider service quality, customer support, technology, and carrier stability when selecting partners. Satisfaction with ocean carriers is low and declining.
4) Evolving carrier alliances may impact transit