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76% Xeneta customers want to use index-linked contracts

43% Xeneta customers anticipate disruption but no major issue even if carriers blank 50% of all scheduled sailings.

76% Xeneta customers want to use index-linked contracts
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Almost 76 percent of Xeneta customers recognise the value of Index Linked Container Contracts (ILCCs) and want to procure capacity in the future, primarily using ILLCs.

"With the continuous fluctuation in the spot market recently, regular renegotiations can be cost and time deficient. This is where ILCCs are advantageous to shippers. Instead of having a fixed rate contract that needs to be renegotiated periodically, ILCCs can be automatically adjusted based on the set index," says an update from Xeneta.

Some highlights of a webinar last week hosted by Chief Analyst Peter Sand and Stanley Aizenstark, Vice President XSI-C:
* As much as 75 percent customers did not procure any capacity via ILCCs
* Only 9 percent customers' cargo is being rolled due to the anticipated blank on 50 percent of scheduled sailings from carriers
* 12 percent customers said they use ILCCs to procure up to 25 percent of freight
* Only 6 percent customers said they use ILCCs to procure up to 50-75 percent of freight;and
* Only 6 percent of customers said they use ILCCs to procure more than 75 percent of freight.

When asked if carriers blanking 50 percent of all scheduled sailings would impact them, 26 percent customers said they would not be affected at all while 43 percent customers anticipate some disruption but no major issue.

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