Each year, importers and exporters negotiate freight rates and services with carriers or carriers as part of the purchase of freight rates. This is called the annual tender, and it is worth using if you ship more than 1000 TEUs per year. Armed with the correct data in an accessible mode, freight brokers will be able to make discoveries that will benefit their end result. Most freight offers are negotiated every year or every two years. Depending on the trade route and customers, negotiations can take place throughout the year, but historically, contract negotiations take place at the beginning of the year, usually in March-April. The ultimate goal of the tenders is to ensure the smooth running and manage costs both during rest and in high season, which usually takes place from August to October or November. FFAs, the most common freight derivative, are traded under the terms and conditions of the Forward Freight Agreement Broker Association (FFABA). The main terms of an agreement include the agreed itinerary, the date of the billing, the size of the contract and the rate at which the differences are compensated. Annual transportation contracts or tenders can be difficult. But if you send huge quantities, they might be a good choice for you. We consulted with experts to develop this guide which covers everything from basic definitions on the use of seasonality to your advantage.

The parties only sign a printed copy of the shipping contract. The general and special terms and conditions are published on the internet to the public, on the information stands and are not required to be signed by the parties; Other documents that govern the terms and conditions of the order are also posted online. A shipowner uses the index to monitor freight rates and protect them from lower freight rates. Charters use them to reduce the risk of higher freight rates. The Baltic Dry Index is considered a leading indicator of economic activity, as an increase in dry basic shipping indicates an increase in raw material production that stimulates growth. The purpose of most transport contracts is to identify fares and responsibilities between freight agents and carriers, as well as their responsibility. However, depending on the type of agreement and the type of business, brokers can juggle a number of types of contracts: the problem of managing freight contracts is not just the number of them among all carriers and supplier partners. It also covers issues such as amendments, situation-based tariff changes, freight-specific conditions and much more.

Simply put, transportation contracts can change and updating them is of the utmost importance. In order to comply with the carrier`s obligation imposed by “Iarovaia anti-terrorism legislation to verify the description of cargo,” PJSC TransContainer has the right to carry out such an audit. In this case, we designed a mobile application for photographic evidence for loaded loading; Responsibility for the corruption of the description of the cargo is established. As marine markets are more at risk, freight derivatives have become a viable method for shipowners and operators, oil companies, commercial enterprises and grain companies to manage freight interest risk. The London-based Baltic Exchange presents the Daily Baltic Dry Quality Index as a market barometer and leading indicator of the maritime industry. There are investors An overview of the price of transferring important raw materials by sea, but it also helps to lease freight derivatives. The index includes 20 shipping routes, measured on the basis of timing, and covers various major bulk carriers, including Handysize, Supramax, Panamax and Capesize. As an importer, there are several important factors to consider in an annual cargo auction procedure: if you have multiple supply points in different geographic areas, identify the high season in each area and try to avoid random negotiations at those times.