As many as 52 percent of clients negotiate as usual for a year, while 19 percent negotiate for a year, but with index-based adjustments, says the latest update from Xeneta.

While 13 percent negotiate for 3-6 months, 10 percent continue to use only the spot market, the update added.

"Most customers negotiating their RFQ cycle on an annual basis are likely to do so in the interest of predictability in the softened market. The strategy of longer-term contract negotiations is consistent with pre-pandemic market levels and communicates a less opportunistic attitude on the part of shippers."

To establish a correlation between reduced capacity and tariffs, Xeneta customers were asked to forecast their volumes for Q12023 compared to 2022

Most shippers and freight forwarders see that capacity has decreased by only 10 percent, while 38 percent of customers expect a 10 percent or more drop in capacity. "With this consensus of large shippers, the outlook for carriers remains quite bleak. The customer consensus of reduced capacity was directly reflected in the evaluation of China Main-North Europe Main and North Europe Main-U.S. East Coast Main."