Highly-touted index linked contracts hardly known among sales reps
MARKET research company SeaIntel has discovered that highly-touted index-linked contracts, which promised to dampen freight rate volatility, are little known among carrier and forwarder sales reps.
This finding is the result of a "mystery shopper" survey in which 20 companies were contacted by an agent of Denmark's SeaIntel posing as a potential customer, reported American Shipper.

Companies contacted were Maersk, MSC, CMA CGM, Evergreen, Cosco, Hapag-Lloyd, Hanjin, APL, China Shipping, MOL, OOCL, NYK, "K" Line, Zim, Hyundai, UASC, Kuehne + Nagel, Panalpina, CEVA and Geodis Wilson.

"Our mystery-shopper programme shows that for 14 out of the 20 companies, at least one sales representatives or the head office said their company offered ILCs [index linked contracts]," said SeaIntel partner Alan Murphy.

"Only NYK answered consistently across all three sales offices and the head office, all agreeing that ILCs was not something NYK offered," he said.

Of the 44 reps responding, 15 per cent said they had never heard of them or understood them. The research was done in cooperation with the Container Freight Derivatives Association.