Global Supply Chain Shipping

A long-term shipping contract is an agreement between a shipper and a carrier that extends for a prolonged period, typically several months or years. These contracts are often preferred by both parties since they offer stability, predictability, and better rates than spot contracts.

One of the main benefits of a long-term shipping contract is that it allows shippers to secure a consistent flow of goods at a set price, reducing their exposure to market volatility. At the same time, carriers benefit from having guaranteed business over an extended period, enabling them to plan their operations and investments more effectively.

The terms of a long-term shipping contract can vary depending on the parties involved, the type of cargo, the shipping route, and other factors. Typically, the contract will specify the duration of the agreement, the volume of cargo to be transported, the agreed-upon shipping rates, and any other relevant details.