Update from Drewry’s Freight Cost Benchmarking Community

Drewry has been supporting shippers and BCOs through its Benchmarking Club for some six years now. As well as benefiting from a clear understanding of contract rates and how their own rates compare to their peers, members also see how they stack-up on transit times, shipment types and free time arrangements. Benchmarking Club membership is exclusive to shippers/BCOs with strict observance of member anonymity.

The shipping world has changed – Covid, port congestion, equipment shortages, space shortages, rail congestion and of course huge increases in contract and spot rates.

The Benchmarking Club has proved to be a valuable community for our members and a great tool in understanding and managing ocean freight generally in these unprecedented times.

Since August 2020, Club membership has increased by 30% with volume throughput doubled and the value of benchmarked freight spend more than three times the level of this time last year.

Members participate in exclusive, bi-monthly “Market Pulse” outlook briefings which cover topics such as rate trends, forward looking market expectations, forecasts, indices and carrier updates. In our most recent Market Pulse, for example, we shared our thoughts on the tendering 2021/22 season and put that discussion in the context of the financial performance of carriers this past year.

Especially valuable are our ‘recent rates only’ benchmarks, which compare member rates with most recently agreed contract rates (reflecting the most recent market circumstances) as well as our short term rate benchmarks looking at members’ spot rates and shorter term agreements.

Our latest Best Practice Forum – again, exclusive to Benchmarking Club members – brought together members to discuss the most pressing issues they are currently facing, such as; booking acceptance / capacity and equipment availability, the impact on supply chains and day-to-day workflows and what solutions are being considered, such as sourcing and/or near-shoring options.

Drewry Benchmarking Club is a rapidly growing global community. Its focus and remit now goes beyond freight cost benchmarking to identifying, interpreting and discussing the latest market trends and forecasts, helping members mitigate cost increases and identify solutions through robust advice and a trusted forum that helps them pre-empt and explain market circumstances to stakeholders within their businesses.

“Benchmarking Club allows us to see trends from both the market and Drewry point of view which provided strategic value on what to expect during the upcoming procurement process. The comparisons of our company’s position in transit times, rates, and shipment methods are of particular value.”
Source: Drewry