Case Study: a global industrial manufacturer achieves $100M in annual savings with Xeneta

A Global Industrial Manufacturer locks in $100M in annual savings with Xeneta

A global industrial manufacturer faced extreme volatility and soaring costs in its ocean freight operations following the COVID pandemic, with manual renegotiations consuming significant resources. To address this, the company partnered with Xeneta, using its market data as a foundation to renegotiate rates. The challenge was to realign its entire portfolio with the market and end a cycle of constant, inefficient contract adjustments.

The solution implemented with Xeneta was to formally index its entire ocean freight portfolio to the Xeneta long-term index, replacing multi-year contracts with annual renegotiations. This move created transparent, structured agreements with carriers that included ceilings, floors, and a threshold for adjustments. The results were profound: the manufacturer locked in $100 million in annualized savings, eliminated quarterly rate management cycles, and freed its team to focus on strategic improvements like carrier rationalization and supply chain resilience.