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

a large global industrial manufacturer locks in $100M in annual savings with Xeneta

a large global industrial manufacturer was facing immense pressure to reduce its ocean freight costs after market rates surged during the COVID pandemic. The constant, manual cycle of renegotiating multi-year contracts was consuming significant capacity and masking exposure. Using market data from Xeneta as a foundation, the company embarked on a major renegotiation effort.

The solution, implemented by Xeneta, was to formally index its entire ocean portfolio using the Xeneta long-term index. This replaced the annual renegotiation cycle with three-year contracts featuring agreed ceilings, floors, and a 10% quarterly threshold. The results were transformative: the company locked in $100M in annualized savings, eliminated quarterly rate management cycles, and freed up procurement time to focus on strategic improvements like carrier rationalization and sustainability.