Data-Driven Ocean Freight Strategy Cuts Costs for Shippers

Emser Tile's chief supply chain officer presented insights at TPM26 by S&P Global on how shippers can achieve more cost-effective ocean freight arrangements through sophisticated data analysis. The company's approach involves taking a "multi-dimensional look" at contracting decisions—suggesting the integration of multiple data sources and variables such as lane economics, carrier performance metrics, seasonal demand patterns, and market conditions. This methodology represents a shift from reactive to proactive freight contracting, where data informs negotiation strategies and rate-setting decisions rather than relying on historical precedent or carrier proposals alone.

For supply chain professionals, this case study underscores the strategic importance of leveraging analytics in one of the largest operational expenses—ocean freight. By systematically analyzing trade routes, carrier options, and contractual terms through a data lens, shippers can identify optimization opportunities that may not be apparent through traditional procurement methods. This approach is particularly valuable in the volatile ocean freight market, where rates and capacity fluctuate based on global economic conditions, fuel prices, and seasonal shipping patterns.

The implications are significant for supply chain operations: companies that invest in data infrastructure and analytical capabilities gain a competitive advantage in contract negotiations, can better forecast freight costs for budgeting, and reduce their vulnerability to market shocks. The multi-dimensional framework suggests that successful ocean freight management now requires integration across multiple departments—supply planning, procurement, operations, and finance—to harmonize insights and make informed contracting decisions.