WHO IS THE RIGHT PARTNER FOR SHIPPERS? (PART ONE)

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ABOUTXENETA

At Xeneta we believe there is an untapped potential for everyone in the industry, to systematically learn from our individual and collective efforts. We hold true that "if you cannot measure it, you cannot improve it". That’s why we think actionable metrics is the key to continuously evolve for every business, and ultimately the entire industry. Rethinking global logistics is the vision of Xeneta.

With international experience from the logistics industry, we have first-hand knowledge of the challenges related to high volatility and lack of transparency in the ocean freight market. By combining logistics background and information technology expertise, we found the solution to these challenges.

WE ARE TRANSFORMING GLOBAL LOGISTICS

ARE YOU PAYING THE RIGHT CONTAINER

FREIGHT RATES?

DISCOVER SAVINGS POTENTIAL IN REAL

TIME.

CONTACT US.

INTRODUCING THE PROS AND CONS OF WORKING DIRECTLY WITH CARRIERS AND

FREIGHT FORWARDERS TO HELP SHIPPERS,

VS.

WHERE TO GET THE BEST SERVICES

AS A FIRST INSTINCT, TO GET THE BEST SHIPPING RATES AND SERVICE, YOU MAY WANT TO GO STRAIGHT TO THE SOURCE THAT ACTUALLY MOVES YOUR CARGO.

THESE ARE THE VOCCS, VESSEL OPERATING COMMON CARRIERS WHO ARE THE OWNERS OF THOSE MASSIVE VESSELS AND CONTAINERS THAT PROVIDE TRANSPORTATION OF CARGO FROM THE PORT OR POINT OF RECEIPT TO THE PORT OR POINT OF DESTINATION.

HOWEVER, JUST AS MOST OF US DO NOT BUY ENOUGH SHOES IN A YEAR THAT WOULD MAKE US ABLE TO PURCHASE DIRECTLY FROM THE SHOE FACTORY, VOCCS ALSO HAVE LIMITATIONS. THEY DO NOT HAVE THE RESOURCES AND THEY DO NOT WANT LOW TEU VOLUME SHIPPERS TO CONTACT THEM.

WORKING WITH VESSEL OPERATING COMMON

CARRIER (VOCC)

ARE YOU PAYING THE RIGHT CONTAINER

FREIGHT RATES?

DISCOVER SAVINGS POTENTIAL IN REAL

TIME.

TYPICALLY SHIPPERS THAT MOVE LARGE VOLUMES ON FEW LANES CAN BENEFIT GREATLY FROM SIGNING AGREEMENTS DIRECTLY WITH VOCCS. THERE ARE MULTIPLE REASONS TO IT.

FROM FINANCIAL POINT OF VIEW, WORKING DIRECTLY WITH THE COMPANY THAT ACTUALLY MOVES THE CARGO THE SHIPPERS CAN BYPASS THE MIDDLEMAN, ALLOWING THEM TO SAVE ON WHAT WOULD NORMALLY BE CASHED BY A FORWARDER.

FOR COMPANIES SUCH AS GIANT RETAIL CHAINS TO KEEP MERCHANDISE IN THEIR STORES, AND WEATHER SEASONALITY, PROVIDED SERVICES AND AVAILABILITY OF SHIPPING CONTAINERS ARE EQUALLY IF NOT EVEN MORE IMPORTANT THAN PRICE.

HOWEVER, JUST AS MOST OF US DO NOT BUY ENOUGH SHOES IN A YEAR THAT WOULD MAKE US ABLE TO PURCHASE DIRECTLY FROM THE SHOE FACTORY, VOCCS ALSO HAVE LIMITATIONS. THEY DO NOT HAVE THE RESOURCES AND THEY DO NOT WANT LOW TEU VOLUME SHIPPERS TO CONTACT THEM.

FREIGHT FORWARDERS NEITHER OWN NOR HAVE DIRECT CONTROL OVER ANY ASSET. THEY HAVE TO CONTACT AND INSTRUCT THE CARRIERS TO MAKE SHIPPING UNITS AVAILABLE AND BOARD THEM ON THE VESSEL.

CARRIERS ON THE OTHER HAND OWN AND CONTROL MAJORITY OF CONTAINERS, VESSELS AND OTHER ASSETS SO THEY HAVE THE ABILITY TO DELIVER THE REQUIRED QUANTITIES AND VARIETIES OF UNITS AT ANY TIME AND AT ANY GIVEN LOCATION WITHIN THEIR NETWORK.

TYPICALLY SHIPPERS THAT MOVE LARGE VOLUMES ON FEW LANES CAN BENEFIT GREATLY FROM SIGNING AGREEMENTS DIRECTLY WITH VOCCS. THERE ARE MULTIPLE REASONS TO IT.

WHILE A VOCC IS A GREAT CHOICE FOR THOSE RUNNING LARGE FEW-LANES SUPPLY CHAINS, SHIPPERS EVEN WITH LARGE, 50,000 TEU VOLUME MIGHT COME SHORT IN NEGOTIATING DIRECTLY WITH CARRIERS IF THEIR TEU VOLUME IS SPREAD OUT OVER THOUSANDS OF SHIPPING LANES AND THE AVERAGE TEU'S-PER-LANE IS JUST A FEW PER YEAR.

STAYTUNEDSTAY TUNED FOR PART TWO WHERE WE LOOK AT THE PROS AND CONS OF WORKING WITH NVOCCS AND 3PLS.

FREIGHT FORWARDERS NEITHER OWN NOR HAVE DIRECT CONTROL OVER ANY ASSET. THEY HAVE TO CONTACT AND INSTRUCT THE CARRIERS TO MAKE SHIPPING UNITS AVAILABLE AND BOARD THEM ON THE VESSEL.

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