WHO IS THE RIGHT PARTNER FOR SHIPPERS?

(PART TWO)

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@XENETA_AS

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.

IN TODAY’S POST, WE WILL TALK ABOUT WORKING

WITH NVOCCS AND FREIGHT FORWARDERS.

SEE PART ONE

WHEN WE THINK OF “LOWEST RATES” WE MAY AUTOMATICALLY QUALIFY IT AS A GOOD DEAL. YES, LOWEST FREIGHT RATES ARE INCREASINGLY SUBJECTIVE TO THIS VOLATILE MARKET THAT IS INFLUENCED BY A NUMBER OF CHANGING FACTORS SUCH AS OPEN SPACE ON A VESSEL, COST OF FUEL, ACTUAL SUPPLY - DEMAND AND OTHER UNPREDICTABLE FACTORS.

COMING IN UNDER FORECAST WHEN SHIPPING CARGO IS USUALLY A GREAT THING. HOWEVER, IT IS NOT ALWAYS SO POSITIVE WHEN THE MARKET IS AT A LOW AND YOUR COMPETITION IS PAYING EVEN LESS.

IN ADDITION, INTERNAL RESOURCES AND SHIPPING EXPERTISE ARE NOT ALWAYS READILY AVAILABLE TO MAKE THE NECESSARY CHANGES ON THE FLY.

NVOCCS COME TO THE RESCUE

SHIPPERS MIGHT WANT TO CONSIDER PARTNERING WITH AN NVOCC WHICH LEGALLY OPERATES AS A CARRIER BY ACCEPTING ALL THE RESPONSIBILITIES FOR THE CARGO AS WELL AS ISSUING THEIR OWN BILL OF LADING.

NVOCCS WORK WITH MULTIPLE SHIPPERS, BCOS AND COMMIT HUGE VOLUMES TO DIFFERENT VOCCS, WHICH MEANS HIGHER LEVELS OF BUYING POWER AND DISCOUNTED RATES.

THE SURGING NUMBER OF MEGA-SHIPS AND SLUGGISH GLOBAL TRADE GROWTH HAVE RECENTLY FORCED EVEN THE LARGEST VOCCS TO RESTRUCTURE THEIR SERVICE LOOPS, REDUCE NUMBER OF PORT OF CALLS THAT HAVE LEFT SHIPPERS WITH FEWER SHIPPING OPTIONS.

ALTHOUGH VOCCS HAVE BECOME MORE FLEXIBLE, OFFERING MULTIPLE SAILING SCHEDULES THROUGH SHIPPING ALLIANCES, VOCCS TYPICALLY RUN ONLY ONE SAILING PER PORT PER WEEK.

ARE YOU PAYING THE RIGHT CONTAINER

FREIGHT RATES?

DISCOVER SAVINGS POTENTIAL IN REAL

TIME.

FOR SHIPPERS WHO ARE RUNNING LIGHT ON INVENTORY, THAT MIGHT NOT BE SOON ENOUGH. SINCE NVOCCS WORK WITH CARRIERS FROM MULTIPLE SHIPPING ALLIANCES THEY CAN OFFER VARIOUS SAILING OPTIONS WHETHER IT’S HIGH OR LOW SEASON, EXISTING MARKETS FOR SHIPPERS OR NEW TERRITORIES THEY WANT TO PENETRATE INTO.

FREIGHT FORWARDERS THAT EITHER ACCESS NVOCCS, OR IS AN NVOCC, SPECIALIZE IN TAKING THE HASSLE OUT OF LOGISTICS, AND OFFER UP LONG LIST OF VALUE ADDED SERVICES SUCH AS REAL TIME VISIBILITY, GUARANTEED ON-TIME DELIVERY, PORT-TO-PORT DELIVERIES.

THE SURGING NUMBER OF MEGA-SHIPS AND SLUGGISH GLOBAL TRADE GROWTH HAVE RECENTLY FORCED EVEN THE LARGEST VOCCS TO RESTRUCTURE THEIR SERVICE LOOPS, REDUCE NUMBER OF PORT OF CALLS THAT HAVE LEFT SHIPPERS WITH FEWER SHIPPING OPTIONS.

SHIPPING LINES NEEDED TO IMITATE FREIGHT FORWARDERS AND OFFER A

GREATER RANGE OF SERVICES, AS WELL AS DIFFERENTIATE THEIR

OFFERING FROM COMPETITORS.

- ROLF NIESE, RECENT HEAD OF LOGISTICS

FULL SERVICE PAMPERING FROM FREIGHT

FREIGHT FORWARDERS KNOW VERY WELL THAT THEY CAN’T COMPETE WITH VOCCS ON PRICE ALONE SO THEIR FOCUS IS MORE ON VALUE ADDING SERVICES POWERED BY HUGE INVESTMENTS INTO IT/COMMUNICATION SYSTEMS.

SHIPPERS, WHO DO NOT HAVE IN-HOUSE LOGISTICS PROFESSIONALS CAN FACE A SERIOUS HOLE WHEN TRYING TO OPTIMIZE THEIR LOGISTICS OPERATIONS. , IN MANY CASES, THESE COMPANIES NEED TO OUTSOURCE THEIR LOGISTICS RESPONSIBILITIES IN ORDER TO RESPOND TO MARKET VOLATILITY OR FIX ANY ISSUES WITHIN THEIR SUPPLY CHAIN.

SHIPPERS WITH A FULLY OUTSOURCED BUSINESS MODEL ARE NOT ONLY LOOSING CONTROL OF THEIR OWN SUPPLY CHAIN BUT ARE ALSO LEAVING MONEY ON THE TABLE WITH EVERY CONTAINER SHIPPED.

VOCCS OR NVOCC/FREIGHT FORWARDERS | PICK WHAT

WORKS FOR YOU

FREIGHT FORWARDERS THAT EITHER ACCESS NVOCCS, OR IS AN NVOCC, SPECIALIZE IN TAKING THE HASSLE OUT OF LOGISTICS, AND OFFER UP LONG LIST OF VALUE ADDED SERVICES SUCH AS REAL TIME VISIBILITY, GUARANTEED ON-TIME DELIVERY, PORT-TO-PORT DELIVERIES.

THERE’S NO CUT AND DRY SOLUTION FOR EVERY SHIPPER GIVEN THE COMPLEXITIES OF THE INDUSTRY. WHILE THERE ARE A VAST NUMBER OF FACTORS AND VARIABLES TO CONSIDER, BASING YOUR DECISION ON WHO TO PARTNER WITH BASED SOLELY ON A SINGLE FACTOR WHETHER IT’S PRICE OR SERVICE, COULD LEAD YOUR COMPANY DOWN THE ROAD TO RUIN.

CONSIDER THE SHAPE AND SCOPE OF YOUR BUSINESS AND WORK WITH THE ONE WHO BEST FITS YOUR NEEDS.

REQUESTDEMO

LEARN HOW XENETA CAN HELPYOU GET INSIGHT AND

INTELLIGENCE INTO YOUR GLOBAL OCEAN FREIGHT PRICES AND CHANGE YOUR LOGISTICS

BUSINESS:

REGISTERNOW

Q2 2016 FREIGHT SHIPPING PRICES AT A GLANCE

[LIVE WEBINAR - JULY 14TH]

SHIPPERS WITH A FULLY OUTSOURCED BUSINESS MODEL ARE NOT ONLY LOOSING CONTROL OF THEIR OWN SUPPLY CHAIN BUT ARE ALSO LEAVING MONEY ON THE TABLE WITH EVERY CONTAINER SHIPPED.