dont' do these 5 things when negotiating ocean freight rates

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DON'T DO THESE 5 THINGS WHEN NEGOTIATING OCEAN FREIGHT RATES

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DON'T DO THESE 5 THINGS WHEN NEGOTIATING

OCEAN FREIGHT RATES

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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.

GETTING A GRIP ON THE ART OF NEGOTIATING YOUR OCEAN FREIGHT RATES IS SO IMPORTANT. THE BEST WAY TO OFFER ADVICE IS TO FOCUS ON WHAT NOT TO DO.

SHIPPING IS NOT A BUSINESS ENVIRONMENT WHERE YOU POUND YOUR FIST UNTIL YOU GET THE PRICE YOU WANT.

LET’S FACE IT:

DROP THE BOXING GLOVES

TRUE, PRICING IS NEGOTIABLE, BUT HOW YOUR COMPANY APPROACHES CARRIER NEGOTIATIONS MAY MAKE A GREAT DIFFERENCE TO YOUR BOTTOM LINE

ANOTHER REASON TO TRADE IN THE BOXING GLOVES FOR KID GLOVES IS THAT GOING CHEAP IS NOT ALWAYS VERY SMART.

ARE YOU PAYING THE RIGHT CONTAINER

FREIGHT RATES?

DISCOVER SAVINGS POTENTIAL IN REAL

TIME.

DON’T FORGET SOMEFUNDAMENTAL HOMEWORK

DUE TO AN ABYSMALLY WEAK ENERGY MARKET, RAILWAY OPERATORS IN BOTH CANADA AND THE U.S. ARE TAKING A MAJOR HIT FROM THE DROPPING DEMAND FOR COAL, CRUDE OIL,AND FRACKING SAND.

WHILE FUEL ISN’T AS BIG A FACTOR FOR RAILWAY COSTS, IT DOES MAKE UP APPROXIMATELY 20 PERCENT OF TOTAL OPERATING COSTS, AND CONSTITUTES A MAJOR LINE ITEM FOR RAIL COMPANIES

DON’T IGNORE THE CHANGING TIDES ON

YOUR FREIGHT-RATE VOYAGE

PEAK SEASONS YIELD HIGHER PRICE ESTIMATES. DEPENDING ON THE NATURE OF YOUR GOODS, THERE ARE SLOW AND HEAVIER SEASONS AND PRICES REFLECT SUPPLY AND DEMAND.

MARKETPLACE QUALITY VERSUS COST-SAVINGS AND THAT IS WHERE YOU NEED TO EXAMINE YOUR OWN PRIORITIES.

SOME COMPANIES WILL QUOTE HIGHER BUT ASK YOURSELF TWO QUESTIONS: IS THE SERVICE,BEYOND THE RATES, UNIQUELY HIGH? ARE THEY FASTER THAN THE COMPETITION? DO QUALITY AND SPEED FOR YOUR LINE OF BUSINESS MATTER MORE THAN VARIATIONS IN PRICE?

TRUE, PRICING IS NEGOTIABLE, BUT HOW YOUR COMPANY APPROACHES CARRIER NEGOTIATIONS MAY MAKE A GREAT DIFFERENCE TO YOUR BOTTOM LINE

PEAK SEASONS YIELD HIGHER PRICE ESTIMATES. DEPENDING ON THE NATURE OF YOUR GOODS, THERE ARE SLOW AND HEAVIER SEASONS AND PRICES REFLECT SUPPLY AND DEMAND.

MARKETPLACE QUALITY VERSUS COST-SAVINGS AND THAT IS WHERE YOU NEED TO EXAMINE YOUR OWN PRIORITIES.

SOME COMPANIES WILL QUOTE HIGHER BUT ASK YOURSELF TWO QUESTIONS: IS THE SERVICE,BEYOND THE RATES, UNIQUELY HIGH? ARE THEY FASTER THAN THE COMPETITION? DO QUALITY AND SPEED FOR YOUR LINE OF BUSINESS MATTER MORE THAN VARIATIONS IN PRICE?

WHILE FUEL ISN’T AS BIG A FACTOR FOR RAILWAY COSTS, IT DOES MAKE UP APPROXIMATELY 20 PERCENT OFTOTAL OPERATING COSTS, AND CONSTITUTES A MAJOR LINE ITEM FOR RAIL COMPANIES

DON’T MAKE AMENDS

ANY TWEAKS TO YOUR SEA FREIGHT BILL OF LADING MIGHT INVITE A REAL HEADACHE FOR YOUR COMPANY.

DUE TO AN ABYSMALLY WEAK ENERGY MARKET, RAILWAY OPERATORS IN BOTH CANADA AND THE U.S. ARE TAKING A MAJOR HIT FROM THE DROPPING DEMAND FOR COAL, CRUDE OIL,AND FRACKING SAND.

DON’T BE TOO PROUD TO ASK FOR OUTSIDE HELP

IF YOU NEED IT.

CHOOSING A RELIABLE THIRD PARTY WITH SOPHISTICATED SOFTWARE TOOLS CAN OPEN YOUR DOOR TOWARD SELECTING THE FREIGHT RATES AND SERVICES THAT WILL MORE THAN COMPENSATE FOR YOUR HAVING MADE THE INVESTMENT IN OUTSIDE ASSISTANCE.

CHOOSING A RELIABLE THIRD PARTY WITH SOPHISTICATED SOFTWARE TOOLS CAN OPEN YOUR DOOR TOWARD SELECTING THE FREIGHT RATES AND SERVICES THAT WILL MORE THAN COMPENSATE FOR YOUR HAVING MADE THE INVESTMENT IN OUTSIDE ASSISTANCE.

LEARN HOW XENETA CAN HELPYOU GET INSIGHT AND

INTELLIGENCE INTO YOUR GLOBAL OCEAN FREIGHT PRICES AND CHANGE YOUR LOGISTICS

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