[SURVEY SAYS] WHO DO YOU HAVE YOUR OCEAN FREIGHT

CONTRACTS WITH?

JOIN THE CONVERSATION ON TWITTER

@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.

OCEAN FREIGHT NEGOTIATIONS ARE A SOURCE OF CONSTANT TUSSLE BETWEEN SHIPPERS AND THEIR SERVICE PROVIDERS. THIS IS ESPECIALLY TRUE, POST 2008 WHERE THE FREIGHT RATES HAVE BEEN ON A ROLLER COASTER RIDE MAKING IT VERY DIFFICULT TO WORK WITH FIXED SHIPPING COSTS.

THE VOLATILITY OF THE OCEAN FREIGHT RATES MAY ALSO DEPEND ON “WHO” THE SHIPPER HAS ENTERED INTO AN OCEAN

FREIGHT CONTRACT WITH.

WE ASKED OUR SOCIAL MEDIA COMMUNITY WHO THEY HAVE

THEIR OCEAN FREIGHT CONTRACTS WITH.

OUR SURVEY REVEALED THAT 33% OF SHIPPERS HAVE OCEAN FREIGHT

CONTRACTS WITH A CARRIER DIRECTLY AND A COLLECTIVE 33% (25% WITH FREIGHT FORWARDER

AND 8% WITH NVOCC) HAD OCEAN FREIGHT CONTRACTS WITH AN OTI AND 34% HAD AN OCEAN FREIGHT

CONTRACT WITH A MIXTURE OF THE ABOVE.

DEFINITIONS

A CARRIER MAYBE DEFINED AS AN ENTITY WHO UNDERTAKES TO PERFORM, DIRECTLY OR INDIRECTLY THE CARRIAGE OF CARGO BY SEA, RAIL, ROAD, AIR, INLAND WATERWAY OR A COMBINATION OF THESE MODES, NORMALLY UNDER A CONTRACT OF CARRIAGE.

CARRRIER

A FREIGHT FORWARDER IS SOMEONE WHO UNDERTAKES TO HANDLE THE MOVEMENT OF GOODS FROM POINT TO POINT ON BEHALF OF THE CARGO OWNER AND ASSISTS A CUSTOMER USING THEIR EXPERIENCE OF GLOBAL AND LOCAL TRANSPORTATION, GLOBAL AND LOCAL INFRASTRUCTURE AND FREIGHT DOCUMENTARY REQUIREMENTS.

FREIGHT FORWARDER

A NVOCC, AN ABBREVIATION FOR NON-VESSEL OPERATING COMMON CARRIER, IS AN ENTITY WHOSE FUNCTIONAL ACTIVITIES OVERLAP THAT OF A FREIGHT FORWARDER IN SOME CASES AND A CARRIER IN SOME CASES, HENCE MAY BE DEFINED AS A “CARRIER TO SHIPPERS” AND “SHIPPER TO CARRIERS”.

NVOCC

DEFINITIONS

AN OTI IS A COLLECTIVE TERM FOR A FREIGHT FORWARDER AND NVOCC WHO WHILE PROVIDING THEIR INDIVIDUAL SERVICES TO THE CLIENTS, ARE ULTIMATELY DEPENDENT ON THE CARRIER FOR THE MOVEMENT OF THEIR CARGO.

OTI

NO ONE-SIZE-FITS-ALL

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 AND

MORE.

SHIPPING LINES NEEDED TO IMITATE FREIGHT FORWARDERS AND OFFER A GREATER RANGE OF SERVICES, AS

WELL AS DIFFERENTIATE THEIR OFFERING FROM COMPETITORS.

ROLF NIESE, UNTIL RECENTLY HEAD OF LOGISTICS OPERATIONS AT BRITISH

AMERICAN TOBACCO

EACH FREIGHT BUSINESS AND SHIPMENT IS DIFFERENT AND THERE IS NO FIXED FORMULA OR A ONE-SIZE-FITS ALL SOLUTION FOR OCEAN FREIGHT CONTRACT NEGOTIATION.

THEREFORE, IN THEIR OWN INTEREST, IT WOULD BE PRUDENT FOR SHIPPERS TO LOOK AT WHICH SOLUTION FITS THEM BEST, WHETHER IT IS A DIRECT CONTRACT WITH A CARRIER OR A CONTRACT WITH AN OTI OR A MIXTURE OF BOTH WITHIN THEIR VARIOUS BUSINESSES.

GET BETTER VISIBLITY INTO YOUR OCEAN FREIGHT RATES

WATCHOUR WEBINAR

LEARN HOW XENETA CAN HELPYOU GET INSIGHT AND

INTELLIGENCE INTO YOUR GLOBAL OCEAN FREIGHT PRICES AND CHANGE YOUR LOGISTICS

BUSINESS:

REQUEST DEMO NOW

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 AND

MORE.