Procurement of ocean shipping services is the activity of sourcing and procuring not only the best ocean freight rates, but also the best shipping services from among the various carriers available in the market in line with the requirement of yours and your customers’ businesses.

1. 4 Tips on How to Overcome
Challenges Related to
Procurement of Ocean
Shipping Services

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5. Procurement of ocean shipping
services is the activity of
sourcing and procuring not only
the best ocean freight rates, but
also the best shipping services
from among the various
carriers available in the market
in line with the requirement of
yours and your customers’
businesses.

6. Some of the challenges
procuring ocean shipping
services are:

7. Hidden costs
Choice of carrier
Capability analysis
Service reliability
After sales service

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9. Here are four tips on how to
overcome challenges related to
procurement of ocean shipping
services:

10. 1. Weigh your options

11. In the case of procurement of ocean
shipping services, having options
means everything. By options, we
suggest choosing the right carrier
which is capable of not only offering
but also providing the right service at
the right price for your shipments.

12. There are several carriers that may be able to offer cheaper rates
than you as a customer need. Remember though, not everything
is or should be about rates.
Rates without service reliability or space guarantee could end up
meaning nothing to you and your customers.
Apart from issues with rates, one of the main challenges that
shippers face as part of procuring ocean shipping services is
unraveling the various costs involved in a freight shipment.

13. It is important that you discover the
secret to understanding sea freight
rates and learn how a sea freight
invoice works.

14. 2. Choose Wisely

15. The proliferation of container shipping
alliances in the market has its pluses
and minuses for customers. If you are a
global BCO or Freight Forwarder/
NVOCC, the chances are that you will
be shipping with two or more of the
global carriers which means you work
with one or all of the alliances.

16. As a customer, you have the option to pick and choose the best
carrier with the best service that you would like to work with. If
chosen carefully, you can end up working with the best carriers
from each of the four alliances in the game right now.
On the flip side, if you choose one or more of the carriers from
within the same alliance, you may be exposed to some common
problems.
So, choose carriers wisely and spread your shipments as best as
possible.

17. 3. Consolidate and Gain

18. Survival of the fittest is something that
applies very much to the shipping
industry as well. One of the ways you
can be the fittest is through
consolidating your volumes.

19. Shippers with bigger volumes naturally enjoy some more benefits
than those who don’t have such volumes.
Not just in terms of being able to negotiate better rates, your
consolidated volumes may enable you to demand more attention
and better service from the carriers as well.
This also means that you can negotiate a longer validity with the
carriers. It will help you avoid or at least manage market volatility
and freight rate fluctuations during your shipment period.

20. If you have a large volume but unable
to consolidate or don’t know how to,
here are some tips on how to
consolidate your volumes. But if you
don’t have big volumes in order to
consolidate it is not the end of the
world, you can still

21. 4. Go Digital

22. Customers are increasingly turning to
online freight marketplaces. E-sourcing
tools, real-time track and trace and
freight benchmarking services allows
them to

23. Develop a digital procurement strategy that will benefit them in
the long run
Achieve visibility in terms of shipment tracking so they can take
alternate steps in case of any delays (like using air freight to
supplement goods that may not reach the assembly line in time
Create metrics for measurement of the service offers

24. Analyze the service proposals and how it fits into their
requirements
Access contract rates on a real-time basis for the various modes
of transport and service types
Achieve visibility and transparency in terms of freight charges,
surcharges, etc. to avoid any hidden costs
Avoid any invoicing errors

25. Conclusion

26. Procurement of ocean shipping services relates to freight rates
and services which play a vital role in the whole supply chain.
Companies that have set structures, automated tools and
practices for such procurement will be able to assess their
options, adjust their priorities and respond suitably to the
ever-changing needs of this dynamic market.
An excellent ocean shipping service is one that is sustainable in
the long run for both the carrier and the customer in the interest
of maintaining their relationship and business.