HOW CAN SMALLER CARRIERS
COMPETE AGAINST SHIPPING
ALLIANCES?

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XENETA
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
WE ARE
TRANSFORMING
GLOBAL
LOGISTICS

ARE YOU PAYING THE
RIGHT CONTAINER
FREIGHT RATES?
DISCOVER SAVINGS
POTENTIAL IN REAL
TIME.
CONTACT US.

IN THE CURRENT ECONOMIC
CONDITIONS, THERE AREN'T
MANY SHIPPING LINES
THAT CAN OPERATE
ENTIRELY ON THEIR OWN;
AT LEAST NOT ON A GLOBAL
BASIS, AS THEY CANNOT
PROVIDE THE REQUIRED
COVERAGE ALL BY
THEMSELVES.

WE HAVE SURVEYED OUR SOCIAL
MEDIA COMMUNITY AND ASKED,
"HOW CAN SMALLER CARRIERS
COMPETE AGAINST SHIPPING
ALLIANCES?"

APRIL 1, 2017 WILL SEE THE LAUNCH OF THREE ALLIANCES:
2M, OCEAN ALLIANCE AND THE ALLIANCE WHICH WILL
CONTROL THE MAJORITY OF TRADE ON THE TRANS-PACIFIC
AND A MAJOR PART OF ASIA-EUROPE.
A SMALL CHUNK OF THIS IS LEFT FOR THE SMALLER
CARRIERS. SO, HOW CAN THE DAVIDS COMPETE AGAINST THE
GOLIATHS OF THE INDUSTRY?

OUR COMMUNITY FELT THAT THE
SMALLER LINERS CAN
DIFFERENTIATE WITH SPECIALIZED
SERVICE AND JUST BEING NICER
THAN THE BEHEMOTHS.

SURVERY RESULSTS

GUIDE TO OCEAN FREIGHT PRICING
TRANSPARENCY
DOWNLOAD
FREE WEBINAR

DON’T BE BLINDSIDED

THERE ARE A FEW ADVANTAGES THAT
SMALLER LINES HAVE OVER THE
BIGGER LINES AND THESE ADVANTAGES
COULD BE THE MAIN DIFFERENTIATING
FACTORS IN A SERVICE INDUSTRY LIKE
SHIPPING.

SPECIALIZED OR NICHE SERVICE
ENHANCED CUSTOMER SERVICE
SIZE
NIMBLENESS

SMALLER LINES ARE ABLE
TO PROVIDE SPECIALIZED
AND PERSONAL SERVICES
TAILOR MADE FOR THE
CLIENT WHEREAS AN
ALLIANCE WORKS ON THE
BASIS OF JOPS (JOINT
OPERATING PROCEDURES)
OR JWPS (JOINT
WORKING PROCEDURES)
WHICH IS DIFFICULT TO
CIRCUMVENT AND ARE
DIFFICULT TO CHANGE
WITHOUT THE ALLIANCE
PARTNERS JUMPING
THROUGH HOOPS OR
MAKING THE CUSTOMER
JUMP THROUGH HOOPS.

SPECIALIZED SERVICES
IN SHIPPING COULD
MEAN A NICHE TRADE
ROUTE THAT THE
BIGGER LINES,
ESPECIALLY THOSE IN
AN ALLIANCE, DO NOT
AND CANNOT OFFER
PROBABLY DUE TO LACK
OF SUFFICIENT VOLUME,
VESSEL BEING TOO BIG
FOR THE NICHE PORT.

THESE SPECIALIZED SERVICES MAY WORK VERY WELL IN FAVOR
OF THE SMALLER LINES. THE LOCAL KNOWLEDGE AND
INFORMATION THAT THEY HAVE COMPARED TO A GLOBAL LINE
MAKES A MAJOR DIFFERENCE TO MANY CUSTOMERS.
SMALLER LINES SEEM TO HAVE THAT PERSONAL
COMMITMENT, FLEXIBILITY AND SOFT APPROACH TO THEIR
CUSTOMER’S BUSINESS.
THERE ARE MANY SMALLER SHIPPING LINES ALL AROUND THE
WORLD LIKE WAN HAI LINES THAT HAVE SURVIVED FOR MANY
YEARS, DOWN TURNS, AND GROWN IN SPITE OF THE THREAT
AND PRESENCE OF BIGGER LINES AND ALLIANCES.

LINES LIKE THESE THRIVE ON
TAKING ON ACTIVITIES, ROUTES
AND SERVICES THAT AN ALLIANCE
ISN’T GOOD AT. THEY DO THIS BY
NURTURING A CLOSE PERSONAL
CONNECTION BETWEEN THEIR
SALES AND OPERATIONS TEAMS
AND THE CLIENT.

RELATED
INFO:
[WHITEPAPER] CHECK OUT
HOW ELECTROLUX, SHIPPING
180K TEUS, BENCHMARKS
THEIR OCEAN FREIGHT SPEND
AND GAINS FULL
TRANSPARENCY INTO THEIR
OCEAN FREIGHT SUPPLY
DOWLOAD

LEARN HOW XENETA CAN HELP
YOU GET INSIGHT INTO YOUR
GLOBAL OCEAN FREIGHT PRICES.
REQUEST
DEMO NOW

SMALL WITH TECHNOLOGY

IN TERMS OF THE BIGGER
SHIPPING LINES, TOO MUCH OF
CUSTOMER SERVICE HAS
DEVOLVED INTO A LACK OF HUMAN
TOUCH WITH BLIND FOCUS ON
TECHNOLOGY AND SCRIPTED
ANSWERS DELIVERED WITH AN
ARTIFICIAL GRACE.

SMALLER LINES WOULD BE SILLY
NOT TO TAKE THE ADVANTAGE OF
BEING SMALL AND COUPLING WITH
TECHNOLOGY PLATFORMS TO
BETTER HELP WITH EFFICIENCY
AND PRODUCTIVITY.

CONCLUSION

TECHNOLOGY, FINANCIAL STAMINA,
AND LOW RATES MAY NOT BE
SOMETHING THAT THE SMALLER
LINES CAN COMPETE WITH AGAINST
THE MIGHT OF THESE SHIPPING
ALLIANCES, BUT SERVICE LEVELS
AND A PERSONALIZED TOUCH IS
SOMETHING THAT CAN SURELY
CHANGE THE TIDE IN THEIR FAVOR.