HOW CAN SMALLER CARRIERS COMPETE AGAINST SHIPPING

ALLIANCES?

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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

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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

DOWNLOADFREE 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.

RELATEDINFO:

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

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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.

LEARN HOW XENETA CAN HELPYOU 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.