A freight association can give enormous benefits to the buyers as well as the sellers. The concept of an association has survived for hundreds of years as people understood their utility to the core. It’s so crucial that it can even regulate the economy of the world market.
Freight forwarders are always under the stress of delivering the shipments safely and quickly. And that too, at a relatively lower rate! The shipper, as well as the forwarder, gets many advantages by being attached to a freight association. They will not realize until and unless they become a part of one. This article discusses some of the benefits that one can have by joining a shipping association.
Probably it is the biggest advantage of being a member of a freight organization. They can act as a purchasing cooperative as they buy in bulk. That gives them a volume discount. So, an ocean liner can encourage large consignments from several small shippers with very little to no effort.
Stabilization of rates
Since the shippers and the carriers work together, it helps in stabilizing the market rate. Commodity-based agreements (like chemicals, footwear, wines, and spirits) are usually used to standardize the rates. It rules out the need to negotiate at varying levels that can lead to rate instability. Such leads to the formation of an environment of trust.
The flexibility of using the resources
A shipping line may not cover all sea routes or may lack carriers to transport a bulk shipment. In such cases, it can share the resources of other shipping lines of the same association. To experience the benefits of freight association, you should immediately join one.
Managing tasks become easier
International shipping includes elaborate processes. Taking care of each of them is hazardous if you work alone. But the same tasks become easier when you become a part of an organization. They have the experience and the expertise to deal with such jobs.
Rules and regulations
A well-reputed shipper’s association will work in compliance with the rules and regulations of the government. So, shippers and carriers can operate safely and with ease as they feel protected from the liabilities of fines and penalties.
Sharing market intelligence
When you work alongside other shippers and buyers, you become aware of the market nitty-gritty. The members of an association get to know the global perspective and utilize them as and when needed. This shared market intelligence will help you to grow your business rapidly.
For the development of your business, first, you have to build a chain of networks that will aid you to grow internationally. Joining a shipper’s association will allow you to get to know other members and build a network.
Access to value-added services
The shipping industry is constantly on the lookout to add some valuable services for their members. Some of them are blacklist warning services, INO Global Protection services, etc.
Sharing a common mentality
Working together helps in growing a common mentality. When such businesspersons join hands to accomplish a task can bring greater good to the industry.
If you are still not a member of a freight association, it’s high time you become one.