How to Get the Lowest Rates from Shipping Lines: A Comprehensive Guide

In the world of international trade, securing the lowest rates from shipping lines is a critical step in optimizing your import and export operations. Traditional methods involve painstaking manual comparisons and waiting for various quotes, a process that can often take weeks. However, leveraging technology through software solutions can significantly streamline this process. In this guide, we will explore the nuances of negotiating shipping rates and underscore the benefits of using Shipsys Shipment Management Software for efficient and cost-effective logistics.

The Traditional Process of Getting Shipping Rates

To get the lowest rates for imports and exports, you usually need to reach out to multiple shipping lines, send them relevant import-export details, and wait for their quotes. This process, while thorough, can be time-consuming and requires a significant amount of administrative work. It often involves manual comparisons of different offers, which can be tedious and prone to errors.

The Solution: Shipsys Shipment Management Software

The best solution to streamline this process and gain instant access to competitive quotes is to use Shipsys Shipment Management Software. This software provides a user-friendly dashboard that allows you to enter your import and export-related requirements and instantly receive quotes from trusted shipping lines and freight forwarders.

With Shipsys, you can:

Save time and boost efficiency in getting shipping quotes. Compare prices instantly, making informed decisions faster. Reduce the administrative burden and focus on core business operations.

Negotiating Ocean Freight Rates: The Role of Volume

When it comes to negotiating ocean freight rates, volume is a key factor. Direct carrier contracts offer potential discounts, but these are usually reserved for high-volume shippers. According to industry standards, you should be shipping at least 1000 Twenty-Foot Equivalent Units (TEU) annually to qualify for volume discounts. This is based on several reasons:

The carrier is less likely to provide you with a discount if you are shipping minimal volumes. Smaller shipments may not give you leverage to negotiate favorable terms and conditions. Small shipments may end up on the shortlist for rolled cargo when the ship is overbooked.

Opting for a 3PL Freight Forwarder or NVOCC

For shippers who are unable to meet the minimum volume threshold, working with a 3PL Freight Forwarder (Third-Party Logistics) or a Non-Vessel Operating Common Carrier (NVOCC) can be a strategic solution. Here’s why:

Increased Negotiating Power: NVOCCs and 3PLs have established relationships with shipping lines, giving them more leverage to negotiate better rates on your behalf. By consolidating smaller shipments, these companies can increase their overall volumes, making them more valuable to shipping lines.

Positive Industry Relationships: The freight forwarding company already has a positive relationship with the carrier running the shipping lane you need. This can result in more favorable terms and conditions.

Cost-Effectiveness: NVOCCs and 3PLs can offer cost-effective solutions by aggregating shipments and negotiating better rates for all their clients, not just individual ones.

Why Shipsys is the Ideal Solution

By using Shipsys Shipment Management Software, you can achieve the best of both worlds: immediate quotes and the flexibility to work with NVOCCs and 3PLs. Shipsys integrates seamlessly with these partners, allowing you to compare prices and contact preferred shipping lines instantly. This ensures that you stay competitive and benefit from the best rates available.

Whether you’re a high-volume shipper or a small business, Shipsys is the ultimate tool for managing your import and export logistics efficiently and reducing your shipping costs.