In today’s global shipping environment, volatility has become the norm. Rate swings, capacity constraints, blank sailings, regulatory changes, and geopolitical uncertainty continue to challenge retailers and suppliers of all sizes. For many small and mid-sized importers, navigating these pressures alone makes long-term planning difficult and growth harder to sustain.
This reality has renewed interest in procurement structures designed to reduce exposure rather than amplify it. One such approach is the aggregated freight procurement model, recently highlighted in a Retail Today Executive Roundtable featuring Ken O’Brien, President & CEO of Gemini Shippers Association.
As discussed in the roundtable, aggregation is not simply about chasing lower rates. It is about creating stability in an otherwise unpredictable market.
The Misconception: Aggregation Is Only About Cost
One of the most common misconceptions about shippers associations is that it is purely a cost-saving measure. While competitive rates are important, focusing only on price overlooks the broader value aggregation delivers.
The ability to know ocean freight costs year-round through negotiated long-term rates plays a critical role in building a steady and reliable supply chain. Predictability improves budgeting, supports cost analysis, and allows businesses to plan with confidence rather than react under pressure.
In volatile markets, certainty often matters as much as savings.
Why Individual Negotiations Leave Smaller Shippers Exposed
When importers negotiate on their own, outcomes are heavily influenced by shipment volume and timing. Smaller shippers frequently face:
- Limited leverage during carrier negotiations
- Inconsistent access to space and equipment
- Exposure to sudden spot market spikes
- Difficulty forecasting transportation costs
Ken O’Brien noted in Retail Today that in periods of disruption, these challenges can quickly disrupt inventory planning, margins, and customer commitments. Without scale or diversification, individual shippers absorb the full impact of market shifts.
How The Aggregated Freight Procurement Model Helps
An aggregated freight procurement model brings together the volumes of multiple importers into a shared, diversified program. By pooling demand, risk is spread across a broader base, reducing volatility at the individual shipper level.
This approach typically results in:
- Negotiated long-term ocean freight rates
- More consistent carrier allocation and service
- Improved capacity access during peak periods
- Reduced exposure to short-term market swings
Carriers also benefit from predictable, diversified volume commitments, which supports better planning and more consistent service outcomes for members.
What This Means For Your Business
For small and mid-sized importers, aggregation creates a level playing field. Instead of competing against larger shippers for attention and capacity, members participate in a collective procurement structure designed to support stability.
From a practical standpoint, this means:
- Clear visibility into freight costs throughout the year
- More accurate budgeting and margin analysis
- Fewer last-minute adjustments during disruptions
- Greater confidence when planning inventory and growth
Rather than reacting to volatility, businesses can focus on operating efficiently and scaling strategically.
Stability As A Competitive Advantage
Aggregation is not about eliminating disruption. It is about reducing its impact and giving retailers the tools to plan through it.
By participating in an aggregated freight procurement model, Gemini members gain more than pricing leverage. They gain consistency, advocacy, and hands-on support built around the shared needs of the community. Over time, this stability becomes a competitive advantage that supports stronger supplier relationships and more resilient supply chains.
Connect With a Community of Importers for Long-Term Confidence
For nearly 100 years, Gemini Shippers Association has helped importers and exporters of all sizes navigate an increasingly complex logistics environment. As a not-for-profit organization, Gemini exists to serve its members first by leveraging collective volume to negotiate flexible, stable, and competitive ocean freight rates with top-tier carriers. But the value does not stop at rate. Members gain year-round cost visibility, industry adaptability across a wide range of commodities, and practical tools that streamline the process from quote to cargo arrival.
If your business is looking for predictability instead of volatility, transparency instead of guesswork, and a trusted partner instead of going it alone, an aggregated freight procurement model may be the next step forward. Join a community built on strength in numbers, long-term relationships, and hands-on support designed to help your supply chain operate with confidence today and into the future.
