If you have ever had goods transported by road, rail, air, or sea, you know the importance of transparency in the entire process. Transparency affords you real-time information and visibility on the transportation and state of your product, making the entire process much more comfortable as a shipper or cargo owner.
For modern-day logistics and supply chain operations, transparency has quickly become one of the pillars of the process. One of the best strategies to ensure this in shipping is by choosing the direct carrier relationship route. Working directly with carriers cuts down the number of stakeholders involved in the process and enables quicker access to information. It is cheaper and more flexible, and you have fewer hurdles and paperwork to consider.
The Significance of Transparency in Shipping
Beyond real-time information, transparency allows all parties to have some control over the entire shipping process. Here are some reasons why that is very significant to the shippers and carriers.
Building Trust in the Supply Chain
The supply chain is already a complex process. Having all stakeholders (external or internal) completely on edge because of a lack of transparency can be stressful and is the perfect environment in which to breed distrust.
Conversely, it is remarkably easy to avoid the hassle of long meetings and constant hounding for updates or information by making the entire shipping process as transparent as possible. This is an environment that breeds trust and, in turn, ensures a seamless operation.
Mitigating Risks and Uncertainties
Transparency in the shipping process enables all parties involved to detect potential risks or uncertainties on time and gives them ample time to react to them. For instance, if there is a blockade or pirate activity, the shipment can be rerouted or paused until another solution becomes available.
In turn, the shipper can use the information to manage the supply chain to avoid or minimize potential downtimes or disruptions in the operation. This helps them save money and properly navigate the customer’s demands.
Building Financial Clarity
In volatile logistics and economic times, shippers also want rate transparency and longevity. This gives them an idea of what to expect and lets them properly plan their business and supply chain.
A current example is the Red Sea crisis. With geopolitical tensions, port congestion, and insecurity in the Middle East region, rates have become quite volatile.
While getting carriers to be transparent with their rates may not be possible as a single shipper, this problem can become easier to manage with a shipping association like Gemini. Shippers can plan their finances better and much more accurately. One of the ways the association can achieve this is by collective procurement.
Direct Carrier Relationship: Transparency Through Trust
Transparency and trust work hand in hand. In the shipping industry, you cannot have one without the other. As mentioned earlier, the direct carrier relationship is one of the best strategies to ensure both.
What is a Direct Carrier Relationship?
There are three major parties involved in the shipping process: the shipper, carrier, and broker (or third-party agents who bring the shipper and carrier together). But what if the middleman is left out of these? This is what is called a direct carrier relationship. It is when the shipper and the carrier deal directly without involving a middleman.
The traditional model involving brokers, freight forwarders, or NVOCCs isn’t all bad, especially because it took much of the responsibility of finding a good carrier out of the way. However, it led to less control, more money, and a more complex process.
With a direct carrier relationship, the opposite is the case. With the Gemini Shipping Association, you have access to a pool of vetted carriers that can get your job done. A direct carrier relationship simplifies the communication process and allows both parties access to each other’s data to ensure a seamless transaction.
How Direct Carrier Relationship Ensures Visibility on Both Ends: Origin and Destination
There are several benefits to using direct carrier relationships in terms of visibility, especially when you compare them to traditional models involving NVOCCs or freight forwarders. This visibility in the process benefits shippers and carriers, leading to smoother communication, improved efficiency, and greater trust.
Shippers and carriers invest in real-time tracking, direct communication, proactive problem-solving, and data ownership to ensure visibility on both ends. Carriers have an additional role to play here, though, and it entails proper resource allocation and understanding the shipper’s needs. Gemini helps solve this with allocation management and a digital platform for shipment visibility, both of which are included as part of their membership.
Direct Carrier Relationship is a Shipping Association’s Delight
The transportation process in 2024 is already stressful enough. Transparency can reduce that for you and other parties involved. One of the key strategies for achieving this is the direct carrier relationship.
At Gemini Shippers, we have a robust network of carriers, vetted and accessible to our members. Because of the organization’s purchasing power, you can negotiate favorable and stable prices with these carriers, ensuring your business has a solid level of financial stability.
There are so many benefits to becoming a member of the Gemini Shippers Association, including industry expertise, negotiating power, and access to timely and relevant information. There is no better time to get started. Join today for free.
