HomeBusiness PointTop Reasons to Become...

Top Reasons to Become a Member of a Shippers Association 

International trade is fiercely competitive, with businesses from all over the globe trying to leverage whatever advantage they can get in sourcing, manufacturing, distribution, and marketing. The role of logistics and supply chain management is no less critical. With over 90% of global trade comprising ocean freight, the role of shipping companies and freight services are vital for business competitiveness. Like in other aspects of trade and commerce, many shipping companies have discovered the benefits of coming together under a common umbrella of a trade Shippers. Some of the main advantages of a Shippers Association are explained:

Negotiating Power

Perhaps the most significant benefit of a Shippers Association is that it gets a lot of strength and negotiating power with the support of many members. The shipping association can act like a cooperative to consolidate and buy cargo space in bulk to avail of handsome discounts that can benefit the members. In this manner, even small and medium-sized shippers can get trade discounts of a magnitude that would not have been possible on their own, according to export.gov. Ocean carriers also gain as they secure agreements for large volume shipments that make it possible to keep investing in their assets and operations.

Stable Rates

With shipping companies and associations having a lot of clout on the demand and supply of shipping volumes, it acts as a natural check on the shipping companies from arbitrarily hiking rates. With long-term agreements coming into play between the ocean freight carriers and freight forwarders, the playing field becomes leveler, and the rates remain stable. Also, multiple contracts for commodities like chemicals, foodstuffs, etc., serve as the basis for standardizing rates. The membership freight forwarder facility is also helpful because it eliminates the need for time-consuming negotiations every time a business wants to ship something and prevents shoppers from taking advantage of small businesses. Stable rates help companies plan better and remove the opportunity for confusion or disagreement between carriers and shippers.

Centralized Resources

There are quite a few tasks, including recordkeeping of shipping contracts, filing tariffs, executing changes in the rate contracts, legal issues, liner charges, taxation, and advocacy involved in shipping. These require more time and expertise than what individual shippers can commit. With the Shippers Association mandated to look into all aspects and look after the best interest of its members, it is more convenient and economical for shippers.

Better Compliance with Rules and Regulations

A shippers’ association is better poised to ensure that its members operate according to industry standards and government rules and regulations. With the association’s involvement, individual shippers can be more confident of being fully compliant with the applicable rules and regulations. They can be surer that they will not attract fines and penalties as may be applicable. Also, most associations will offer training and guidance on compliance-related issues.


Above everything else, a shippers’ association offers its members the opportunity of networking with each other. It can open up diverse business opportunities and preferential pricing and sharing of resources.

Check out: Top 8 Internet Safety Rules That You Should Adopt

Most Popular

More Articles

Survive The Mobile Payment Market With P2P Payment Apps

When it comes to functionality and productivity, the digital revolution has...

How Can Traditional Businesses Use Smart Contracts?

Smart contracts are the digital counterparts of traditional contracts. They are...

3 of The Best AI Logo Makers Reviewed

Every business can benefit from AI Logo Makers. No big company...

Read Now

13 Most in-demand freelance skills To Learn

Work is undergoing a metamorphosis not witnessed since the Industrial Revolution due to technological advancements and lifestyle changes. A generation ago, an average employee could find a job with a large corporation right out of college and reasonably expect to remain there for the duration of their...

Commercial Cleaning Services: Everything You Need To Know

Getting a clean workplace is our top priority. We all need a clean and tidy environment to work in. And doing that won't be a problem when we have good professional cleaners. Who can keep our place clean? You will keep the business in running condition. They...

Online Receipt Generation Software for Small Businesses

Getting late in issuing payment receipts directly affects your professional reputation. You have worked hard to earn the trust and build a reputation by matching the client's quality expectations. Will you let it all go because of a delay in receipt generation?Not at all, right? Thus, you need...