The Value of Diversifying Your Ocean Freight Carrier Network

As peak shipping season winds down and a new year rapidly approaches, the time for supply chain and logistics professionals to consider diversifying their ocean freight carrier network is now.

 

Carrier diversification provides strategic flexibility and resilience during times of volatility and disruption. It’s essential to take advantage of rate fluctuation opportunities that can lower your overall costs and increase on-time performance. Businesses looking to survive and thrive in the current global marketplace need the competitive edge that comes from having the right tools in place for a successful shipment.

 

By diversifying your ocean freight carrier network, you can gain visibility into data insights from multiple carriers, receive real-time updates, improve reliability, and ultimately optimize your shipping process.

 

We’ll cover several reasons you should begin diversifying your ocean freight carrier network, how you can start the diversification process, and the benefits you’ll begin seeing upon successfully implementing a diversification strategy. Let’s dive right in!

 

Reasons to Diversify Your Ocean Freight Carrier Network

Diversifying your ocean freight carrier network and the ocean freight companies you use is essential to keeping your supply chain running smoothly and cost-effectively.

 

When you diversify your carrier network, you create a more balanced approach in terms of pricing, service, and reliability. Furthermore, having multiple carriers to choose from allows you to negotiate better rates and have access to the best services available.

 

By implementing a diversification strategy, you’ll be able to increase flexibility and capacity, improve price competition, lower risks, manage contingencies, increase reliability, and optimize your carrier network to obtain recurring and higher-paying business.

 

The Lifeblood of Your Supply Chain is Diversification

Using a diverse range of ocean freight carriers for ocean freight shipping gives you a direct advantage in flexibility and scalability, and it’s no secret that different carriers have varied strengths and weaknesses in terms of pricing, service offerings, and delivery options.

 

With a well-diversified fleet of carriers, you can take advantage of the best possible option at any given time based on your current needs — giving you the agility to adjust your strategy as needed. Diversity helps protect you from relying too heavily on one carrier, which could cause unwanted supply chain disruptions. Diversification gives your business greater resilience and reduces risk.

 

Optimizing Your Ocean Freight Carrier Network Leads to Recurring Business and Higher Revenues

Optimizing your ocean freight carrier network is a surefire way to win higher-paying, recurring business and drive increased revenues. By finding the right partners — those who can provide the best services at competitive rates — you can open up more trade opportunities and expand into new markets. By strengthening existing relationships, you can ensure that you always have reliable shipping options.

 

Optimization starts by first understanding your needs and goals. Consider all aspects of each shipment, such as cost, transit time, and applicable surcharges. Once you’ve identified your requirements, create a transport strategy highlighting each route’s best paths. Analyze how cost and transit times compare between different carriers and lanes. Optimize the plan by selecting the right carrier and origin/destination pairs. Optimization helps reduce costs, improve services, and leverage existing relationships within the shipping community.

 

Increased Capacity and Flexibility

Are your shipping needs outgrowing the capacity of your current ocean freight carrier network? Diversifying your network is the perfect solution for increasing both capacity and flexibility. With multiple carriers in your corner, you can better manage your supply chain to ensure that you meet customer demands and stay ahead of the competition. Plus, having multiple carriers gives you access to different ports worldwide, allowing you to tap into new markets and explore more opportunities.

 

Improved Price Competition

Shipping can be a tricky business. Prices can vary from carrier to carrier, and it’s hard to know who will offer you the best deal.

 

Fortunately, having multiple carriers in the shipping market can help increase price competition - meaning better deals for you and your organization. You can negotiate better terms and lower prices with so many options available. After all, everyone wins when there’s more than one carrier vying for your business.

 

Why not get the most out of your shipping costs by taking advantage of the multiple carriers? Investing in price competition could be the key to keeping your shipping costs — and overall business costs — down while still getting the quality service you deserve.

 

Increased Reliability

When it comes to delivery, reliability is always crucial. That’s why, with multiple carriers at your disposal, you can have peace of mind knowing that you’re in good hands.

 

You’ll have the chance to work with tested and proven companies who understand the importance of delivering the goods on time and in great condition. No longer will delays or unexpected stoppages ruin your plans because a partnership increases your chances of success. With a secure network of reliable carriers, you can always count on your goods arriving safe, sound, and on time.

 

Lowers Your Risk

With ocean freight, there’s no room for error — you need your shipments to get where they need to be on time and in one piece.

 

You’re in trouble if you’re just using a single carrier and something goes wrong. Diversifying your network of carriers is key to reducing risk and protecting your bottom line; with multiple carriers at work, any potential losses or delays are spread out among them, giving you greater peace of mind. You’ll save money in the long run with fewer delays and fewer lost shipments.

 

Allows You to Manage Contingencies

You don’t want to be kept on the sidelines due to a contingency. This is precisely why multiple carriers are so important for a successful shipping process.

 

Multiple carriers enable you to manage the unexpected better and have options available in case one carrier fails to meet expectations. This is especially true during peak seasons and high-traffic areas — by having multiple carriers to turn to, you can quickly determine which company is best suited for the job, ensuring that your items arrive on time and as expected.

 

How to Diversify Your Ocean Freight Carrier Network

When it comes to ocean freight, the last thing you want to encounter is a supply chain disruption. A good mix of carriers means that if something happens — a ship gets delayed or its route changes — you won’t be stuck with only one option. You’ll have several options and can quickly switch between them as needed.

 

But how do you go about building such a network? Let’s explore the best practices for forming a diverse carrier network and find out how you can ensure your supply chain runs smoothly for years to come.

 

Some of the best ways you can begin diversifying your ocean freight carrier network as quickly as possible include the following:

• Research Different Ocean Freight Carriers – Take some time to research the best ocean freight carriers, perhaps by looking at a freight forwarder marketplace. Check out their rates, services, and customer service ratings to find the perfect fit for your shipping needs.

• Evaluate Your Current Network – Is your current carrier network up to the task? Take a look and ensure you don’t have any gaps in coverage or services.

• Consider Different Carriers for Specific Routes and Countries – Assign different carriers to specific routes and countries for the best possible results.

• Negotiate New Contracts for Specific Routes or Services – Take the time to negotiate new contracts that require optimization.

• Develop Relationships with New Carriers – To diversify, you’ll need to build relationships with new carriers. Start reaching out to carriers that may be a good fit for your enterprise.

• Stay Up-to-Date on Industry Resources – Reading the latest carrier news and developments can be an excellent way to look for diversification opportunities.

• Create a Review System to Update Your Carrier Network Regularly – Optimizing and diversifying your carrier network just once won’t cut it; you need a process for regularly performing a diversified review and optimizing your carrier network as required.

 

Maximize Your Supply Chain Value by Diversifying Your Ocean Freight Carriers With FreightMango

With the global freight industry constantly in flux, diversifying your ocean freight carrier network with top-of-the-line ocean freight services is an essential step in ensuring the success of your business. By collaborating with various carriers, you can better manage costs, reduce risk, and improve service levels - all while offering maximum flexibility to meet customer demand. By gaining access to additional capacity during peak seasons or tapping into vessels operated by carriers outside your current network, diversifying can deliver a host of advantages for your business.

 

By expanding to various suppliers and freight carriers, you unlock higher revenues and increased capacity and flexibility while ensuring increased reliability and lower risk in unanticipated contingencies. Utilizing multiple carriers also enhances your ability to participate actively in price competition - something that can significantly impact the bottom line of any shipping operation.

 

At the FreightMango digital freight marketplace, we understand the complexities of shipping and logistics and are committed to providing you with the best service available. With our extensive carrier network, online freight marketplace, competitive pricing, and unparalleled customer service, partnering with us may be one of the best decisions you can make for your business.

Contact the FreightMango team today to learn more about our extensive carrier network, freight shipping marketplace, and freight forwarding marketplace -- start shipping smarter in a more diversified manner today!