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Independent Shipping Services Overview

The document discusses different types of liner shipping services: independent services, conferences, and alliances. Independent services are operated solely by a single liner company, allowing flexibility but limiting bargaining power and increasing costs due to lack of resource sharing. Conference systems involve groups of lines cooperating on routes through agreements, providing regular sailings but risking excessive rates and lack of competition. Alliance systems represent strategic cooperation among global carriers to jointly serve routes, providing benefits like rationalized rates and improved service quality through shared resources while maintaining corporate identities.

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8140 SUMAN CHOUDHARY
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135 views4 pages

Independent Shipping Services Overview

The document discusses different types of liner shipping services: independent services, conferences, and alliances. Independent services are operated solely by a single liner company, allowing flexibility but limiting bargaining power and increasing costs due to lack of resource sharing. Conference systems involve groups of lines cooperating on routes through agreements, providing regular sailings but risking excessive rates and lack of competition. Alliance systems represent strategic cooperation among global carriers to jointly serve routes, providing benefits like rationalized rates and improved service quality through shared resources while maintaining corporate identities.

Uploaded by

8140 SUMAN CHOUDHARY
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Independent services’

Independent service provider is a one who does


not get into any arrangements of consortium or
alliance with other shipping line operators. He will
be operating in a trade route having all necessary
ingredients of a liner service.
The service operated by a single liner shipping
company in a particular trade route, competing
with other liners or consortia operating in the same
trade route is called as Independent Service
ADVANTAGES
 As an independent service provider he would be in
a position to establish his brand name and build up a
better image with the customers. The identity of the
service provider will be made well known in the
market.
 As an independent operator, based on the
commercial viability, he can have more flexible
sailing schedules.

DISADVANTAGES
 No collective bargaining for berthing, port /
terminal tariff etc., would be available to an
Independent Operator, unless he is holding a major
share of the market.
 No sharing of resources would be possible, which
increases the operational cost.
THE CONFERENCE SYSTEM
Liner Conferences are groups or associations of
ship owners, which agree to combine their
operations on a given trade route, on conditions
agreed by the members of the route
ADVANTAGES OF THE CONFERENCE
SYSTEM
 The greater regularity of sailings. Since there are
many members in the conference, each one may be
interested to place their ship in trade. The more ships
put in the particular trade by the members will offer
more sailing opportunity.
 The ability to forecast and provide for future trade
 No competition for customers as member lines did
not generally carry cargo for their own account.
THE DISADVANTAGE OF THE CONFERENCE
SYSTEM
 The possibility of charging excessive rates, thus
giving excessive profits. Once all the members of the
conference are together taking a decision to hike up
the rates, they can implement the same.
 The lack of the need to compete causing
indifference to the need to care for the cargo
 The arbitrary nature of the settlement of claims
Alliance type liner

It represents a type of cooperative agreement


among ocean carriers that serves as a strategic
alliance to cover different trade routes thanks to
the cooperation of various members on a global
scale.

In other words, a shipping alliance is a group of


shippers who have aligned together for common
goals in a way that benefits everyone, not just the
carriers themselves, but also the customers by
obtaining better rates, routes, and transit times for
their shipments.

ADVANTAGES OF ALLIANCE
 Rationalization of freight rates amongst consortia
members. Irrespective of the number of members,
every one will have to follow same rate.
 Container shipping services & operations by
sharing all resources
 Improvement in the quality of service
 Better sailing frequency & better transit time
 Appropriate joint use of vessel fleets
 Reduced operating costs such as feeder / port /
terminal costs
 Maintain corporate identity while using the fleets
of other carriers
 Maintain fair competitive conditions among its
members
 Greater sales coverage

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