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Summary: Explain Small Carrier Strategy And Bulk Shipment Strategy

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Explain small shipment strategy and bulk shipment strategy There are many shippers implement strategies to manage their respective networks. The strategies is carried out to satisfy the requirement of their external and internal customers by purchasing and managing transportation services The shipment strategies divided into small shipment strategy and bulk shipment strategy. Small shipment strategy includes freight consolidation, using drop-off carriers, pooling services, and also avoiding the use of private trucking. The purpose of this strategy is to decrease the inherently high transportation costs related with small-sized shipments. The shipper can take advantage of the carrier’s low rates for heavier shipments by developing the size …show more content…

These contracts are to ensure NVOCCs can find the shippers to match the space that provided by the carriers. Therefore, they are able to hold the bargaining power in order to obtain the lower freight rate from ocean carriers by using this way. The collaboration between NVOCCs and ocean carrier can increase the business of carrier. When most of the small and midsize shippers using the services of NVOCCs to deliver their products, the NVOCCs can get the lower freight rate from ocean carriers because the ocean carrier want to earn more business from NVOCCs Adoption of NVOCCs in business will reduce the fix cost of shipping liner from the aspect of ship expenses, procurement of vessel, depreciation and also the expenses of workers. NVOCCs would rent the capacity from other ocean carriers instead of to own the vessel. By using this way, NVOCCs can decrease the risk of fuel fluctuation in the market. In addition, there is a huge cost of vessel purchasing for shipping liner, so NVOCCs can establish more operation hub and recruit expertise in major port in order to reduce the

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