SPEAKERS of recent Shippers' Voice Seminars, now available online, have been calling on shippers to be more savvy when negotiating with carriers and "to understand better, measure more, take control and not to be afraid of challenging things presented as non-negotiable" during contract talks.
Shippers don't realise they can challenge the terms of Bills of Lading, Freight Transport Association policy campaign manager Chris Welsh told delegates attending the latest Shippers' Voice seminars held at the Multimodal 2009 exhibition in Birmingham, England.
Bills of lading (BL) terms are often assumed to be non-negotiable and based on mandatory law, he said. "In fact, they are mostly contractual stipulations that are principally of benefit to the carriers - after all, they are the carrier's terms," he said.
Mr Welsh said that shippers looking for a suitable shipping line need to strike a reasonable balance, and take legal and insurance advice, but they should not be afraid to challenge the carrier's terms, especially now that carrying capacity exceeds demand.
Andreas Holter, a supply chain manager for a metal recycling company, said parties buying global transport services should control the tender process to ensure all the elements considered important are included.
"Obviously we have to make sure that we give the carriers all the relevant information they need to do the tender, but once they have contracted to deliver a certain level of service, then we should make sure that they do what they promise," said Mr Holter.
He said that by keeping records of delivery times and average length of delays he can build up a picture of the service on offer that helps him arrange his shipments. He can also use the data to put pressure on the supplier to improve the service levels promised.
The Freight Transport Association (FTA), which represents British shippers' interests, has published a guide (Negotiating Modern Liner Shipping Terms - A Shipper's Guide) and is holding a master class on September 16 on negotiating terms between shippers and carriers. For more information visit: www.fta.org.uk
Shippers don't realise they can challenge the terms of Bills of Lading, Freight Transport Association policy campaign manager Chris Welsh told delegates attending the latest Shippers' Voice seminars held at the Multimodal 2009 exhibition in Birmingham, England.
Bills of lading (BL) terms are often assumed to be non-negotiable and based on mandatory law, he said. "In fact, they are mostly contractual stipulations that are principally of benefit to the carriers - after all, they are the carrier's terms," he said.
Mr Welsh said that shippers looking for a suitable shipping line need to strike a reasonable balance, and take legal and insurance advice, but they should not be afraid to challenge the carrier's terms, especially now that carrying capacity exceeds demand.
Andreas Holter, a supply chain manager for a metal recycling company, said parties buying global transport services should control the tender process to ensure all the elements considered important are included.
"Obviously we have to make sure that we give the carriers all the relevant information they need to do the tender, but once they have contracted to deliver a certain level of service, then we should make sure that they do what they promise," said Mr Holter.
He said that by keeping records of delivery times and average length of delays he can build up a picture of the service on offer that helps him arrange his shipments. He can also use the data to put pressure on the supplier to improve the service levels promised.
The Freight Transport Association (FTA), which represents British shippers' interests, has published a guide (Negotiating Modern Liner Shipping Terms - A Shipper's Guide) and is holding a master class on September 16 on negotiating terms between shippers and carriers. For more information visit: www.fta.org.uk