What Are Shipping Alliances, How Do They Work And What Are The Benefits? KTL UK Explains.
An introduction to shipping alliances, and the benefits for freight forwarders and end customers When you are considering your freight options for getting shipments from one part of the world to another, you might come across mention of global freight and shipping alliances , and wonder exactly what these “alliances” are. Further to the point, why should you – as an end customer – care? The term “shipping alliance” refers to when multiple ocean carriers enter into a cooperative agreement together. Forming a shipping alliance – or an “ocean alliance”, as it is also often called – enables the cooperating carriers to make their prices more competitive and broaden their service coverage. How do shipping alliances work? A key feature of how global freight and shipping alliances work is that the carriers making up the alliance commit to vessel-sharing arrangements, so that they can cover the largest possible amount of the shipping market. Or to...