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Independent Services': Advantages
Independent Services': Advantages
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
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