What are the best practices for negotiating with ocean carriers?

1 Know your needs and options

Before you approach any carrier, you should have a clear idea of your shipping requirements, such as volume, frequency, destination, transit time, and special needs. You should also research the market conditions, such as supply and demand, rates, surcharges, and availability. This will help you identify your priorities, budget, and alternatives. You can use online platforms, industry publications, or freight forwarders to gather information and compare offers.

2 Communicate effectively and professionally

Communication is key to successful negotiation, as it allows you to express your needs, expectations, and concerns, as well as to understand the carrier's perspective, constraints, and incentives. You should communicate clearly, respectfully, and honestly, and avoid any ambiguity, aggression, or deception. You should also use the appropriate channels, such as email, phone, or face-to-face meetings, depending on the situation and the relationship. Moreover, you should document and confirm every agreement and commitment in writing, to avoid any misunderstanding or dispute.

3 Be flexible and creative

Negotiating with ocean carriers is not a zero-sum game, where one party wins and the other loses. Rather, it is a collaborative process, where both parties can benefit from finding a mutually acceptable solution. Therefore, you should be flexible and creative, and look for ways to add value, reduce costs, or share risks. For example, you can offer to commit to a longer contract, adjust your shipment schedule, or accept a different routing or service level, in exchange for a lower rate, a guaranteed space, or a better service.

4 Build trust and rapport

Negotiating with ocean carriers is not a one-time event, but a continuous relationship that requires trust and rapport. You should aim to establish a positive and cooperative atmosphere, where both parties respect and appreciate each other. You should also show interest and empathy, and acknowledge the carrier's challenges and contributions. Furthermore, you should follow up and deliver on your promises, and provide feedback and recognition. This will help you create a loyal and reliable partnership that can withstand market fluctuations and unforeseen circumstances.

5 Review and evaluate

Negotiating with ocean carriers is not a static process, but a dynamic one that requires constant review and evaluation. You should monitor and measure the performance and satisfaction of both parties, and identify any gaps or issues. You should also solicit and provide feedback, and discuss any changes or improvements. Additionally, you should benchmark and update your market knowledge, and look for new opportunities or challenges. This will help you adapt and optimize your negotiation strategy and outcomes.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?