Choosing a carrier to hold them accountable for critical cargo is a challenging decision for many managers. Shipping partners have a significant impact on shippers’ operations. It is important that managers have the criteria to evaluate and select the most suitable partner for the shipping process.
Shipping partner is an important factor
In order to assist managers in the evaluation process, we would like to present a guide to assessing carriers according to several objective criteria. Depending on the business needs of your company, determine the most important criteria and based on that to choose the right supplier.
1. Types of transport partners
Carriers are companies that provide air, sea or land transportation services. There are two main types of transport carriers: private and rental. A private carrier will service the company and industry wishing to own or lease the vehicle, with no additional charges in addition to service charges. On the other hand, the leased carrier will provide the service to the public for an attached fee, while at the same time complying with the State’s regulations on rates, routes and service markets.
Types of transport partners
- Private carriers: Groups that provide exclusive transport within an organization. Private fleets of vehicles will be used to transport goods from the supplier, helping to reduce overall operating costs. Most private vehicles such as cars and pickups can act as a means of advertising, in the form of “mobile billboards”.
- Conventional Carrier: The means of transport are public and the airline does not offer a special service package to any organization. Regulations of these firms are often based on fees, liability and provided services.
- Contract carrier: This type of company does not serve the general public, but leases a limited number of drivers and under a specific contract. They are under no obligation to provide services to the public, but only to contracted clients.
- Duty free transportation: A carrier that leases but is not subject to economic laws, such as a taxi or truck. They are not restricted in terms of routes, service area or price. Their exemption is determined by the type of product shipped and the nature of the organization.
- NVOCC (Non Vessel Owning Common Carrier): a company doing business in the field of sea freight, is considered a carrier but different from the shipping lines (Shipping Line), meaning that they do not have offices. own a ship. NVOCC’s activities include selling, loading and transporting containers to shipping ports. Overseas bill of lading and distribution issues will be managed by NVOCC’s dealers.
