"Out of the Box and from a different angle"

Shippers' Associations generally are non-profit, membership cooperatives which make domestic or international arrangements for the movement of members' cargo. They are a means by which the small and medium sized shipper, and even the large shipper, can obtain economies of scale without the markups charged by other transportation intermediaries who perform consolidation services in order to obtain volume discounts. In other words, the discounts resulting from consolidation of many shippers' freight go directly to the pocket of the shipper- not to a third party.

 Shippers' Associations come in all forms and sizes. They have adapted to deregulation and the fluctuations in traffic patterns that have occurred as a result of changing domestic and international trade flows. Shippers' Associations can have as few as two and as many as several thousand members. Some Shippers' Associations limit their membership to entities shipping or receiving the same commodities, or who are members of the same industry or industry trade association. Other associations may be general freight associations, but limit their membership to shippers in the same geographic region. Annual revenues generated by associations may range from less than $200,000 to more than $100 million.

Shippers' Associations may be formed for a number of reasons. The most obvious one is savings. Associations form to enable their members to obtain quality transportation services at a cost lower than that individually available to them. Another reason is to increase negotiating power. A group of shippers acting collectively will often receive greater attention -- and more attentive service -- from motor carriers, railroads, and water carriers than individual shippers acting alone. In recent years, ports, local communities, and local shippers have looked to Shippers' Associations to promote or retain international traffic through a port authority which may be competing with other ports for a "load center" status, while trade associations and export trading companies have looked to Shippers' Associations as an effective vehicle for import-export trade development as well as for domestic market penetration.

Shippers' Associations provide exceptional flexibility. Shippers who seek a total transportation package may choose to join a traditional, or full service, Shippers' Association. This type of association, which has evolved over the past 100 years, primarily in the domestic market, has operational facilities and employees. The association will ship the goods in its own name, issue a shipping receipt to the association member, and process loss and damage claims on behalf of the member. The full service Shippers' Association provides a wide range of transportation alternatives to its members, usually having arrangements with trucking companies, rail companies, and ocean carriers to provide a door to door transportation service for the member or, if desired, to provide only one segment of the transportation movement.

A second form of Shippers' Association is gaining increased popularity. The "rate negotiator" Shippers' Association which negotiates favorable rates on behalf of its members with all carriers and services. The rate negotiator Shippers' Association does not become involved in the operational aspects of the transportation movement, but may assist in arranging a complete transportation package. Depending on the needs of the members, a carrier may either invoice the association or bill the individual member.

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