May 17, 2020

Xeneta pledges transformation of ocean freight rate negotiations

freight
Xenata
Technology
James Henderson
2 min
Tungsten Network and BNP Paribas are collaborating to offer supply chain finance tools
Ocean freight rate benchmarking and market intelligence platform, Xeneta, is launching a product offering that aims to “transform the way shippers, fr...

Ocean freight rate benchmarking and market intelligence platform, Xeneta, is launching a product offering that aims to “transform the way shippers, freight forwarders and carriers conduct freight rate negotiations”.

The Oslo headquartered firm has created a new offering, Xeneta Shipping Index (XSI) that allows all parties to set rates at transparent, efficient and fair prices that directly follow market fluctuations.

The firm said it ensures all stakeholders get the right price for their products and services, relationships are improved and complex, time-consuming negotiations become efficient.

“After several years working closely with cargo buyers and sellers, the one thing that is a clear pain point for many organisations is the inefficiency and opacity of contract negotiations,” explains Xeneta CEO Patrik Berglund.

“Freight rates are dynamic and prone to rapid change, so a shipper traditionally negotiating what they consider to be a fair rate for a long-term ocean freight contract can find that, three months later, they’re paying far in excess or below the actual market rates. This has the very real potential to make their products noncompetitive in the marketplace or risk supply chain disruptions.

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“Similarly, for carriers, when the market is low or high, they risk shippers taking their business somewhere else or not living up to their contracts as these are not enforceable. The current situation is not ideal for buyer or seller and neither one has the upper hand.”

XSI is a global ocean freight index with its foundations in Xeneta’s neutral database of over 65 million contracted rates, covering over 160,000 port-to-port pairings, which is crowd-sourced from more than 700 leading international businesses with power shippers like Electrolux, Nestle, Unilever, ThyssenKrupp, Tata Steel and Continental.

The new index allows stakeholders in the negotiating chain to tie rates to the market relieving from frequent or periodic contract negotiations.  

“XSI allows independent, verified and up-to –the-minute rates to be tracked over major shipping routes covering 57 corridors representing 95% of global intercontinental volumes, such as Asia-Europe, Europe-Asia, trans-Pacific, trans-Atlantic,” Berglund explains.

“If all parties looking to sign a contract agree to use the index they can secure competitive rates over the long-term, building trust and reliable relationships with one another. What’s more they can save on all the resources, guess work and hassle associated with negotiating.”

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Jun 16, 2021

Grupo Espinosa: 70 years of constant evolution

Macmillan Education
Grupo Espinosa
3 min
A proudly Mexican company servicing the publishing industry with best-in-class printing, storage and distribution facilities in the heart of Latin America

Founded in 1952, Grupo Espinosa has been relentlessly supporting the publishing industry with producing more than 100 million copies every year – whether its books, magazines, catalogues or single-order custom prints. No project is big or small for Grupo Espinosa, as the facility can scale up on demand and their turnaround times are highly competitive. Grupo Espinosa works with on-demand digital press or offset press, in paperback with glued softcover binding, PUR softcover binding, stitched paperback binding, binder’s board, hardcover, saddle stitched, Spiral or Wire-O. Equipped with the experience needed for a product to leave the plant ready for distribution, Grupo Espinosa delivers anywhere inside or outside Mexico. Traditionally starting off as a black and white printing press, Grupo Espinosa has experienced transformation first hand – from colour to digital offset printing. Currently, Grupo Espinosa is also looking at making capital investments into audio books to match with the increasing demand. 

So how did a seemingly local operation in Latin America become a world-renowned printing facility trusted by hundreds of clients? As Rogelio Tirado, CFO of Grupo Espinosa for the last six years says “It all comes down to our market experience and our dedication to quality”. With nearly 70 years behind them, and located in Mexico City, Grupo Espinosa has two major locations – one spanning 75,000 square metres and the other about 45,000 square metres. Both locations are controlled by a single ERP (Enterprise Resource Planning) system ensuring speed, consistency and quality of work. Tirado says this isn’t their only competitive advantage. He adds “Our competitive advantage is the relationship we have with customers and the trust they put in us with their intellectual property”. Speaking of trust, global publishing giant Macmillan Education exclusively partners with Grupo Espinosa for their Latin America operations, as part of Macmillan’s decentralized hub strategy. Having a facility that offered the full spectrum of service – from storing digital content to printing and distributing – was one of the major requirements for Macmillan, and Grupo Espinosa was recognized as the leading printing hub for providing this 360 infrastructure. Another factor that has led to success for Grupo Espinosa is the absolute focus on quality and time. The staff are committed to providing the best quality in the best possible time, without causing wastage of resources. Sustainability is a huge factor playing into Grupo Espinosa’s operations, and they’ve created a healthy environment with the sustainable use of paper and energy resources as well as keeping their employees – most of them associated with the organisation for over 10 years – happy. He adds, “In order to be truly successful, you need to be good to the environment, employees, suppliers, and your customers. But most importantly, you need to be sustainable, you need to have proper working conditions, pay proper salaries, proper prices for paper, source the paper from sustainable sources, pay your taxes,  basically be a good global corporate citizen and that's probably one of the biggest achievements that we have.”

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