More Questions?
Contact Jeff Bergmann if your question has not been answered.
Ready to Become an IHSA Member?
For any shippers association to be successful, there needs to be clear communication between the management staff and the membership. Members must understand what it takes to make a shippers association successful.
It is imperative that every company considering IHSA has the facts to make a sound decision. Listed below are some of the more common questions that are asked about the IHSA. We urge you to review them and contact us with any further questions.
Are we forced to use IHSA carriers and partner programs?
Being a member does not obligate you to use IHSA carriers or partner programs. You are free to negotiate directly with other ocean carriers for your ocean freight. You are not required to use IHSA’s nominated customs broker, freight forwarder, or consolidator. In fact, many members continue using their same broker and forwarder when shipping under IHSA’s ocean contracts. The partner programs are provided for members that are looking for an alternative. It should be noted that the members that have switched are very pleased with the service and competitive rates being offered.
What about confidentiality? Will other IHSA members have access to my shipping information?
Anti-trust laws, along with IHSA’s operating procedures, forbid us from disclosing individual member shipping information. Our ocean contracts are negotiated by an independent executive director who cannot be a representative or employee of any association member. Any shipping information provided by a member to the IHSA management team is held in strict confidence! In the same manner, IHSA expects members to hold IHSA information in confidence should they choose to negotiate directly with ocean carriers outside the IHSA program.
Are we expected to make a container commitment prior to viewing the contract rates and carriers?
Absolutely not. Members will be able to view all rates (by carrier) prior to committing any cargo to IHSA contracts.
How many containers do we need to commit?
The amount of containers you commit is entirely up to you. It is not uncommon for some members to start with a small commitment in order to try out IHSA. However, IHSA prefers members make a realistic commitment to the contracts. Remember, your container fees and the amount of refund will be directly proportional to the amount committed and shipped.
Are we required to commit containers by origin and destination? How about by carrier?
Members are not required to make a container commitment by origin, destination or carrier. For example, a member that commits 50 containers to IHSA is free to utilize any contract and will have access to all rates in the contracts. The only requirement by the member is to ship a minimum of 50 containers through IHSA contracts.
Can we select our carrier? Can we select more than one carrier?
IHSA works with you to establish your carrier preference. IHSA does its best to make sure you are using a carrier that meets your needs. You are free to support only one carrier or all of them. It is your decision. It should be noted that a major benefit of IHSA is the ability to try different carriers without having to take on the liability of signing a contract.
Why would it be beneficial to share our rates with IHSA?
IHSA’s primary responsibility is to try and reduce your freight costs. It is not possible to achieve this goal unless IHSA has accurate shipping information. Asking a carrier to simply provide “the best rate” is not going to get the job done. IHSA needs to be able to provide a realistic target rate, that if secured, will generate real volume.
Why does IHSA need to know our current service providers?
If your present rates are with a Tier 3 carrier, IHSA needs to know this so a proper "apples-to-apples" service comparison can be made. This information also allows IHSA to target the proper carriers for rate requests. The members that provide complete and accurate shipping information benefit the most from being a member of IHSA.
Can I share my association rates with my current provider to lower my costs?
Sharing your rates with your service provider is detrimental to the Association. It is the principal reason that some associations have failed. IHSA carriers will also be less inclined to provide competitive quotes if it is assumed the rate will be shared with your current provider. IHSA shares rates with members in good faith and hope for a level of support should IHSA achieve a savings.
Is there additional work required on my part?
There is very little work required on your part. However, you must be willing to invest some time during the rate negotiation process, so we can obtain the lowest landed cost for your company. It is up to you whether this is handled over the phone or by E-mail. Our goal is to make using IHSA an easy process. You decide how much interaction you want and/or need with IHSA.
Our company is a large shipper. Why should we support IHSA?
Members that commit 1000 Feus or more pay no per container fees. If you are a large member, you need to consider the following: even if IHSA is only able to match your ocean rate, there is plenty of incentive to support the Association. Although you receive the same ocean rate, you have a larger carrier selection, reduced liability for contract shortfall, pay no container fees, and receive a refund check from IHSA creating a revenue stream for your organization.
My service provider is telling me that by using the Association, I may not be able to get the same individual treatment with regard to equipment needs, space commitment, and servicing my account. Is this true?
Once the contracts are signed, IHSA carriers inform their local sales offices of any IHSA members in their territory. The sales representatives are very quick to contact you regarding your shipping requirements. If you feel your account is not being serviced properly, let IHSA know. IHSA will contact the corporate office on your behalf and get the problem resolved. To say that you will be treated differently by a carrier because you are a member of a shippers association is simply not true. In fact, because IHSA contracts with several carriers, there is greater opportunity for members to switch program carriers if service levels are less than expected.
What about customer service?
IHSA believes customer service is about flexibility, giving members as much as or as little help as they want. IHSA continues to strive to make using Association programs a simple process where little communication is required. But IHSA understands there are situations when members need support to conduct day to day business. Smaller members rely heavily on the Association. In fact, many treat IHSA as an extension to their operation. Customer service is about building lasting relationships with members. IHSA is 100% committed to ensuring your needs are addressed in a timely and respectful manner.
