The past twelve months will be remembered as one of the most tumultuous times that the shipping industry has ever faced. Freight rates reached historical lows which sent ocean carrier profits spiraling downward. Shifting carrier alliances and carrier consolidation added to the uneasiness shippers were feeling in the shipping industry. The uneasiness reached its peak on August 31, 2016 when Hanjin Shipping shocked the industry by filing for bankruptcy.
The Hanjin announcement had instant ramifications in the market. Spot rates increased by 50% overnight and have been trending upward for the last several months. Throughout these tumultuous times, IHSA has been able to provide members with reliable service, support and most importantly savings. IHSA members benefit by having access to stable ocean freight rates that are significantly lower than the spot rate market. It should be noted that the freight savings are coming during the peak shipping season when IHSA members are importing the bulk of their containers.
Some companies that belong to IHA may not be aware that IHSA also provides member rewards in the form of a rebate to participating members. The more the individual member participates, the greater the membership reward. Individual member rewards can vary on an annual basis from a few hundred dollars to over $50,000.
We are pleased to report that IHSA has declared another rebate dividend for the period, June 1, 2015 through May 31, 2016, which coincides with IHSA’s fiscal year. The declared rebate amount, $142,672, will be disbursed to participating members during December 2016. IHSA is proud of the fact that participating members have received over $1 million in rebates since 2005. Not only are IHSA members saving on their ocean freight, they are benefiting from an innovative revenue stream.
The International Housewares Shippers Association (IHSA) is a not-for-profit association formed to benefit companies belonging to the International Housewares Association (IHA). Through the combined leverage of members, IHSA negotiates freight contracts and partners with other logistics providers to lower supply chain costs.
IHSA’s main function is to negotiate the lowest possible transportation rates and provide the highest quality service for all participating members. Additionally, IHSA members receive valuable market intelligence and advice through regular newsletters and briefings.
IHA member companies looking to reduce their ocean freight costs or have questions about an ocean freight issue are encouraged to contact IHSA to learn about the program. Contact IHSA at +1-513-489-4743 and learn more on our website.