Shipping alliances and why they matter: Reasons to join the Global Shipowner Alliance (GSA)
The Global Shipowner Alliance (GSA), operated by Marine Online, aims to bring together shipowners in order to lower the costs of ownership and provides a multitude of benefits for members. As an integrated supply chain, the GSA aims to provide supplies and services to members and it has been estimated that members of the GSA would experience an average of 10% savings for transactions. Unlike shipowners associations, the GSA focuses on providing tangible benefits such as discounts for marine services. The GSA will look to reduce costs for alliance members by consolidating purchase orders from GSA members and passing them to Authorised Service Providers (ASP) in order to reduce acquisition costs. These savings are then passed on to GSA members, thus benefitting them directly. This is particularly of note to shipowners with smaller fleets, who have less negotiating power, and tend to receive less favourable terms when dealing with suppliers as compared to owners of large fleets. Through this shipping alliance, shipowners are able to collectively negotiate for a better price. Furthermore, since services are provided by ASPs part of the shipping alliance, service level is consistent across the board. Services provided by ASPs include supplies, bunkering, port agency and crewing. ASPs will be regularly evaluated for the quality of service, ensuring that quality remains high and that standards are met. As members of the GSA, shipowners will also instantly receive US$20,000 worth of Marine Credits. Marine Credits can be used make purchases from Alliance partners on Marine Online’s platform, and can also be used for cross-border transactions. The consolidated credit helps save shipowners time and administrative work as they do not have to get separate credits from individual suppliers. Alliance members will also be able to charter vessels at a 0% commission rate through Marine Online’s platform, thus providing further savings. Furthermore, a complimentary Automatic Identification System (AIS) account worth US$2,000 will be provided, allowing shipowners to use real-time vessel positioning and tracking. The AIS contains information for more than 200.000 vessels in real-time. The GSA also offers many different features that will allow shipowners to save money, including attractive foreign currency rates, with a discount of up to 2.4% as a result of cooperating with an affiliate of Alibaba. GSA members are able to convert funds to their chosen currency without any extra charges. In addition, Marine Online provides Cash To Master service at a flat rate of US$198, regardless of the sum of money exchanged, compared to a percentage of cash exchanged for other service providers. This will provide significant savings for shipowners, especially when exchanging large sums of money. To find out more information about the GSA, you can visit https://www.marineonline.com/ocean-shipping-alliances-singapore.