/ By tjchinafreight ivy / Shipping

Why your NVOCC should be FMC licensed

Why your NVOCC should be FMC licensed
Why your NVOCC should be FMC licensed

Choose NVOCC: Make sure it is FMC licensed

Given the number of NVOCCs in the world, choosing the right NVOCC for you can be a daunting task. How do you know which one is best for you? The first and most important step in this process is to ensure that your NVOCC is licensed by the Federal Maritime Commission (FMC).

What is NVOCC?

Let's start with the basics. N VOCC stands for Non-Vessel Operating Common Carrier. Its role includes contracting sea freight and shipping companies to move cargo from one point to another. It has agreements with carriers to provide its ships with a fixed number of slots each year in exchange for low rates.

NVOCCs are the largest traders in the container shipping industry. It issues bills of lading, takes responsibility and liability for the goods, and can also own and operate its own or leased containers.

NVOCCs and Freight Forwarders

NVOCC and freight forwarders are OTIs (Ocean Transportation Intermediaries). But they are not synonyms. NVOCCs can issue their own bills of lading, freight forwarders cannot; they can only work against carrier (or NVO) bills of lading.

Perhaps the most important difference is that, in some cases, NVOCC accepts all responsibility and liability for the goods. On the other hand, freight forwarders are not responsible for this. In addition, freight forwarders can act as agents or partners of NVOCC, but the reverse is not possible.

What does FMC do?

The Federal Maritime Commission is the U.S. federal agency responsible for regulating international shipping by U.S. ocean freight. FMC was established in 1961 to take over the responsibilities of the Federal Maritime Commission and has since been responsible for administering the regulatory provisions of shipping law. Today, it has more than 6,250 NVOCC registrations in its database.

What does it mean for NVOCC to have an FMC license?

With the FMC license, NVOCC can negotiate contracts with steamship companies. It also allows them to confirm their own House Bill of Lading as a Carrier Bill of Lading. For customers and suppliers, this is proof that the NVOCC is legally conducting business within the regulations set forth in the United States.

What happens if you work with a non-FMC licensed NVOCC?

This is the equivalent of hiring an unlicensed and uninsured contractor to work on your property. If something goes wrong, you have nowhere to go for help and support. In a more drastic way, basically, the only rules unlicensed NVOCCs have to worry about is getting paid and doing minimal work for the carrier/customs to accept your cargo as they are not subject to the regulations set by the FMC and obligations.

/ By tjchinafreight ivy / Shipping

6 Facts About Drug Shipping

pharmaceutical transportation
pharmaceutical transportation

Pharmaceutical transportation

If ocean shipping is not a sufficiently challenging process, try to imagine pharmaceutical shipping. We are talking about the logistics of drugs, pharmaceuticals, biomaterials, etc. Not only do these need to be kept at extremely precise temperatures, any issues in shipping can result in huge financial losses or worse, without potentially saving a life.

Logistics companies are often under enormous pressure to deliver medicines under high demand. These typically include zero damage, zero lateness and the possibility of track and trace.

To maintain accurate temperatures during transport, companies often use special equipment, including cryogenic containers, dry ice, thermal blankets, and insulating packaging. Sometimes temperature sensors are also included to monitor the temperature of the product throughout shipping.

But, of course, it never goes as smoothly as it looks in transit, and it's always a good idea to have extra resources on hand. In the event of delays such as Food and Drug Administration (FDA) inspections or other unexpected setbacks, further steps may be required.

Here are six interesting facts about pharmaceutical shipping.

  • Medicines need to be kept at precise temperatures to maintain their efficacy. These include the flu shot and insulin.
  • Pallet insulation blankets can be used to protect from sunlight, humidity, etc. It maintains a constant temperature range around 15°C to 25°C.
  • 7 out of 10 leading pharmaceutical products require temperature-controlled shipping.
  • Biological materials (e.g. blood, tissue, reproductive material) and clinical trials need to be stored in cryogenic containers that can be kept at -150°C for at least 10 days.
  • A temperature change of as little as 2°C can completely destroy a drug product.
  • Pharmaceutical companies lose an average of $150,000 per small package shipped due to cooler temperatures. For larger shipments, this can cost millions of dollars.