NVOCC stands for Non-Vessel Owning Common Carrier. NVOCC operation comprises sales, stuffing, and transport of the containers to gateway ports. The bill of lading issue and overseas distribution is taken care of by the agents of NVOCC.
Main Functions of NVOCC
As mentioned above, NVOCCs lease or rent space onboard cargo or ships, and sell it to their clients.
Mostly, the NVOCCs are responsible for loading cargo from the customer facility and then transferring it to to the gateway of ports. In some cases, the NVOCCs also undertake the duty of the delivery of goods to the consignee at the destination. Their first key function , therefore, is to conclude contracts for the carriage of goods with the shippers.
Generally, NVOCCs do not own warehouses but some of them may have their own container fleet. They may also provide services such as cargo consolidation, deconsolidation at the destination, container cleaning, and repair, etc.
Since the maritime industry is vast, it comes with its fair share of challenges. The mechanisms and procedures are complex and can be difficult to understand, especially for newcomers to the shipping business. NVOCCs also help businesses clearing their goods through customs and other checks by guiding them on proper documentation and regulations.
Why Should You Go Through an NVOCC?
Ease of doing business
NVOCCs offer you the flexibility of dealing with a smaller organization than a large one, such as a large shipping line. This matters to small business organizations, especially those with a small workforce or IT infrastructure.
The bargaining power of such small to mid-size companies may also be limited and they may find themselves struggling to get better rates from large shipping agents or freight forwarders. Bureaucracy and long-drawn processes are often cut short in NVOCCs to facilitate ease of doing business, without cutting corners.
Better Rates
NVOCCs are often in a better position to give you a lower rate than a mainline shipping agency. Now, how do they manage this? NVOCCs negotiate and get better rates from shipping lines for giving them bulk business. They may pass on some of these savings in the form of better rates to the customer. Small business owners by themselves would not be able to obtain this reduced rate if they directly contacted a shipping line.
Personalized Service
One main advantage when you deal with NVOCCs is that they offer seamless and personalized service to their clients, unlike a large shipping company that usually deals with a very large number of customers. All the logistics functions can be entrusted to the NVOCC who can offer these services to you. It can also ensure that you get the best freight rates whenever possible.
NVOCCs are able to offer several sailing options since they work with different ocean transport carriers.
Tracking your cargo is critical when it comes to meeting business deadlines and commitments. Most NVOCCs offer online Track and Trace facilities that help businesses to find where their cargo is during transit. Information on lead-time (sailing time from origin to destination) patterns and trends are valuable to businesses for planning and forecasting alike.
Efficient Network with Local Bodies
NVOCCs usually maintain a good network of contacts with local trucking associations, trade unions, the Port Customs, etc. Such a diverse and effective network helps to get the work done smoothly and with minimum interruption. An NVOCC with good contacts and standing in the industry can therefore help mitigate the risks associated with trucking problems, labour unions – especially at ports, and other such situations that are seen as normal collateral by large shippers and freight forwarders.
Ease of Documentation
NVOCCs issue the Bill of Lading themselves. When it is issued by an NVOCC, it is called a House Bill of Lading or HBL. This makes the process of documentation much easier for the customer.
Conclusion
Transportation of goods from point A to B involves several stakeholders. And an NVOCC is a key stakeholder in this business, acting as a bridge between carriers and shippers. If you would like to use global trade data intelligence to expand your export or import business
