3/27/2023 0 Comments Skarpsalling vessel meaningConsolidates and deconsolidates the containers at the ports or the dry ports.Blocks a space for the shipment in the container and arranges for the shipping as per the agreements with the shipping lines.Issues a House Bill of Lading along with other transportation documents for the shipment.In general, though, an NVOCC performs the following functions:. Functions of NVOCCĮach country has its own set of rules regarding how to apply for an NVOCC license that allows it to conduct various services. NVOCC guides you through this process, thus helping a lot of businesses who don’t have to run from pillar to post to ensure smooth transportation of their cargo. While shipping cargo, you often encounter a range of confusing Incoterms. NVOCCs act as a single point of communication for the importers and the exporters by taking care of consolidation, packaging, transportation as well as issuing of the necessary paperwork. This is useful for the merchants who don’t need to hire a separate agency for their last-mile transportation requirements. In this way, they provide seamless doorstep delivery solutions to their customers. Tie-ups for end-to-end transportĪlthough NVOCCs do not generally provide end-to-end cargo deliveries, they often tie up with other local transportation companies. NVOCCs ensure that you get the best option available that meets your needs. If you are on a tight budget, the NVOCC will offer you options within your price range.ĭirectly dealing with the shipping lines won’t fetch you such facilities since they can only offer their own limited services. If you want to track your cargo, the NVOCC can transport your shipment via a shipping company that provides this particular facility. Hence, you get a bouquet of transportation choices and can choose the one that best caters to your needs. One of the biggest advantages of using NVOCCs is that they provide an array of transport options for your cargo as these agencies sign agreements with multiple shipping lines. Moreover, since NVOCCs ensure a high volume of business to shipping companies every year, these shipping lines are more than happy to provide them discounted rates. An NVOCC consolidates multiple smaller shipments into a large one, thus providing pocket-friendly transportation. With NVOCC on their side, merchants no longer have to bear the exorbitant rates of the shipping lines for the space that they don’t even require. These reduced prices allow the NVOCC to provide the importer and exporter community with a cost-effective and safe method of transporting their cargo. The shipping line gets guaranteed business and hence provides discounted rates to the NVOCC. What is the role of an NVOCC?Īn NVOCC enters into an agreement with a shipping line and ensures to provide them with a shipment of a certain number of units per annum. It is a win-win situation as the shipping line doesn’t have to cater to smaller orders and gets a consolidated shipment, whereas, the small/medium scale company enjoys a cost-effective transportation solution. Such an arrangement is beneficial to both the parties i.e. NVOCC agencies sign contracts with shipping lines that allow them to offer shipping services to importers and exporters. An NVOCC also issues its own bill of lading, popularly referred to as a House Bill of Lading ( Read More), and in most practical aspects, it operates very similar to the manner in which a freight forwarder does.Īdditionally, an NVOCC also provides services like stuffing and transporting multiple containers to various ports. In essence, an NVOCC does pretty much everything except for operate the actual ship or vessel. NVOCC or "Non-Vessel Operating Common Carrier" or "Non Vessel Owning Common Carrier" is a company that procures spaces from VOCCs in bulk quantities and downsells them to small-medium sized shippers at a small markup. This is exactly where the role of an NVOCC plays out. However, this is not true in the case of all shipments, several medium-smaller sized companies, mainly export firms do not have such large requirements and rarely have the leverage to negotiate with the shipping company directly. Since most of these deliveries occupy the entire container or even several containers, there is no need for the consolidation of items or sharing of container space with other parties. These shipping lines own carriers and can easily cater to such large-scale deliveries. Companies that regularly import or export goods in huge quantities often contact the shipping lines directly for their transportation requirements.
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