Shippers everywhere are getting in the freight forwarder bandwagon. The great thing about working with a freight forwarder is all of the logistics services, that they provide, including warehousing, customs brokerage and trucking. In addition, many freight forwarders are also licensed as a Non-Vessel Operating Common Carrier (NVOCC). While an NVOCC usually does not own their own vessels for voyage, they can issue their own bill of lading, consolidate shipments and offer ocean freight shipping quotes to shippers.
The Journal of Commerce recently reported of the NVOCC growth between destinations in the Far East and the US East Coast. Apparently, NVOCCs are now offering more ports, more lines and more transit times per week. The increase in NVOCC service between the Far East and the US means that shippers are turning to NVOCCs everyday. According to this report, US imports from NVOCCs increased during the past two years. During that time, direct carrier-only shipments decreased. Last year, NVOCC shipments comprised 35% of all imports, up from 31% the previous year. This 4% increase represents an additional half a million Twenty-foot equivalent units (TEUs). In addition, 9 out of the top 10 carriers increased their import shipments from NVOCCs.
Working with a NVOCC is not a fad. Rather, this is a trend that is increasing. Many shippers are getting better deals and a more personal service by working with a NVOCC. Therefore, it would be wise for a shipper to book their freight with an NVOCC so that the shipper can experience great cost savings.