Don’t we just love an acronym in the shipping sector?
But this time – wait for it – rather than a term relating to the process of shipping, it’s to do with who ships the goods.
Riveting.
Nonetheless, it’s something you should know about. Hold on to your hats…
What Does NVOCC Mean?
NVOCC stands for ‘non-vessel owning cargo carrier’.
In basic terms, an NVOCC is a shipping company that hires a certain amount of space or units each year from a shipping line. This is then sold on to their clients. The process is a little like bulk buying – by buying tons of shipping space in one go – but not buying ships themselves – NVOCCs can offer their clients better rates.
Isn’t That What A Freight Forwarder Does?
It’s a fair question, but no.
A freight forwarder operates the supply chain. Forwarders don’t physically move the goods themselves but rather build an extensive database of contacts within the industry to access good rates for their customers.
An NVOCC tends to manage their own containers and utilises space in other people’s ships to get your goods to their destination.
There are some pretty significant differences between a freight forwarder and an NVOCC. Most significantly, NVOCCs provide…
Direct, Competitive Rates
NVOCCs have service contracts with shipping lines and/or ship owners, which means they can access better rates and get all the inside information. Every. Single. Time.
Their Own Documentation
NVOCCs issue their own Bill of Lading. This is a huge advantage because it means no waiting around to get the papers you need to move your goods.
Not sure what the Bill of Lading is? This is one of the most important legal documents used in both domestic and international shipping. It acts as a contract for all parties and can usually only be issued by the carrier. Read more about BoLs here.
As it happens, Millennium is an NVOCC, and we’re happy to say we can get your documents to you in just 24 hours.
The Advantages of Using An NVOCC
NVOCCs can be freight forwarders, but not all freight forwarders can be NVOCCs.
Here are the benefits of using an NVOCC.
Rates
NVOCCs deal with sea freight and sea freight alone, meaning they are as expert as you get. They know precisely which carriers suit which destinations and can get the best quotes for your route – fast.
Capacity
NVOCCs typically have plenty of space available on different ships that run the best routes. They’re likely to have great relationships with carriers worldwide and gain access to extra capacity easily.
Customer Care
NVOCCs are set up to be more adaptive to the needs of small and medium-sized businesses and tend to have gold-standard customer service. You’ll get quick quotes, and things are made simple, including the ability to choose the currency you deal in so that you won’t lose out due to currency conversions.
Flexibility
NVOCCs can create their own tariff because they’ve bought the space on the vessels already; it’s up to them to book out the space for you. This cuts out the middleman fee of appointing a forwarder and makes their approach a flexible one.
Tracking
As well as being able to advise on a range of shipping options, NVOCCs can offer online tracking services so that clients can keep a handle on where their cargo is during transit.
Who Should I Use?
This comes down to what level of service you require.
If you’re an experienced shipper, importer or exporter and know what you’re doing, opting to use an NVOCC could save you a lot of money. However, if you’re looking for someone who will listen to your wants and needs and arrange every little detail for you, a freight forwarder might suit you more.
A freight forwarder who is also an NVOCC means you get access to the best of everything.
Cost
As mentioned above, an NVOCC will save you money if funds are tight. Freight forwarders also tend to optimise add-on services which accrue additional expenses for the client. Before choosing a freight forwarder, it’s important to get an itemised run-through of what’s included in a quote.
Reliability And Flexibility
When small or medium businesses work with major shipping lines, there is no room for negotiation. NVOCC offer smaller businesses the ability to negotiate on their behalf, meaning clients can rely on NVOCCs to advocate for their needs.
Expertise
Both forwarders and NVOCCs employ a broad knowledge of all things shipping. Forwarders, in particular, are experts within the international trade market, but because NVOCCs deal with ocean freight alone, this can be useful for accessing the best rates.
Communication
NVOCCs typically have a smaller client base of younger, smaller companies. Customer service is responsive and adaptive because they care about their customers.
Timeliness
Waiting for documents can be frustrating, and when you needed your Bill of Lading yesterday, the delay can be a problem. NVOCCs can issue their own BoL, often within 24 hours, and any issues are promptly dealt with because their client base is neat and tidy.
Both NVOCCs And Forwarders Are Reliable Solutions
Experts in the field, NVOCCs and freight forwarders alike can help you get your goods from A to B. The difference?
An NVOCC enhances what a freight forwarder can provide because they are in direct communication and employ respectful relationships with carriers worldwide; they cut out the middlemen, reducing rates for you and providing excellent customer service.
Did you know that Millennium Cargo is an NVOCC? That’s right. And we’re pretty good at it. Get in touch today to find out how we can meet your shipping needs.