In this series of blog posts we are going to introduce pros and cons of working directly with carriers and freight forwarders to help shippers, BCOs make an informed decision and keep their cargo moving.

1. Who Is The Right Partner
For Shippers?
(Part One)

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5. Introducing the pros and cons of working
directly with carriers and freight forwarders
to help shippers,
VS.

6. Where To Get The Best
Services

7. As a first instinct, to get the best shipping rates and service, you
may want to go straight to the source that actually moves your
cargo.
These are the VOCCS, vessel operating common carriers who are
the owners of those massive vessels and containers that provide
transportation of cargo from the port or point of receipt to the
port or point of destination.
However, just as most of us do not buy enough shoes in a year
that would make us able to purchase directly from the shoe
factory, voccs also have limitations. They do not have the
resources and they do not want low teu volume shippers to
contact them.

8. Working With Vessel Operating
Common Carrier (VOCC)

9. Typically shippers that
move large volumes on
few lanes can benefit
greatly from signing
agreements directly with
voccs. There are multiple
reasons to it.

10. From financial point of view, working directly with the company
that actually moves the cargo the shippers can bypass the
middleman, allowing them to save on what would normally be
cashed by a forwarder.
For companies such as giant retail chains to keep merchandise in
their stores, and weather seasonality, provided services and
availability of shipping containers are equally if not even more
important than price.

11. Freight forwarders
neither own nor
have direct control
over any asset.
They have to
contact and
instruct the
carriers to make
shipping units
available and
board them on the
vessel.

12. Carriers on the other
hand own and
control majority of
containers, vessels
and other assets so
they have the ability
to deliver the
required quantities
and varieties of
units at any time
and at any given
location within their
network.

13. WHILE A VOCC IS A GREAT CHOICE
FOR THOSE RUNNING LARGE
FEW-LANES SUPPLY CHAINS,
SHIPPERS EVEN WITH LARGE, 50,000
TEU VOLUME MIGHT COME SHORT IN
NEGOTIATING DIRECTLY WITH
CARRIERS IF THEIR TEU VOLUME IS
SPREAD OUT OVER THOUSANDS OF
SHIPPING LANES AND THE AVERAGE
TEU'S-PER-LANE IS JUST A FEW PER
YEAR.

14. Stay
Tuned
Stay tuned for part two where we look at the pros
and cons of working with nvoccs and 3pls.

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