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's the Right Partner for
Shippers? Part II

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5. In today’s post, we will talk
about working with nvoccs and
freight forwarders.
See Part One

6. When we think of “lowest rates” we may automatically qualify it
as a good deal. Yes, lowest freight rates are increasingly
subjective to this volatile market that is influenced by a number of
changing factors such as open space on a vessel, cost of fuel,
actual supply - demand and other unpredictable factors.
Coming in under forecast when shipping cargo is usually a great
thing. However, it is not always so positive when the market is at
a low and your competition is paying even less.
In addition, internal resources and shipping expertise are not
always readily available to make the necessary changes on the
fly.

7. Nvoccs Come To The Rescue

8. Shippers might want to consider partnering with an NVOCC
which legally operates as a carrier by accepting all the
responsibilities for the cargo as well as issuing their own bill of
lading.
NVOCCS work with multiple shippers, bcos and commit huge
volumes to different voccs, which means higher levels of buying
power and discounted rates.
The surging number of mega-ships and sluggish global trade
growth have recently forced even the largest VOCCS to
restructure their service loops, reduce number of port of calls that
have left shippers with fewer shipping options.

9. Although VOCCS
have become
more flexible,
offering multiple
sailing schedules
through shipping
alliances, voccs
typically run only
one sailing per
port per week.

10. For shippers who are running
light on inventory, that might not
be soon enough. Since nvoccs
work with carriers from multiple
shipping alliances they can offer
various sailing options whether
it’s high or low season, existing
markets for shippers or new
territories they want to
penetrate into.

11. Freight forwarders
that either access
nvoccs, or is an
nvocc, specialize in
taking the hassle
out of logistics, and
offer up long list of
value added
services such as
real time visibility,
guaranteed on-time
delivery, port-to-port
deliveries.

12. Shipping lines needed to imitate
freight forwarders and offer a
greater range of services, as well
as differentiate their offering from
competitors.
-Rolf niese, recent head of logistics operations
at british american tobacco

13. Full Service Pampering From
Freight Forwarders

14. Freight forwarders know very well that they can’t compete with
voccs on price alone so their focus is more on value adding
services powered by huge investments into it/communication
systems.
Shippers, who do not have in-house logistics professionals can
face a serious hole when trying to optimize their logistics
operations. , in many cases, these companies need to outsource
their logistics responsibilities in order to respond to market
volatility or fix any issues within their supply chain.
Shippers with a fully outsourced business model are not only
loosing control of their own supply chain but are also leaving
money on the table with every container shipped.

15. VOCCS Or NVOCC/freight
Forwarders | Pick What Works
For You

16. There’s no cut and dry solution for every shipper given the
complexities of the industry. While there are a vast number of
factors and variables to consider, basing your decision on who to
partner with based solely on a single factor whether it’s price or
service, could lead your company down the road to ruin.
Consider the shape and scope of your business and work with the
one who best fits your needs.

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