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Bluex trade11/12/2023 ![]() ![]() While BCOs (beneficial cargo owners) are large enough with their own in-house team and don’t utilize freight forwarders for their logistics needs, most shippers need to outsource to 3PL providers.Ī freight forwarder can streamline your business by 1) managing all shipping logistics and 2) offering documentation management. Choosing a freight forwarder often comes to finding one that can offer the services you need.įor most shippers, the monumental task of importing and exporting is beyond their means. Just as every shipper’s needs are unique, freight forwarders distinguish themselves based on their expertise within certain logistical services. Small freight forwarders are generally more likely to be able to offer better customizability and assistance, while larger freight forwarders can offer lower rates and have better relationships with other players in the industry. As well as that, their relationships with carriers and 3PL service providers are also vital in securing competitive rates and space. The level of service that you’ll receive from a freight forwarder will depend on their size and expertise. This is why freight forwarders have become an integral part of international trade they bridge buyers and sellers through logistics and industry expertise. This complexity, which has only grown more convoluted over time, can also lead to risks. The expertise involved in understanding international custom laws, finding appropriate shipping routes, and obtaining certificates are simply outside the ability of the majority of shippers. From booking to delivery, the entire process requires industry knowledge across dozens of areas. The complexity involved in the shipping process is mind-numbing. Whether you’re shipping by sea, land, or air, or through a combination of these, the logistics are intimidating enough to make anyone think twice about importing and exporting. The logistics behind the transportation of goods is staggering, even for shipping industry veterans. What 3PL Services Can Freight Forwarders Provide As stated above, there is a legal distinction between the two entities in the United States, but this isn’t always the case depending on countries or regions. This is because many freight forwarders act as NVOCCs, and many NVOCCs act as freight forwarders. ![]() Internationally, however, NVOCCs and freight forwarders tend to be seen as the same entity. Negotiating space from common carriers to contract out to freight forwarders and shippers.Please note, freight forwarders are not responsible for shipment delaysĪ Non-Vessel-Operating Common Carrier (NVOCC) is a common carrier that does not operate the vessels that ship cargo, and instead, they operate by: ![]() Organizes shipments from the US through a common carrier and books cargo space for shippers.Arranges the movement of cargo internationally.The two entities are separated as follows:Īn Ocean Freight Forwarder is defined as being an individual or company located in the United States that: However, in the US, the FMC (Federal Maritime Commission) does categorize these two entities differently. NVOCC stands for ‘Non-vessel Owning Common Carrier.’ NVOCCs and freight forwarders are very similar, and their activities can blur so much that many shippers see them as being the same. What is the Difference Between a Freight Forwarder and NVOCC? ![]()
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