A logistics and shipping establishment undertakes a range of activities for its clients, such as ocean, air, and land freight forwarding, cross-trade services, customs clearance, warehousing, and so on. One such essential service offered by the organizations is the NVOCC service. NVOCC stands for Non-Vessel Operating Common Carrier. An NVOCC works as an intermediary body that assists suppliers in shipping their goods across the globe. If you are looking for reliable NVOCC services in Dubai, reach out to Livro Shipping.
An NVOCC does not own or operate its own vessels. Instead, it provides ocean freight transportation services by combining shipments of multiple customers, placing them into a single container, and shipping them. This is an excellent example of achieving economies of scale and optimizing transportation costs. In other words, an NVOCC is a consolidator, not an owner of ships. They organize the shipping process and handle all the big and small tasks of reserving cargo space, compiling shipments, and administering paperwork.
The global shipping industry faces several challenges and complexities, especially with increased trade volumes and the labyrinth of supply chains. Traditional shipping models come with their limitations. It is in this scenario that NVOCC emerges to simplify the system and act as a bridge that offers flexibility and efficiency in transportation. NVOCCs have a unique relationship with shipping lines. Their additional expertise and infrastructure enable them to provide a plethora of services that ease logistics processes and facilitate international trade. Learn more about one of the leading international freight forwarders and NVOCC service providers in Dubai.
Let us look closer at how NVOCCs play a significant role in global logistics.
1. A comprehensive range of services
Be it cargo consolidation, bookings, customs clearance, or documentation, NVOCCs offer a wide variety of solutions for customers. They play the role of a mediator between shippers, consignees, and carriers, and streamline the logistics chain, thereby ensuring seamless operations and on-time delivery. Businesses can take advantage of reduced administrative burden, and focus on their core competencies.
2. Industry expertise and extensive knowledge
An NVOCC service provider, such as Livro, comes with valuable industry expertise and in-depth knowledge of the shipping and logistics industry, enabling them to maneuver the intricacies of tariffs, regulations, and paperwork. Armed with critical inside information on international trade laws, customs procedures, and shipping regulations across different countries, a competent NVOCC will be able to guide customers and help them tackle the complexities of global logistics. NVOCCs are also equipped with skills to ensure compliance, minimize delays, and prevent potential pitfalls.
3. Competitive pricing and service agreements
As mentioned earlier, NVOCCs have the advantage of a unique relationship with carriers, which gives them an upper hand in negotiating pricing and providing better service agreements with shipping companies. Even during peak seasons, when vessel capacity is limited, NVOCCs can secure carrier space. This is especially favorable for SMEs and new businesses, whose volumes do not give them the leverage to negotiate rates. Hence, NVOCCs make the most of their long-term relationships with shipping lines and offer competitive rates and amenable service agreements, empowering small, medium, and start-up companies to compete in the international market.
4. High levels of flexibility and accessibility
Working with an NVOCC comes with the advantage of flexibility. Leveraging their understanding of carriers, NVOCCs can find vessels suitable for shipments, as and when required by a customer. A customer does not have to wait until the next suitable vessel, sailing to a particular destination. An NVOCC will have greater access to sailing schedules, enabling cargo to move faster.
Another advantage is an NVOCC’s ability to issue its own House Bill of Lading (HBL). Generally, global freight forwarders issue their own bills of lading that follow the regulations of the International Federation of Freight Forwarders Associations (FIATA). NVOCC, on the other hand, enables customers to save time by eliminating one major step from the process of shipping cargo from one destination to another.
5. Amplified operational efficiency
NVOCCs have a widespread network and robust infrastructure, which allow them to enhance operational efficiency. From seamless door-to-door handling of cargo to managing storage and accurate distribution, NVOCCs ensure shipments are transported quickly. Additionally, they have advanced facilities like tracking systems, real-time visibility of goods, and a sophisticated supply chain for customers that provide guaranteed, secure delivery.
6. An advocate for sustainability
There is an increasing focus on the reduction of carbon emissions and the adoption of eco-friendly practices. NVOCCs play a significant role in promoting sustainable shipping practices. The consolidation of shipments maximizes container utilization, which, in turn, decreases the number of vessels. This cuts back on carbon emissions per unit of cargo transported. Many NVOCCs also utilize multimodal transport, like rail or inland waterways, reducing their dependence on road transportation, hence reducing emissions.
An NVOCC has to undergo several licensing regulations to obtain its status in the global shipping industry. Having said that, they offer several benefits to customers in changing their shipping game. If you are a business owner looking to reap the benefits of an NVOCC, get in touch with us. Apart from an NVOCC license, Livro Shipping is also an international freight forwarder in Dubai. Learn more about our services here.
