Despite the nature of the industry, acquisition of goods in bulk results in a cost-benefit as the same applies to book spaces in ships. A shipper that has a small cargo or a container with less load can get into the savings through a logistic booking with the middlemen. They are referred to as non-vessel operating common carriers, and they do not operate the ship. Instead, they book the space in the vessel and make sales of small quantities. They also make consolidation for freight transport with the standard containers.
One of the characteristics of a non-vessel operating common carrier is intermediary. They do not operate the ships. Instead, they make bookings for the entire LCLs and various combinations to have a full container that will be accepted for shipment. The vessel to be shipped is put under one bill upon landing (Clott, 2011). Most carriers sign contracts with huge companies to make reservations for spaces in advance. When in need of the area for shipment, it may be challenging to get one. However, NVOCC act as intermediaries and are experts in looking for spaces for the delivery of all cargo size.
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Another characteristic of non-vessel operating carriers is that they act as a freight forwarder. That allows them to offer financial liability for the good under shipment due to the losses and damages that may occur due during the transportation is in progress. That makes them flexible, depending on the various nature of the business (Venkatraman, 2015). International shipment varies from one country to another. NVOCC has the flexibility characteristic that is of a diverse carrier base, and they are in a position to leverage it in finding capacity or another favorable process.
References
Clott, C. (2011). Ocean Freight Intermediaries: An Analysis of non-vessel Operating Common Carriers (NVOCC’s) and Maritime Reform. Transportation Journal, Vol. 40 , no 2. Pp. 17-26.
Venkatraman, V. (2015). Study on the Service Offered by Non-Vessel Operating Common Carriers. Journal of Industrial Engineering Research and Development, Vol. 6 , no. 2. Pp. 1—11.
