Difference between the functioning of Patang as an NVOCC and as a Freight Forwarder

Within the freight and shipping industry, NVOCC and Freight Forwarder are two terms that are used quite often and often confused as well because sometimes people don’t understand the meaning and purposes of both on an individual level.

In this blog, we will make you understand the definitions, meanings, purposes, and functions of both for better clarity and understanding.

NVOCC Definition

Non-Vessel Owning Common Carrier or NVOCC is a common term that you might have come across if you have any interest in the shipping industry or studying it. NVOCC is a cargo consolidator. NVOCC's operation comprises sales, stuffing, and transport of the containers to gateway ports. The bill of lading issue and overseas distribution is taken care of by the agents of NVOCC. An NVOCC signs contracts with shipping lines to guarantee the shipment of a certain number of units each year. In return, the shipping line offers favorable rates to the NVOCC. Thus, NVOCC ends to be the largest trade maker for container shipment. NVOCC serves the middle - man purpose for various shipping companies and customers to make the procedure hassle-free and quick.

Freight

Forwarder Definition

Digital freight forwarder uses digital tools that help in smooth communication flow and get status updates regarding any shipment in a short timeframe. Patang the best Digital freight forwarder company employs a completely transparent system that provides a comparison of various shippers to offer the best deal to the customers.

The freight forwarders who are making use of cutting-edge technology and world-class platforms to execute various aspects of a shipment process can be called digital freight forwarders or online freight forwarders. The old school methods of freight management are boycotted now and the new methods are being adopted.

Difference in Functions

Functions of NVOCC

1.  Lease or rent space onboard cargo or ships and sell it to their clients.

2. Loading cargo from the customer facility and then transferring it to the gateway of ports.

3. Undertake the duty of the delivery of goods to the consignee at the destination.

4. Generally, they do not own warehouses but sometimes they may provide services such as cargo consolidation, deconsolidation at the destination, container cleaning, repair, etc.

5. NVOCCs also help newbies to shipping businesses by clearing their goods through customs and other checks by guiding them on proper documentation and regulations.

Functions of a digital Freight forwarder

1. The freight forwarders help customers in quote generations. Following the digitized system now the freight forwarders upload all quotations on the platform which makes the task very easy for customers to know all price details.

2. As the system gets digitalized so does reduce the risk of errors and inaccuracies. A cloud-based platform is followed which gives easy access to stakeholders giving them easy document management.

3. A good freight forwarder keeps a track of all shipments. Timely and correct tracking serves in locating the exact cargo location which further helps to predict the nearest approximate time for cargo to reach the destination. Digitization has also helped in locating the live location of cargo that gives minute by minute view of it.

4. Keeping the competitive analysis in mind in the shipment industry digitization has been helping freight forward to stay in the race. As maximum transactions are handled online by the customers so maximum freight forwarders are adopting digital strategies to understand client behavior and serve them the best.

Difference in Advantages

Advantages of choosing Patang as an NVOCC

Ease of doing business – With the availability of NVOCCs, businesses don’t need to worry about dealing with large shipping lines directly for the transportation of their goods. All businesses don’t have equal bargaining power therefore the desired outputs may get difficult to be achieved from large shipping lines. With the help of NVOCCs, it gets easy to handle long-drawn processes.

Lower Rates than Large Shipping Lines – The best benefit of NVOCCs is they offer businesses a lower rate than a shipping line. Now, how does this happen? NVOCCs take on lease big spaces from shipping lines at very competitive rates which after savings are later passed on to the clients at reduced rates which is just out of any common owner’s approach if they contact the same shipping line directly. NVOCCs cater to their shipping needs and provide them with the flexibility of partnering with a smaller organization rather than a large shipping line. By acting as a middleman, the NVOCCs facilitate better rates, and provide better services without any unnecessary bureaucracy, making the entire process simpler for small to mid-size companies.

Personalized Service – NVOCCs offer seamless and personalized service to their clients, unlike a large shipping company that usually has a vast customer base. They can advise several shipping options since they work with different ocean transport carriers. These days, NVOCCs also provide online tracking facilities that help businesses know where their cargo is during transit. Keeping in the loop great advantages through the large ratio of business that NVOCC achieves from the clients they provide personalized services to them which often large shipping lines are never able to give to their customers. This kind of relationship often helps in developing more trust and goodwill with better scopes for business in the future. Better logistic functions become a cherry on the cake for the customers. Better shipping routes and more intricate tracking service makes them stand even better in the eye of customers.  

Efficient Network with Local Bodies

– NVOCCs usually maintain good contacts with local bodies such as trade unions, Customs, logistics companies, etc. A diligent network can help to get the work done faster and with minimum interruption. Usually, NVOCCs maintain a healthy relationship with local associations consisting of local transportation service providers, trade unions, Port Customs, etc. An enhancement in the local network system helps the business to go seamlessly without any disruptions and far more quickly. As NVOCCs are mostly marked important in maintaining great connectivity with good contacts, therefore, they are less prone to come across problems associated with transportation or trade unions, thus eliminating risks faced by large shippers usually.

Ease of Documentation – NVOCCs issue the Bill of Lading themselves. This Bill of Lading is

also known as the House Bill of Lading or HBL. HBL makes the process of

documentation much easier for the shipper. As the process gets more simplified

it enables the NVOCC to provide the customers with necessary documents

themselves, thus making the process of documentation much more convenient to

handle. Being a middle man in the whole process NVOCCs simplifies logistics

and provides several benefits to its customers

 

Advantages of digital freight forwarding with Patang

At Patang, the mission is to digitize the logistics industry. They empower organizations with a digital presence to handle trade and logistics to accelerate business growth, optimize costs and enhance customer experiences.

They are recognizing the need to create new business models and solutions which could cater to the changing demands of the customers. They understand eco-system needs and hence took a step forward to explore solutions through business process-model innovation by utilizing enabling technologies.

With Patang’s digital platforms’ data analytics & visibility, organizations can create fine-tuned, agile supply chains built on intelligent, data-driven decisions around customers, markets, and, most importantly, “profitability”.

The difference in terms of choosing Patang 

As NVOCC for Supply Chain

Patang has become a global platform that brings the most convenient mode to book shipments, confirm bookings, and shipping instructions, manage BLs and documents, and explore statements of accounts, all in one place. They facilitate you with an immediate digital presence and online capability that translates to elevated revenue and cost savings. With their web, mobile, and WhatsApp interfaces, the

Patang platform helps customers and shippers to easily track, transact, and manage all their shipments.

Patang’s Global Digital Logistics The platform provides the perfect solution for NVOCCs to allow their customers to search and book containers online. Our platform makes managing shipments easy.

As a Freight Forwarder

1. Generate Quick Quotations -Patang gives its clients a wide-angle view of all logistic processes where customers can compare quotes easily without any assistance. Patang helps you in managing the best possible prices, proper customer follow-ups, and a customized website.

2. Safe Data Storage – As digitization is now working miracles in the shipping industry so does it allowing successful and safe storage of data. It facilitates safe storage of all data that is related to the shipping process. This further helps in increasing goodwill among stakeholders and the company.

3. Better Tracking- Now the customer and the company both have proper knowledge of cargo status, and they can have a clean witness of it on their screens through this tracking system. The time-to-time knowledge of cargo shipping status helps to develop a bond of trust among both customers as well as the company.

4. Auto Invoice Generation- Patang facilitates you with the help of digitization to become an up-to-date client who has all the hang of auto-generation of invoices. Now a customer can completely depend on autopilot mode sought payment technique which is more accurate and efficient.

Conclusion

It has become essential to stay as close and connected to the customers and engage with them in convenient, automated, and interactive ways. The Patang team is constantly building path-breaking products which can bind the logistics community at a global level. They are focused on digitizing the logistics industry by creating more customer-connected applications and bringing end-to-end automated processes to save operational costs for all stakeholders.

Connect your business digitally with their global end-to-end supply chain platforms and offer digital solutions to your customers. Patang's digital platform delivers best-in-class customer experiences with its state-of-the-art solutions for Freight Forwarding, NVOCC, and Feeder businesses.

So, what are you waiting for? Contact them today and get ready for fast and easy hassle-free shipments. Patang helps its customers take responsibility by empowering them to digitize transactions, optimize processes and improve profit margins through their next-generation platforms.