Comparing NVOCC and Freight Forwarder: Which one is right for you?

The Non-Vessel Operating Common Carrier (NVOCC) and the Freight Forwarder are the two most common modes of international shipping for businesses. Non-vessel-operating common carrier (NVOCC) services provide a container booking platform and cost-effective shipping alternatives. However, freight forwarders make it possible for cargo visibility and benefit from their extensive business knowledge. 

To decide which option is best for your individual shipping needs, you must first be aware of the similarities and distinctions between the two. In this piece, we will examine the role of NVOCC digital platforms in future logistics and compare and contrast them with those of freight forwarders.

Table of content -

1. NVOCC and Its Advantages for Shipping Goods

• Advantages of Using NVOCC

• Containers Booking Platform

• Cost Savings

• Flexibility In Shipping Options

2. Freight Forwarder and Logistics Advantages

• Advantages of Using Freight Forwarder

• Cargo Visibility

• Expertise and Industry Knowledge

• Full-Service Offerings

3. Comparing NVOCC and Freight Forwarder

• Shipping Requirements

• Spending Limits

• Customer Service Needs

4. Transform Your Supply Chain Management with Patang

5. In A Nutshell

NVOCC and Its Advantages for Shipping Goods

Non-Vessel Operating Common Carrier (NVOCC) is a type of shipping that facilitates the transportation of commodities for companies that do not own their boats. National and international ocean transportation companies (NVOCCs) provide shipping services by chartering ship space from vessel operators and selling it to consumers.

• Advantages of Using NVOCC

• Containers Booking Platform: One of the main benefits of using an NVOCC is the ability to use a container booking platform. As booking and tracking shipments for consumers can be made on the same platform, efficiency in the shipping process is increased. Businesses can improve their supply chain efficiency and save time by using NVOCC's container booking platform.

• Cost Savings: Saving money is another benefit of using an NVOCC. As a result of their relationships with vessel operators, NVOCCs can negotiate lower prices than traditional shipping methods. That can be a huge money saver for companies, especially those who always send lots of stuff.

• Flexibility In Shipping Options: NVOCCs provide more shipping alternatives due to their flexibility. NVOCCs, in contrast to vessel operators, are not restricted to a set timetable or routes; therefore, they can better accommodate their customers' shipping requirements. 

This allows companies to select the optimal shipping solution, whether with a shorter transit time, a preferred port of departure or arrival, or a more cost-effective route.

Freight Forwarder and Logistics Advantages

In the logistics industry, a Freight forwarder is a middleman who coordinates shipments between a shipper and several carriers. When moving items from one location to another, they are accountable for the entire supply chain, from warehousing and handling to customs clearance.

Depending on the client's needs, freight forwarders can use various shipping methods, such as air, ocean, or ground transit. In addition to ensuring the timely and secure delivery of your shipment, they will also handle the necessary documentation, such as customs forms and insurance documents.

• Advantages of Using Freight Forwarder

• Cargo Visibility: Utilizing a Freight Forwarder allows you to keep tabs on your shipment at all times, which is a huge time saver. These days, it's easy to keep tabs on where your merchandise is and its current state, thanks to high-tech tracking systems and digital platforms. 

This is especially useful if you're transporting something long distances because it allows you to see problems early on and take corrective measures.

• Expertise and Industry Knowledge: Another major benefit of hiring a freight forwarder is access to their extensive knowledge and experience in the field. 

Freight Forwarder has extensive knowledge of the shipping sector and can assist you in avoiding potential problems by navigating the many trade agreements and customs requirements. In addition to assisting with compliance and customs clearance, they may help you locate the most cost-effective and expedient shipping solutions.

• Full-Service Offerings: Freight Forwarder provides various services to their customers, including warehousing, insurance, packaging, and creating, in addition to their expertise and knowledge of the sector. 

Instead of coordinating with various vendors, you can take care of your shipping needs with a single company. Freight forwarders are a crucial ally for companies seeking growth and expansion because of the advice and insights they can provide to improve the efficiency of the supply chain and save operational expenses.

Comparing NVOCC and Freight Forwarder

Both NVOCCs and Freight Forwarders play an important role in the international shipping business, but these two types of companies operate and provide their services differently. Regarding arranging the movement of products from one place to another, NVOCCs and Freight Forwarders can be useful resources for shippers and carriers. 

Freight Forwarders work as agents for their clients and organise transportation services provided by carriers, while NVOCCs own and operate their own containers and supervise cargo movement.

Considerations such as transportation demands, budget, and desired level of customer care are crucial when deciding between an NVOCC and Freight Forwarder.

• Shipping Requirements: The first consideration must be the unique shipping demands of the goods. While NVOCCs are a good choice for large shipments needing their own containers, freight forwarders are a better option for smaller shipments that don't require one.

• Spending Limits: Spending limits is another crucial factor to think about. Especially for large shipments, NVOCCs may save you money, although Freight Forwarders sometimes have additional payment alternatives and can negotiate better rates with carriers because of their volume.

• Customer Service Needs: When deciding between an NVOCC and a Freight Forwarder, it is necessary to consider the quality of customer service required. While NVOCCs may take a more hands-on approach with a devoted team monitoring the entirety of the shipment, freight forwarders may take a more consultative stance, offering advice and help but ultimately relying on carriers to complete the conveyance.

Transform Your Supply Chain Management with Patang

The ability to rely on and optimise one's supply chain is critical in today's fast-paced corporate climate. Patang provides a solution by providing businesses with a robust and cutting-edge platform for optimising their supply chains. Patang's web-based, cloud-hosted architecture makes it suitable for enterprises of any size, anywhere in the world, and on any device.

Inventory management technologies that cut costs and improve efficiency are available to businesses using Patang. Having the means to fulfil orders is crucial for several reasons, including keeping good customer relations and avoiding damage to the company's reputation. 

Patang aids organisations in accomplishing this goal by furnishing them with real-time data and actionable insights, facilitating rapid and accurate decision-making.

Freight forwarders and NVOCCs both play important roles in the logistics business, although they do so in different ways. Freight Forwarders offer a full logistical solution, from documentation through customs clearance and door-to-door delivery, while NVOCCs specialise in cost-effective and efficient cargo transit.

Your company's requirements will determine whether you need an NVOCC or a Freight Forwarder. NVOCC may be the best option if you're looking for a simple and inexpensive solution. However, a Freight Forwarder may be preferable if you're looking for a more all-encompassing and complete logistics service. Ultimately, it's crucial to think through your company's requirements and make a well-informed choice.