Leading NVOCC Companies in the World and Their Services
Leading NVOCC Companies in the World and Their Services
In the Indian economy, logistics is becoming increasingly important. Logistics' current contribution to the e-Commerce industry ensures the timely delivery of products right to the customer's door. Despite the accomplishments, some operational challenges are faced by logistics companies in India. To address them, the Indian government has enacted a key initiative policy known as the Multi-Modal Logistics Parks Policy (MMLPs). PM Gati Shakti - National Master Plan for Multi-Modal Connectivity has been launched by India's Prime Minister, a digital platform that will bring together 16 ministries, including railways and roads, to coordinate the implementation of infrastructure connectivity projects. This initiative will reduce freight costs, connect and integrate various modes of transportation, and aid in promoting domestic trade by saving time and money through the easy movement of cargo and goods throughout the country. The government is also working to improve the market in terms of competition, lower freight rates, and technological development barriers.
Table of Contents
Non-Vessel Operating Common Carrier (NVOCC): What Is It?
NVOCCs and Their Primary Functions
Top Leading NVOCCs of the World
Expeditors International, Seattle, United States of America
Apex Group, San Francisco, California, United States of America
C. H. Robinson, Eden Prairie, Minnesota, United States of America
OEC Group of Taiwan
Kuehne Nagel of Switzerland
On an endnote - Patang
Non-Vessel Operating Common Carrier (NVOCC): What Is It?
Large organizations and businesses frequently ship in raw materials and ship out finished goods. They either deal directly with shipping lines or use Freight Forwarders, who provide service at loading and unloading points. They can rent containers for this purpose or ship as consolidated cargo, with the costs easily recouped.
On the other hand, small business units or individuals may find it difficult to deal directly with large shipping lines and freight forwarders because they may not need the entire container to ship their goods in or out. Dealing with large corporations may be prohibitively expensive for small business units and individuals.
This is where Non-Vessel Operating Common Carriers (abbreviated NVOCC) special agencies come in. NVOCCs digital platform simplify and reduce the cost of importing or exporting cargo by acting as the customer's single point of contact. This arrangement works well for small and medium-sized businesses.
NVOCCs and Their Primary Functions
Although the terms NVOCC and Freight Forwarder are frequently used interchangeably, there are some distinctions between the two.
Non-Vessel Operating Common Carriers (NVOCC) does not own or operate ocean transport vessels, as the name implies. They instead arrange cargo transportation with ship owners, charterers, or shipping lines using their own Bill of Lading, known as the House Bill of Lading (HBL). This primary feature distinguishes it from VOCCs (Vessel Operating Common Carriers). Maersk, APL, CMA CGM, and other top VOCCs are listed below.
Customers purchase cargo or container space onboard mainline transport vessels from NVOCCs. They lease or rent space on ships and sell it to their customers. In most cases, they arrange cargo loading from the customer's facility and transportation of such cargo to the gateway ports. They are also in charge of delivering goods to the consignee at the destination. It should be noted, however, that NVOCCs deal directly with Freight Forwarders to maintain unbiased rates.
NVOCCs typically do not own warehouses, but some may have their container fleet. Some of them may even have warehouses or other forms of storage, depending on the size of their operations. They may also provide cargo consolidation, deconsolidation, and outsourced services like container cleaning and repair. Because the maritime industry is so vast, it is not without its challenges. The mechanisms and procedures are complicated to comprehend, particularly for newcomers to the shipping industry.
Many factors must be considered when shipping freight via containers, including delivering goods to a container yard or Container Freight Station (CFS), proper packing and stuffing of goods, safe passage during the journey, proper deconsolidation at the destination, and finally, clearing the goods through customs and other checkpoints. Certain businesses use NVOCCs as their intermediary to ensure that these procedures run smoothly and without incident. They remove many of the challenges by handling these processes for the clients.
Consider the following examples to get a better understanding of how they work. Despite the availability of airline offices and online booking methods, many people prefer to book their flights and hotel reservations through travel agencies or other similar organizations.
Consider the case of looking for a house to buy or rent. People frequently contact realtors or brokers rather than contacting property owners directly. These middlemen or brokers are still in high demand today because they remove the obstacles people face when using certain services.
Top Leading NVOCCs of the World
Expeditors International, Seattle, United States of America
This top US NVOCC, based in Seattle, Washington, operates globally. It has been at the cutting edge of shipping and freight forwarding since its inception in 1979. Its revenue has steadily increased, earning more than USD 8 billion in 2018. It transported 160,540 TEUs of cargo in 2019. Expeditors International works with major shipping companies such as Maersk, Evergreen Line, MSC, and others.
Apex Group, San Francisco, California, United States of America
The Apex group, founded in 1990 and headquartered in California, USA, is at the top of the leading NVOCCs. They handle over 425,000 TEUs of freight and 20,000 tonnes of air freight per year and have 600,000 square feet of large warehouse space in the United States.
C. H. Robinson, Eden Prairie, Minnesota, United States of America
C. H. Robinson is a leading NVOCC based in Minnesota, USA. They handle approximately 159,000 TEUs of freight per year, which equates to approximately 18 million shipments. They have a strong multi-modal transportation operation that helps their NVOCC operations run smoothly.
OEC Group of Taiwan
The OEC Group, headquartered in Taipei, Taiwan, is another market leader in NVOCC operations. It operates in Europe, North America, and Asia and handles approximately 149,000 TEUs of freight per year. The majority of this cargo is transported between Asia and the United States.
Kuehne Nagel of Switzerland
Kuehne Nagel International, founded in Germany in 1890, is headquartered in Schindellegi, Switzerland. Last year's statistics show they handled nearly 137,000 tonnes of freight (2019). Kuehne Nagel International is a large corporation known for its global NVOCC operations and being one of the world's leading freight forwarders and logistics operators.
On an endnote - Patang
When it comes to large projects, Patang, as a multi-model freight forwarder, may be of great assistance. We can show you the best routes and explain the various customs regulations in different countries. Our experts can also assist you in navigating legal documentation, providing as much or as little assistance as you require.
We understand how to predict problems before they occur. If you use Patang, you will benefit from a company that deals with freight forwarding daily. If you have an upcoming shipment and want to look into freight forwarding, contact Patang immediately to get a quote. Our staff will gladly answer any questions you may have.
Patang can handle the entire process and ensure your shipment is safe from start to finish.
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