Top 5 Ways An NVOCC Can Help Small to Midsized Shippers with International Transportation

If you are a small to midsized shipper, a full service Non-Vessel Operating Common Carrier (NVOCC) can be the solution to your unique international transportation challenges. NVOCCs have contracts with a diverse mix of steamship carriers, allowing them to offer benefits of particular value to the small and midsized business market.

Challenges for small and midsized businesses:

• A logistics department of just a few people—or only one person
• Unable to obtain competitive, consistent rates or capacity due to lower shipping volumes
• Treated as a small fish in a big sea when contacting carriers directly
• Lacking technology or manpower (or both) to properly track cargo through transit

Successful NVOCCs are experts at managing the entire process from origin to final delivery. They are empowered to act on your behalf, negotiate directly with steamship lines for competitive pricing, and use  a global resource network to facilitate a smooth transition through customs, to ground transportation, and into the warehouse.

Here are the top 5 reasons you should use an NVOCC:

1.   Price Stability

International shipping rates increased six times in 2013, either by a general rate increase (GRI) or peak season surcharge (PSS). Rate volatility has continued in 2014:

• January 6^th PSS — rate increase of $100–150 per 40’ container
• January 15^th GRI — rate increase of $300 per 40’ container
• March 15^th GRI – rate increase estimated at $200-$250 per 40’ container
• April 15^th GRI — rate increase of $300 per 40’ container

Pricing becomes even more of a question mark when shipping LCL (Less than Container Load). NVOCCs specialize in brokering LCL shipments, ensuring a competitive price.

2.   Capacity

Many carriers have contracts with large companies reserving space far in advance, so when you need space, it may be difficult to come by.

NVOCCs are experts at finding capacity for shipments of all sizes.

3.   Flexibility

Depending on your business, your international transportation needs may vary from month to month. NVOCCs have the flexibility of a diverse carrier base, and can leverage it to find capacity or more favorable pricing.

4.   Service

Service and communication are paramount in supply chain transportation. A trusted NVOCC partner using Tier 1 technology can provide tailored workflows and reporting, based on individual shipper needs, and will maintain communication to ensure smooth delivery.

5.   Visibility

Global transportation technology means a comprehensive view on the up-to-the-minute status of all products, at all times. Consistent, proactive shipment communication from hands-on customer service representatives is crucial to ensure shippers can get their products to market and meet client demand.

What sets LEGACY apart in international transportation?

Our extensive global presence means that we can pick up and deliver your goods virtually anywhere in the world. LEGACY Supply Chain Services and our partner agent network service over 190 countries throughout the world, allowing us to continually provide personal service and tailored solutions with a global reach

• Extensive experience with shipping, Customs & border crossing, and distribution from Asia and Europe into the United States
• Part of one of the largest NVOCC forwarder networks in the world. This partnership provides our customers with options for steamship carrier pricing and capacity.
• C-TPAT (Customs-Trade Partnership Against Terrorism) Certified
• FTZ (Foreign Trade Zone) administrator

For more information on our international transportation solutions, visit our International Transportation page.