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3 Key Benefits of Using an NVOCC Third-Party Logistics Provider

World Map with NVOCC Third Party Logistics Network

Posted on 03-27-2019 by Posey International

When you’re working in industry, organizing freight and logistics with the help of an NVOCC can be a major part of your professional life. From dealing with manufacturers to building other relationships along the supply chain, to getting your product on the shelves to be sold, there are many aspects of this process that can be disrupted if something goes wrong or is delayed in transit.

With the global market continuously expanding, there are many ways of getting what you need delivered to your doorstep from various locations around the world. However, organizing this stream of product can be daunting. You want to make sure your cargo gets to where it needs to go on time and cost-effectively when conducting a commercial business transaction.

As a business, you need to organize shipments coming from a variety of manufacturing agents in different locations to make it the most cost effective and timely to get on your shelves. A freight forwarder, or a non-vessel operating common carrier (NVOCC), is an individual or company that is designed to organize shipments for other businesses to receive goods from a manufacturer and get those goods to their final destination for distribution.

Using a freight forwarder or freight agent can take some of the guesswork out of getting your product from the manufacturer all the way to its final home. Here are three of the benefits of working with a non-vessel operating common carrier, or NVOCC.

Benefit #1: Streamline

A NVOCC or third-party logistics provider will group shipments from your manufacturer(s) together when they ship. This means that you’ll be getting more items at once, rather than spreading smaller shipments out over multiple days. This can help a business or an individual organize their existing inventory, create space in a warehouse, and prepare to make room for this additional product on their shelves.

Additionally, a NVOCC has the benefit of being a freight forwarder, and will take care of all the shipping logistics. You can contact them for shipping and tracking information, rather than relying on many different carriers to track your items through the shipping process.

Benefit #2: Cost

A third-party logistics provider can often be the most cost-effective way of shipping product from a manufacturer. With the global nature of trade continuing to grow, businesses are often working with others involved in their supply chain who may be operating in another country. Having air freight, trucking, and ocean freight options can help keep costs down and give a business more options for shipping their items efficiently.

Additionally, it can be difficult for people in more remote locations to navigate shipping challenges to their areas. Third-party logistics providers are literally in the business of finding the most effective methods of delivery goods everywhere in the world, and will be the best point of contact for businesses looking to ship any amount of cargo.

Third party logistics providers are often smaller operations and can have less expensive rates because of the relationships they have been able to create with transportation companies around the world.

Benefit #3: Security

A NVOCC will be responsible for your items from their origin at a manufacturer until they are delivered to their final destination, be that a warehouse or another location where they will be sold. This takes some of the logistical challenges out of the way for you. The NVOCC has already established relationships and contracts with shipping and transportation entities who will physically be moving your items.

This security means that there is a paperwork trail following all the freight in your shipment everywhere it goes. If something is lost or damaged in transit, your third-party logistics provider is responsible. This security means that, from the time your items are picked up from the manufacturer, loaded into a truck, plane, or ship, and finally delivered to your warehouse or store, there is a way of making sure you know where it is at all times.

Conclusion

A reliable freight forwarding agent will be able to work with you to get your product where it needs to go. Posey International has a team of experts who are ready to solve your project cargo or over-capacity challenges. Posey offers ocean freight, air freight, trucking, project cargo, customs brokerage, and warehousing solutions for businesses working in many diverse industries.

Contact us today for more information about cost-effective solutions to your shipping needs.