When it comes to shipping goods, businesses of all types require reliable logistics partners. Logistics can be tricky. If a business is not careful, it could end up with its goods being held up at a port because the company has contracted with a bad partner who was charging more than it should have been or because that partner was not paying its bills accurately and regularly.
To carefully examine the efforts and results of all logistics flow, you need to know the difference between VOCC and NVOCC.
What is a Non-Vessel Operating Common Carrier?
Non-vessel operating common carriers (NVOCCs) are freight forwarders that arrange passage and connections between shippers and carriers. While the carrier does not own or operate the vessel, it does use its own account to ship the goods. The carrier uses its own account to keep track of its shipping activity. Because the carrier does not own or operate the vessel, the shipper does not have direct control over the vessel’s sailing and arrival dates and times. Such a service provider is ideal if the business owner wants to outsource the entire shipping process. They can also save on expenses by not having to deal with the hassle of hiring and managing staff to handle the whole shipping process. However, there are downsides as well. The business owner does not have complete control over the shipment’s shipping process since the carrier owns and manages the shipment’s transportation. If the business needs to ship large quantities of goods and needs to fast-track the shipment’s shipment process, the business owner may end up paying more than if they choose to ship the goods themselves.
What Is a Vessel Operating Common Carrier?
Vessel operating common carriers (VOCCs) are the most common type of transport service provider. This type of carrier owns and operates its own ships and uses them to transport goods between different ports. This method of transportation is also called dry transport. Dry transport is the most reliable method of transporting goods because goods are loaded and unloaded in a controlled environment on dry land. Dry transport is the most cost-effective method of transporting goods. This is because the company does not have to pay for the use of a specific vessel since the carrier owns and operates its own fleet of ships. This can save the business owner a lot of money since they are not paying for the use of a specific vessel or on a charter contract. Dry transport also allows for faster shipment process since a company does not need to wait for a specific vessel to load or unload goods. However, dry transport can take longer than other methods of transportation if a specific vessel is needed to transport the goods.
What is a Vessel Operated Registered Agent?
Vessel operated registered agent (VOO-RAP) is the most common method of transportation used by a VOCC. In this type of service, the shipper and the carrier each use their own account books. The carrier is the one that actually manages the shipment’s shipping process. It is the carrier that schedules the shipment’s voyage, and it is the carrier that hires and manages the crew members that handle the shipment’s transportation. The VOO-RAP method of transportation is the most cost-effective and efficient method of transporting goods. It is also a reliable method of transporting goods because the carrier actually owns the vessel and operates the ship. This is a safe method of transporting goods because the carrier uses its own account to track the shipment’s movement. This method is also ideal for fast-tracking a shipment since the shipper does not have to wait for the carrier’s account to be closed before the shipment’s transportation can begin.
With the increased demand for global trade, businesses need to find reliable partners to safely transport their goods. As a business owner, you need to be careful when choosing a logistics partner. Some businesses do not think about the impact it has on their company if that partner is late on payments or if the partner is unreliable or unsafe. If you want to be sure your goods will arrive safely and on time to their destination, you need to choose a partner that offers VOCC services.
ProConnect Integrated Logistics – Your Freight Forwarding Partner
There are many freight brokers in the industry, you need to choose the right partner for your shipment. Your shipment is valuable, and we ensure we treat it like ours. ProConnect Integrated Logistics gets its expertise, experience, and value from working with its group company – Redington. Over the years, ProConnect has established itself as a preferred freight forwarder and logistics partner for many companies in the UAE and Saudi Arabia, catering to a variety of industries.
If you are looking for a partner to take care of all your logistics hassles, talk to us