Globalization has lead to an increase in the integration of national markets and the interdependence of Countries worldwide have opened their boundaries for a wide range of goods, services, and commodities. Today, in a globalised economy, no nation is self-sufficient. Every nation is involved at different levels in trade to sell what it produces, in order to gain what it lacks and also to produce more effectively than their partners. Maritime history, the study of human activity at sea, covers a broad thematic element of history that often uses a global approach. Freight forwarders typically arrange cargo movement to an international destination. Also referred to as international freight forwarders, they have the expertise that allows them to prepare and process the documentation and perform related activities pertaining to international shipments. Some of the typical information reviewed by a freight forwarder is the commercial invoice, shipper's export declaration, bill of lading and other documents required by the carrier or country of export, import, or transhipment. Much of this information is now processed in a paperless environment. A freight forwarder who does not own vessel, but functions as a carrier by issuing its own bills of lading and assuming responsibility for the shipments is called an NVOCC Non Vessel Operating Common Carrier. Firm that ship cargo on behalf of its client. NVOCC functions like any other carrier, issuing its own bills of lading or air waybills.
There are numerous benefits of using a Non Vessel Operating Common Carrier. They can also help a company save time and resources because of their understanding and immense knowledge of the cargo shipping industry. This knowledge includes information on what the most effective and efficient routes of delivery are, based on specific destinations. They have expertise in most of the constituents of cargo shipping, packaging, pickup and delivery. This knowledge is institutional in providing a cargo with the best possible standards in accordance with international standards of delivery. Non-vessel operating common carriers are considered to be one of the "intermediaries" in the shipping industry. The latest law in this area has defined the NVOCC as "a common carrier which does not own or operate the vessels by which the ocean transportation is provided, and is a shipper in its relationship with the ocean carrier Latest law has defined the NVOCC as "a common carrier which does not own or operate the vessels by which the ocean transportation is provided, and is a shipper in its relationship with the ocean carrier." NVOCC operators buy space from ocean carriers for consolidated shipments from a variety of clients. Documentation, logistical planning and warehousing of cargo from the port to final destination also are taken care of as part of the services provided.
It was in 1951, when first intermodal modern day container was built and in 1955 first intermodal transport was operated. For the purpose to stream line the movement of container from origin to destination, there were intermediaries at each stage in the system. Ocean Freight Forwarder, Custom Clearance Agents, Trucking Agency, Railway Booking and Wagon Lease Agency, Container Freight Station, Port Clearance Agents, etc.
Each time of the following three stages, i.e. Inland Transportation at origin, Seaway and Finally Inland Transportation at destination, a new Bill of Lading was issued and cargo was insured. With International Trade increasing in 1970’s, efficiencies from containerisation led to trade of large volume and increased ocean carrier’s attention to ship with Full container load (FCL). That was the time when NVOCC emerged into the business. NVOCC’s are considered as one of the “intermediaries” in maritime industry. NVOCC’s went a way ahead in the business and provided end to end logistic solution even to small shippers. Business Model for NVOCC follows...
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