From SCDigest's On-Target e-Magazine
- March 5, 2013 -
Global Logistics News: Who is Up and Who Is Down Among Non-Vessel Operating Common Carriers?
Filling Role Between Freight Forwarders and Ocean Container Lines, Volumes Rose 3.2% in 2012, New Analysis Finds; Expeditors Sees Volumes Drop 4.9%
SCDigest Editorial Staff
Non-vessel operating common carriers (NVOCCs) are similar to traditional freight forwarders, but with some important differences, mostly in terms of taking more responsibility than a traditional freight forwarder can.
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The NVOCC in the top 10 in terms of total TEU volume with the highest growth rate last year was Schenkerocean Limited, which saw an 17.4% increase in volumes for 21st place on the growth list.
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What Do You Say?
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Often referred to as "shipless shipping lines," an NVOCC acts almost like a common carrier, with the exception that an NVOCC does not actually operate the vessel it uses to move the container. Instead, the NVOCC brokers space on existing container ships and, using the aggregate volume from all its clients, negotiates discount rates that in many cases will allow the NVOCC to offer lower rates to shippers than those offered by the vessel operator themselves.
In addition, an NVOCC can and sometimes does own and operate its own or leased containers (a pure forwarder usually does not), and in certain areas is accorded the status of a "virtual"carrier." In other cases, an NVOCC also accepts all liabilities of a carrier, depending on jurisdiction.
Shippers might use an NVOCC because of that damage liability, the sometimes lower rates, ease of doing business in some cases versus the ocean carriers, and more. The NVOCC will generally also provide the functions of a freight forwarder as well in terms of managing end-to-end logistics and customs clearance.
There are literally hundreds of NVOCCs, and recent analysis shows the market has a lot of dynamics amongst the players.
Thom Williams, managing director at transportation consulting and investment firm Amherst Alpha Advisors, recently produced an analysis of the changes in volumes (in TEU equivalents) among the top 100 NVOCCs in 2012 versus 2011.
All told, Williams says, the world's 100 highest-volume NVOCCs saw a 3.2% increase in their aggregate TEUs, closing out 2012 with about 4.8 million in TEU-equivalent shipments, or about 151,000 more TEUs than in 2011.
Williams lists the top 100 global NVOCCs for 2012 by TEU volume in his full report, which can be found here: The Shifting Seas of Global NVOCCs.
Below, we present a graphic of the top 25 as an excerpt of Williams' full list, led by number 1 Expeditors International, at 387,500 TEUs for the year. That is somewhat ahead of number 2 Blue Anchor Line at 333,000, before a big drop off to number 3 Apex Shipping at 211,000 TEU equivalents.
Top 25 NVOCCs by TEU Volume in 2012
Source: Amherst Alpha Advisors
(Global Supply Chain Article Continued Below)
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