Freight forwarding agents vary, with a diversified variety of ocean freight services typically being delivered by various types. This involve everything from logistical support, customs brokerage and coordination of cargo to shipping, monitoring and price monitoring.
The transport of freight through foreign waters is a tricky business. The rules and tariffs for freight vary from country to country, and occasionally, even from port to port. That is why logistics providers are such valuable assets to the fluidity of any supply chain using maritime transport, especially those who also manage customs brokerage.
Freight forwarding agents also vary, with various types typically offering a wide range of services for ocean freight. Daasomlogistics is an Ocean Transportation Intermediary (OTI) and a licensed common carrier operating non-vessel (NVOCC), for instance. There are also OTIs that are purely forwarders of freight. There are also vessel-operating common carriers (VOCCs) and beneficial cargo owners (BCOs), in addition to NVOCCs and conventional forwarders.
The respective functions of strict ocean forwarders and NVOCCs vary only marginally, but are not conclusive in those nuances. The complexity of a company’s work in some instances straddles the line between the positions of NVOCC and conventional freight forwarder, such as daasomlogistics.
Intermediaries of Ocean Transportation
Ocean Transportation Intermediaries (OTIs) are identified by the Federal Maritime Commission (FMC) in accordance with the Shipping Act of 1984 as either “Ocean Freight Forwarders” or “Non-Vessel Operating Common Carriers.” OTIs act as true travel agents for all cargo shipped across the globe to ensure that all the correct goods and products inside a freight shipment hit their rightful destinations in a timely manner.
It is cheaper to ship cargo through waterways than to do so by air. That’s why, at one point or another, most of the world’s freight is sea-bound, during its journey from manufacturer to retailer, and finally, to the customer.
Generally speaking, the following are tasked with OTIs:
- Coordinating cargo movement through each step of the supply chain
- Dispatching domestic exports outbound
- Reserving cargo space on behalf of shippers
- Drafting and tracking documents involved in all phases of forwarding
The Ocean Freight Systems at Daasomlogistics Worldwide
While VOCCs may be able to charge less for cargo space, it is known that each week they operate only one sailing per port. When shippers run low on stock, they presumably desperately need their shipment, not at the end of an arbitrary seven-day waiting period.
NVOCCs such as Daasomlogistics operate through numerous shipping partnerships with several carriers. So, in cases where a shipper genuinely runs light on inventory and needs rapid delivery, the easy access of an NVOCC to cargo space and sailing options becomes invaluable.
Daasomlogistics knows best: full load of containers (FCL) and shipping load of containers (LCL)
To ensure the most economical and time-efficient mode of transportation for your shipment, forwarders should always track FCL and LCL rates. The weight and density of your cargo should also be taken into account, as it could be reason enough for a change from one container size to another.
To that point, a small FCL container could be an economical option if your shipment is especially dense. However, for a less-dense shipment likely to be better off lumped into an LCL shipment within a larger container, that same size container would not be smart to use.
The above is real, since about 90 percent of a 40-foot FCL container still costs a 20-foot FCL container, making space in the 40-foot container even more desirable for those seeking additional cargo space. Only in high-density freight cases (as in brick or tile) is the smaller container option feasible.
Another frequently ignored consideration concerns unloading costs when choosing between FCL or LCL shipping. After such charges are taken into account, smaller shipments teetering on the verge of being / appearing cheaper using LCL will actually end up costing more.
The entire container is typically delivered to the customer at their warehouse when dealing with an FCL shipment, and the goods are unloaded at the delivery point. There is a mix of importers associated with LCL, so the shipment must go from the terminal to a container freight station (CFS) where it is combined or segregated, depending on each importer, until it is transported to its respective customer and/or final destination.
At the time the LCL shipment is picked up from the CFS, the cost of this service is paid and is not included in the cost of ocean freight. The costs of using the LCL service can be high and outweigh the savings.
Our logistics experts at Daasomlogistics diligently keep watchful eyes on FCL and LCL prices and leverage long-standing relationships with different shipping lines, even during hectic peak seasons, to ensure the best shipping rates for your cargo.