Going Global
If a company plans to go global there a few steps in order to accomplish such a feat first it will need to either consult with a freight forwarder or a NVOCC also known as a Non-vessel operating common carrier. Both of these work hand in hand as Ocean Transportation Intermediaries in the process of having ones merchandise go abroad. With that said an Ocean Transportation Intermediary is either an ocean freight forwarder or a non-vessel operating common carrier (""NVOCC""). An ocean freight forwarder is “an individual or company in the United States that dispatches shipments from the United States via common carriers and books or otherwise arranges space for those shipments on behalf of shippers.” Ocean freight forwarders will also have services of preparing and processing important documentation and performing related activities pertaining to those shipments. On other hand a NVOCC is “a common carrier that holds itself out to the public to provide ocean transportation, issues its own house bills of lading or equivalent document, but does not operate the vessels by which ocean transportation is provided, and is a shipper in relation to the involved ocean common carrier.” The NVOCC’s performs many of the documentation duties, which Freight Forwarder also do; however, the primary task of the NVOCC is to consolidate the freight. NVOCC’s take possession of the cargo and consolidate the LCL (less than container load) shipments into full container loads (FCL). This container is given to the ocean carrier, who will then issue a bill of lading (the key to the cargo- contract to move freight) for the shipment. On the other hand Freight Forwarders handle ocean and ground transportation for shippers however “do not take legal possession of the cargo being shipped.” Freight forwarders prepare the necessary documents “(bills of ladings/ certificate of origins/ quality-SGS inspections/Letters of credits)” for cargo involved. So once a company has successfully consulted either one of these two ocean transportation intermediaries its ready to take it to the next level of having its self go global.
Sources:
http://www.fmc.gov/home/faq/index.asp?f_category_id=17#201

Comments