LlLeraLure 8evlew non vessel CperaLlng Common Carrler

1

Introduct|on
CloballzaLlon has lead Lo an lncrease ln Lhe lnLegraLlon of naLlonal markeLs and Lhe
lnLerdependence of
CounLrles worldwlde have opened Lhelr boundarles for a wlde range of goods servlces and
commodlLles 1oday ln a globallsed economy no naLlon ls selfsufflclenL Lvery naLlon ls
lnvolved aL dlfferenL levels ln Lrade Lo sell whaL lL produces ln order Lo galn whaL lL lacks
and also Lo produce more effecLlvely Lhan Lhelr parLners
MarlLlme hlsLory Lhe sLudy of human acLlvlLy aL sea covers a broad LhemaLlc elemenL of
hlsLory LhaL ofLen uses a global approach lrelghL forwarders Lyplcally arrange cargo
movemenL Lo an lnLernaLlonal desLlnaLlon Also referred Lo as lnLernaLlonal frelghL
forwarders Lhey have Lhe experLlse LhaL allows Lhem Lo prepare and process Lhe
documenLaLlon and perform relaLed acLlvlLles perLalnlng Lo lnLernaLlonal shlpmenLs Some
of Lhe Lyplcal lnformaLlon revlewed by a frelghL forwarder ls Lhe commerclal lnvolce
shlppers exporL declaraLlon blll of ladlng and oLher documenLs requlred by Lhe carrler or
counLry of exporL lmporL or LranshlpmenL Much of Lhls lnformaLlon ls now processed ln a
paperless envlronmenL
A frelghL forwarder who does noL own vessel buL funcLlons as a carrler by lssulng lLs own
bllls of ladlng and assumlng responslblllLy for Lhe shlpmenLs ls called an nvCCC non vessel
CperaLlng Common Carrler llrm LhaL shlp cargo on behalf of lLs cllenL nvCCC funcLlons llke
any oLher carrler lssulng lLs own bllls of ladlng or alr waybllls

1here are numerous beneflLs of uslng a non vessel CperaLlng Common Carrler 1hey can
also help a company save Llme and resources because of Lhelr undersLandlng and lmmense
knowledge of Lhe cargo shlpplng lndusLry 1hls knowledge lncludes lnformaLlon on whaL Lhe
mosL effecLlve and efflclenL rouLes of dellvery are based on speclflc desLlnaLlons 1hey have
experLlse ln mosL of Lhe consLlLuenLs of cargo shlpplng packaglng plckup and dellvery 1hls
knowledge ls lnsLlLuLlonal ln provldlng a cargo wlLh Lhe besL posslble sLandards ln
accordance wlLh lnLernaLlonal sLandards of dellvery nonvessel operaLlng common carrlers
are consldered Lo be one of Lhe lnLermedlarles ln Lhe shlpplng lndusLry
1he laLesL law ln Lhls area has deflned Lhe nvCCC as a common carrler whlch does noL own
or operaLe Lhe vessels by whlch Lhe ocean LransporLaLlon ls provlded and ls a shlpper ln lLs
relaLlonshlp wlLh Lhe ocean carrler
LaLesL law has deflned Lhe nvCCC as a common carrler whlch does noL own or operaLe Lhe
vessels by whlch Lhe ocean LransporLaLlon ls provlded and ls a shlpper ln lLs relaLlonshlp
wlLh Lhe ocean carrler
LlLeraLure 8evlew non vessel CperaLlng Common Carrler
2

nvCCC operaLors buy space from ocean carrlers for consolldaLed shlpmenLs from a varleLy
of cllenLs uocumenLaLlon loglsLlcal plannlng and warehouslng of cargo from Lhe porL Lo
flnal desLlnaLlon also are Laken care of as parL of Lhe servlces provlded

lL was ln 1931 when flrsL lnLermodal modern day conLalner was bullL and ln 1933 flrsL
lnLermodal LransporL was operaLed lor Lhe purpose Lo sLream llne Lhe movemenL of
conLalner from orlgln Lo desLlnaLlon Lhere were lnLermedlarles aL each sLage ln Lhe sysLem
Ccean lrelghL lorwarder CusLom Clearance AgenLs 1rucklng Agency 8allway 8ooklng and
Wagon Lease Agency ConLalner lrelghL SLaLlon orL Clearance AgenLs eLc

omponents
Lach Llme of Lhe followlng Lhree sLages le lnland 1ransporLaLlon aL orlgln Seaway and
llnally lnland 1ransporLaLlon aL desLlnaLlon a new 8lll of Ladlng was lssued and cargo was
lnsured WlLh lnLernaLlonal 1rade lncreaslng ln 1970's efflclencles from conLalnerlsaLlon led
Lo Lrade of large volume and lncreased ocean carrler's aLLenLlon Lo shlp wlLh lull conLalner
load (lCL) 1haL was Lhe Llme when nvCCC emerged lnLo Lhe buslness nvCCC's are
consldered as one of Lhe lnLermedlarles" ln marlLlme lndusLry nvCCC's wenL a way ahead
ln Lhe buslness and provlded end Lo end loglsLlc soluLlon even Lo small shlppers 8uslness
Model for nvCCC follows as shown below


LlLeraLure 8evlew non vessel CperaLlng Common Carrler
3

AL Lhe orlgln a nvCCC plays a role of consolldaLor as well as packaglng agency whereby
Lhey Lake parL parcels from varlous shlppers and consolldaLe ln one full load conLalner
lncrease ln efflclency and low Llme Lurn ouL Llme ln LransporLaLlon from lnland depoLs Lo
gaLeways of porL AnoLher concepL of MulLlclLy ConsolldaLlon (MCC) ls also leveraged by
nvCCC's Cnce Lhe cargo ls placed ln ConLalner lrelghL SLaLlons (ClS) or ware house aL
lCu's Cargo Lo a same desLlnaLlon ls consolldaLed ln one lCL ln Lhls way nvCCC's fllled a
LransporLaLlon nlche parLlcularly for lnland porLs as consolldaLor for smaller shlppers
lgnored or abandoned by Lhe ocean carrler

-I 8||| of |ad|ng nvCCCs releases MuL1lMCuAL Pouse 8lll of Ladlngs (P8L) once Lhey
run a doorLodoor servlce 1hey lssue Lhls P8L agalnsL shlpper/flnal conslgnee whllsL Lhe
SLeam Shlp Llne lssues a MasLer 8/L (M8L) agalnsL Lhe forwarder aL orlgln and Lhe forwarder
aL desLlnaLlon nvCCCs play an lmporLanL parL ln lnLernaLlonal Lrade lL ls lmporLanL LhaL
safeguards are ln place Lo ensure Lhe securlLy of blank 8llls of Ladlng and Lhere are sysLems
ln place Lo Lrack Lhem lf Lhey are mlsused
A nvCCC who does noL charLer an enLlre shlp concludes conLracLs of carrlage wlLh several
shlppers/frelghL forwarders concernlng lndlvldual packages or conLalners When Lhe nvCCC
has accumulaLed an approprlaLe number of orders he concludes a conLracL of carrlage wlLh
a carrler who acLually wlll perform Lhe LransporLaLlon 1he nvCCC makes money by
obLalnlng a beLLer prlce from Lhe carrler Lhan he (Lhe nvCCC) charges hls shlppers 1he maln
duLy of a carrler conslsLs of Lhe uncondlLlonal and unllmlLed obllgaLlon Lo LransporL Lhe
goods from Lhe porL of loadlng Lo Lhe porL of desLlnaLlon 1he commlLmenL Lo fulfll Lhe
LransporL obllgaLlon ls Lhe only and declslve crlLerlon for a carrler

1he sa||ent features of -I (Lxports Sea) are as be|ow
8eglsLer lndlvldual shlpmenL Shlpplng 8lll wlse
Club mulLlple shlpplng bllls under one P8L
Club mulLlple P8Ls under one MasLer 8/L
repare and prlnL MasLer and Pouse 8lll of Ladlng
Speclfy 8/L Charges for varlous charge heads for boLh paymenL and recelpLs and ln
any currency
repare Challan reporL for P8L
repare and send Consol ManlfesL
A unlque AlerL sysLem whlch updaLes Lhe user on currenL sLaLus of shlpmenLs based
on shlpmenL llfe cycle deflned 1hese alerLs can be malled dlrecLly Lo Lhe cusLomer
repare and send Shlpplng Advlce Lo cusLomer
repare and rlnL ConLalner Load lan (CL)
LlLeraLure 8evlew non vessel CperaLlng Common Carrler
4

Shlpped Cn board (SC8) or ShuL CuL reporL preparaLlon
1rack LranshlpmenL deLalls of conLalners aL varlous Cargo Pubs
varlous CusLomer Servlce reporLs Can be senL dlrecLly Lhrough emall from sysLem
repare and prlnL varlous Lypes of lnvolces eg Servlces and lrelghL 8rokerage
LlfLlng ShlfLlng eLc lncludlng Lo Cverseas AgenL
1he sa||ent features of -I (Imports Sea) are as be|ow
8ecord varlous deLalls for lmporL ShlpmenL
MalnLaln varlous sLages of shlpmenL ln lLs llfe cycle
A unlque AlerL sysLem whlch updaLes Lhe user on currenL sLaLus of shlpmenLs based
on shlpmenL llfe cycle deflned 1hese alerLs can be malled dlrecLly Lo Lhe cusLomer
eep Lrack of varlous charges relaLed Lo a shlpmenL eg lrelghL luel Surcharge Lx
Works eLc
repare prlnL and send Cargo Arrlval noLlce (CAn) Lo lmporLer for collecLlon of
charges whlch are llnked Lo AccounLs
8ecelve or Send uellvery Crder (uC) as Lhe case may be
Checks for shlpmenL under 8ank 8elease Crder (88C) and conLrols lssue of uC
Cverseas AgenLs lnward lnvolce/CredlL/ueblL noLe can be booked lnLo sysLem for
each shlpmenL wlLh proflL sharlng
A compleLe lorelgn 8emlLLances module for paymenL and recelpLs wlLh 88l and bank
coverlng leLLers/forms
1he sa||ent features of -I (Accounts) are as be|ow
CompleLe accounLlng package Lo sulL speclflcally Lhe needs of frelghL
forwardlng/nvCCC buslness wlLh mulLl locaLlon and mulLl dlvlslon acLlvlLy
Managlng Lhe accounLs of lndlvldual proflL cenLres comblned wlLh common
accounLlng books
repare/ vlew Lrlal balance/ proflL and loss/ balance sheeL for lndlvldual proflL
cenLres as well as enLlre company
repare and prlnL all Lypes of vouchers eg Cash/8ank paymenL and recelpLs and
!ournal vouchers
8ecelpLs and paymenLs can be booked agalnsL parLlcular lnvolces wlLh 1uS deducLed
deLalls
8ook 1rade 8llls le relaLed Lo a parLlcular shlpmenL eg 1ransporL or lrelghL ueblL
noLes
laclllLy for non 1rade bllls where Lracklng can be had for each lLem ln a blll eg
sLaLlonery lLems 1elephones eLc wlLh separaLe recordlng of Servlce 1ax Charged
CompleLe Cheque 8ook ManagemenL module for Lracklng of checks bank wlse and
also cancelled and posL daLed cheques
Merge uaLa of dlfferenL 8ranches ln Pead Cfflce
LlLeraLure 8evlew non vessel CperaLlng Common Carrler
3

CompleLe SecurlLy module for rlghLs of each user Lo operaLe a cerLaln parL of
sofLware
uaLa can be exporLed Lo 1ALL? accounLlng ackage

Jork|ng of -I#s at Iar|ous stages

Jarehous|ng In p|ant Log|st|cs


8ecelpL

unloadlng lnLo warehouslng

lnspecLlon

SLorage lncludlng sLacklng

reservaLlon

Crder execuLlon

ulspaLch and loadlng lnLo own/cusLomers' vehlcle


ard Management


8ecelpL of Cargo

lnspecLlon

SLorage

lnvenLory ManagemenL

Crder execuLlon

8llllng

ulspaLch Lo CusLomers


Ia|ue Added Serv|ces


unpacklng/8epacklng

Cradlng / SorLlng
LlLeraLure 8evlew non vessel CperaLlng Common Carrler
6


8reakbulk

Labelllng / 8ar Codlng

PeaL Seallng / Shrlnk Wrapplng

Assembly relaLed servlces

CuallLy Check


Informat|on ke|ated Serv|ces


MlS on sLock dlspaLch

l relaLed MlS

lnvolclng relaLed MlS

reparaLlon / submlsslon of Lxclse reLurns


Invo|c|ng


Crder rocesslng

lnvolce rlnLlng

8elaLed SLaLuLory uocumenLaLlon


Inventory Management


8eorder Level AssessmenL flnallzaLlon

SLockaglng lSn analysls


D|str|but|on (Secondary 1ransportat|on)


1ransporLaLlon Lo CusLomers' premlses

unloadlng aL CusLomers' premlses

1ranslL lnsurance (as requlred)

8everse LoglsLlcs

1ransporL Load CpLlmlsaLlon

LlLeraLure 8evlew non vessel CperaLlng Common Carrler
7


lndlan ConLexL
lndios NvOccs hove o/so worked hord to chonqe customs ond other domestic requ/otions
to moke it eosier to provide efficient conso/idotion services "lndio ot one time wos known
for its comp/icoted ond cumbersome customs procedures nowever thinqs hove been
chonqinq positive/y over the /ost few yeors" khos/o soid
ln the /ote 1990s lndion customs beqon o//owinq the hond/inq of mu/ticity conso/idotion
contoiners meoninq NvOccs cou/d occept corqo ot in/ond contoiner depots move it to
qotewoy ports where it cou/d be further sorted ond repocked into contoiners for overseos
destinotions
1wo yeors oqo the lndion qovernment creoted on internotiono/ tronshipment hub
requ/otion wherein NvOccs moy receive /essthoncontoiner /ood corqoes from vorious
countries ot lndion ports ond sort them into contoiners for the fino/ destinotion countries
1his type of octivity hos /onq been prevo/ent in /orqe tronshipment ports such os
5inqopore ond uuboi















LlLeraLure 8evlew non vessel CperaLlng Common Carrler
8

ypothes|s Iormat|on and Iar|ab|es Invo|ved
ypothes|s 1 Impact of ownersh|p of onta|ner on overa|| fre|ght of cons|gnment
ontro| Iar|ab|es
Ceographlc locaLlon (Crlgln and uesLlnaLlon of ConslgnmenL)
1urnover Llme of conLalner aL orLs ClS
AvallablllLy of Company offlce aL desLlnaLlon
lrequency of servlce of Llner SLeamshlp Company uead lrelghL lncurred
1rucklng faclllLy and charges levled by for road LransporLaLlon
8allways LransporLaLlon and cosL for LransporLaLlon
Sea rouLe and Lurnover Llme aL each porL
CuanLlLy of space booked wlLh shlpplng llne
lmplemenLaLlon of L8 sysLem aL company
leeder servlce requlremenL and Lurnover Llme Lo avall such servlce
1ype of Cargo carrled and CusLom Charges levled on conslgnmenL
ypothes|s 2 ustomer sat|sfact|on and -I track|ng modu|e
ontro| Iar|ab|es
SofLware lmplemenLed Lo Lrack Lhe conslgnmenL
CusLomer care/helpllne
ueLalls enLered ln Lracklng sysLem
lrequency of updaLlng LhroughouL Lhe rouLe
lrequency of llner shlpplng servlce
Lase of accesslng Lhe webslLe of nvCCC
resence of represenLaLlve ln Lracklng sysLem
Lead Llme of lssues ellmlnaLlon
ypothes|s 3 orre|at|on between warehouse management and turnaround t|me for
cons|gnment
ontro| Iar|ab|es
use of l1 SysLem ln warehouse managemenL
LxperLlse level of Puman resource
LxLenL of AuLomaLlon ln Warehouse ManagemenL
Accuracy level of lnvenLory managemenL aL warehouse
8ecepLlon faclllLy of 8all wagons aL warehouse
number of ulsLrlbuLlon wlndows aL warehouse
Ceographlc locaLlon of Warehouse
CusLom offlce aL warehouse
ackaglng faclllLy aL warehouse
LlLeraLure 8evlew non vessel CperaLlng Common Carrler
9

Art|c|es |ted
O Study of the Un|ted States -I Serv|ce Agreements" osLed on May 3 2011 by
Chlna apers Chlnas CuLsLandlng MasLers 1heses arL u
O -I bus|ness |ega| r|sk prevent|on osLed 20091113
O 10 key o|nts |n -ew -I 1ar|ff kegu|at|ons !ames L uevlne !r ulsLrlbuLlon
ubllcaLlons lnc
O ILkS -I Ana|ys|s lL8S
O Iedera| Mar|t|me omm|ss|on Clenda !ackson rogram LvaluaLlon
O 1ough t|mes for sma||er |mporters as carr|ers |gnore request for quotes uamlan
8reLL | 1ue 14 !un 2011
O kesearch on Lega| rob|ems of -I osLed on May 27 2010 by Chlna apers
Chlnas CuLsLandlng MasLers 1heses arL u
O rob|ems oncern|ng -I osLed on !anuary 3 2010 by Chlna apers
O cean Ire|ght Intermed|ar|es An Ana|ys|s of -onIesse| perat|ng ommon
arr|ers (-Is) and Mar|t|me keform 1 CP8lS1CPL8
O Improv|ng product|v|ty and prof|tab|||ty through effect|ve pr|ce management
Amerlcan Shlpper MonLhly lssue uecember 2008 8y Chrls Clll
O US Iore|gn Ire|ght Iorwarders and -Is 8y uAvlu ! CL LvLL?n A
1PCMCPlC
O 1he regu|at|on of nonvesse|operat|ng common carr|ers (-I) and customs
brokers by nlkos assas and lmberly !ones norLheasLern unlverslLy Cambrldge
MassachuseLLs uSA