 Mid-size NVOs are riding a wave of prosperity |
Source |
American Shipper |
Post Date |
11/18/2020 |
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Non-vessel-operating common carriers (NVOs) of all sizes increased their share of US imports from Asia this year as shippers both large and small scrambled to secure vessel space and containers at Asian load ports.
However, the current environment appears to be favoring the ˇ°second tierˇ± of NVOs who control less than 100,000 TEU a year. Their nimbleness in going after smaller accounts in the huge trans-Pacific market, and their on-site presence in Asia, give them greater access to smaller shippers, both NVOs and carriers say.
The top 10 NVOs t to focus on the largest US retailers and other beneficial cargo owners (BCOs) who book large blocks of freight. ˇ°This makes sense,ˇ± said an NVO utive who worked in the liner industry for a number of years. The top-10 NVOs normally target shipments of large BCOs who designate the routing of the freight and the carriers that are used.
Mid-size NVOs specialize in freight that can be directed to whichever carriers have equipment and space available. ˇ°The smaller NVOs are the ones closer to that market,ˇ± the former liner utive said.
NVOs in January through September handled 47 percent of US imports from Asia, according to PIERS, a JOC.com sister company within IHS Markit. That was up from 44 percent in the first nine months of 2019.
Carriers, many of which prefer to contract directly with BCOs, also increased their bookings this year with NVOs. Seven of the top 10 trans-Pacific carriers this year increased their bookings with NVOs, generally increasing NVO-tered freight by 4 percent to 6 percent compared with last year, according to PI
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