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  • The BOC Blast 108 – More container cargo moving with NVOCCs

The BOC Blast 108 – More container cargo moving with NVOCCs

Thursday, 19 May 2016 / Published in The BOC Blast

The BOC Blast 108 – More container cargo moving with NVOCCs

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More container cargo moving with NVOCCs
Approximately 37.5 percent of imports to the United States were contracted by non-vessel operating common carriers in the first quarter of 2016, according to research firm Datamyne.
BY CHRIS DUPIN |WEDNESDAY, MAY 18, 2016
A larger share of container cargo is routed through non-vessel operating common carriers (NVOCCs).
According to Miami, Fla.-based research firm Datamyne, about 37.5 percent of imports to the U.S. were contracted by NVOCCs in the first quarter of 2016.
The firm said that is “a bump up from 2014’s share of 36.0 percent and a 10 percentage point gain over 10 years.”
The dependence on NVOCCs varies among the top 20 carriers, according to the list generated by Datamyne. In the first quarter of 2016, it ranged from 79 percent for United Arab Shipping Co. to just 4 percent for Seaboard Marine and zero percent for Transfrut Express, which carries fruit for Dole, according to Datamyne’s list of the 20 largest vessel operating common carriers.
Datamyne found even the largest carriers may have more than one-third of their cargo contracted by NVOCCs.

Datamyne believes part of the reason for the change is that shippers are increasingly outsourcing logistics to NVOCCs, rather than performing work in house. It also said that trend toward outsourcing is driving mergers and acquisitions in the 3PL space.

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