Some NVOCCs have suggested that they will open talks with a wider range of carriers than in past years. Those NVOCCs will employ a strategy of spreading the risk of not getting space when needed.  Some NVOCCs have suggested that they will negotiate as strongly as possible, but that they will also accept some high ocean rates in their portfolio so that they have attractive cargo/rates to offer if bookings remain tight.  

Shippers will demand higher minimum volume commitments in contracts, but carriers will seek lower volume commitments as it would be in their best interests.  Carriers will also cap volume allowed based upon each contract’s MQC.  This is another reason that importers need multiple contracts to secure enough MQC to move their freight.   

NVOCCs must plan their strategies carefully.  It is clear NVOCCs / Freight Forwarders will have ample opportunity to make market share gains in this carrier favored market.  

Strategies:

  • Space, commitments, and performance.  These will be the new criteria in pricing for an NVO in 2021.  Those that manage all three of these interwoven parts of the trade will do well.  

  • The key to 2021 will be space; if it is tight, rates will continue to go up and those that can secure space through their dynamic relationships with the carriers will grow.  But there is more to this coming in 2021.  It will be very important to ensure that the carriers are giving the space they commit to you each week from each port.  And, customers are going to want to see that they got what was promised. 

  • 2021 will be the year where running an Allocation Management process will be key.  This means establishing space commitments with your customers and showing them that they are getting those slots each week.  Furthermore, it also means holding the carriers accountable for the commitments that they have made to you.  Are you getting all of the slots that were promised?  Can you see this far enough out to make a correction?

Talk with us about how we combine our Allocation Management reports with your Security Filing / Shipments so that you can see how your bookings line up with both your commitments to your customers and the commitments the carriers have given you.

  • Electronic bookings (e-Bookings) are another part of this puzzle.  We’ve made connections with all of the major carriers so that you can set up a shipment when you receive the booking, book it with the carrier, see how it lines up with your allocations, and then process your Security Filing once you’ve received the cargo at the terminal.

One platform, a single shipment file, automated touch points through our network of connectivity means no extra work for you.