Many different types of businesses make up the ocean freight shipping supply chain. Some of the most important types of marine freight businesses include:
The largest and most powerful businesses, which take possession of their goods at the port and move them using their first-party logistics assets, are known as beneficial cargo owners (BCOs). only the largest businesses like Amazon, Target, and Walmart are usually able to act as BCOs, and these are also usually the only businesses that VOCCs will negotiate with directly because BCOs import very large amounts of cargo.
Since most businesses aren’t BCOs, they will deal with OFFs and/or NVOCCs instead. Together, OFFs and NVOCCs are known as OTIs, or ocean transportation intermediaries. OTIs help ensure that paperwork is in order and coordinate the flow of cargo between shippers and carriers. They provide access to VOCCs for smaller importers and help negotiate more affordable rates by leveraging large amounts of cargo.