Slideshow: NVO rankings and state of trans-Pacific market

Slideshow: NVO rankings and state of trans-Pacific market

Photo credit: Shutterstock.com.

Non-vessel-operating common carriers (NVOs) have come to the rescue of beneficial cargo owners (BCOs) seeking better service guarantees and lower rates from ocean carriers they have contracted with for Asian imports. Data from PIERS, a sister company of JOC.com, show the NVO share of imports from Asia grew 1.7 percentage points year over year in the first six months of 2018. NVOs now have a 44.6 percent share of Asian imports in the trans-Pacific, compared with 36.8 percent in 2013. 

 

Beat the clock 

Desperate shippers facing the uncertainty of tariffs have increasingly turned to NVOs. With spot rates escalating and general rate increases, BCOs may end up paying more for the ocean leg of transportation. Bill Rooney, vice president of trade management North America at Kuehne + Nagel (K+N), said, “The tariffs are having an impact. BCOs are trying to beat the clock.” 

 

Photo credit: K+N.

Cargo left on the docks 

Carriers this peak season eliminated three vessel strings to the US West Coast, reducing overall capacity by 7 percent, and one string to the East Coast, cutting capacity by 1.3 percent. Shippers have turned to NVOs to help them get time-sensitive shipments loaded on ships that have been overbooked in Asia. “BCOs are very frustrated about the rolling of freight in Asia, particularly China, said Jon Slangerup, CEO of American Global Logistics. 

 

Photo credit: Shutterstock.com.

It started with new alliances 

BCOs have not been totally enamored by the formation of three large vessel-sharing alliances last year — 2M Alliance, THE Alliance, and Ocean Alliance. Shippers have no control over which carrier’s ship will transport their goods on any particular voyage, and equipment availability problems have resulted; ships may call at different terminals in the same port complex. NVOs may be better set to provide door-to-door service although ocean carriers control ship assets. Cooperation between the two parties is vital. 

 

Photo credit: APL.

Carriers react to shipper needs  

Ocean carriers have responded to shippers, seeking to add value to services. APL introduced expedited services from Asia; some lines have offered single-voyage extra-loaders to handle the surge in demand. Maersk Line and Hapag-Lloyd now offer shippers the option of getting instant quotes online. 

 

Photo credit: Shutterstock.com.

Fastest-growing NVOs in trans-Pacific 

Apex Shipping, No. 1 on the trans-Pacific NVO rankings, achieved 16.9 percent growth in its year-over-year share of the trans-Pacific trade in the first six months of 2018. OEC Group, No. 4, enjoyed a 17.5 percent jump in volume in the same time period. Top Ocean Consolidation Service was No. 7 in the Asian import trade, measured in TEU, with volume up 19.7 percent year over year. With growth of 17.7 percent, Seamaster Logistics ranked No. 9 in trans-Pacific import volume. Multi Container Line, ranking No. 14, saw the biggest spike in volume booked, up 23.9 percent, but from lower volume numbers. 

Top 25 NVOCCs: US Trans-Pacific Imports 

Top 25 NVOs in the trans-Pacific US import trade measured in TEU, according to PIERS, a sister product of JOC.com.
Rank  Jan.-June 2017 Jan.-June 2018 Year-over-year change
1 Apex Shipping 153,974 179,941 16.9%
2 Christal Lines 168,948 167,440 -0.9%
3 Expeditors 155,974 162,289 4.0%
4 OEC Group 128,760 151,311 17.5%
5 Blue Anchor Line - Kuehne + Nagel 124,468 131,064 5.3%
6 Honour Lane Shipping 95,225 104,896 10.2%
7 Top Ocean Consolidation Service 77,609 92,912 19.7%
8 Hecny Shipping 70,399 77,679 10.3%
9 Seamaster Logistics 58,809 69,241 17.7%
10 Dewell Container Shipping 62,285 62,139 -0.2%
11 Schenker Ocean 50,327 57,909 15.1%
12 Danmar Lines - DHL 51,741 53,514 3.4%
13 China International Freight 47,028 50,796 8.0%
14 MCL- Multi Container Line 40,457 49,994 23.6%
15 UPS Supply Chain Solutions 49,623 44,123 -11.1%
16 Orient Star Transport International 39,470 43,852 11.1%
17 Translink Shipping 38,818 40,366 4.0%
18 Yusen Logistics 41,468 37,728 -9.0%
19 FedEx Trade Network Transport & Brokerage 34,400 35,914 4.4%
20 Panalpina 33,838 35,782 5.7%
21 DFDS 41,850 30,748 -26.5%
22 Safround Logistics   27,679 n/a
23 LF Freight USA 31,088 26,573 -14.5%
24 Kintetsu World Express 22,958 26,325 14.7%
25 Pudong Prime International Logistics 27,582 26,185 -5.1%