News
The number of logistics service providers registering and/or obtaining licenses as non-vessel-operating common carriers (NVOCCs) and advancing into the NVOCC market has been increasing since the beginning of 2010.
NVOCC services are divided into two classes. One is responsible for seaborne (port-to-port) transport, the core element of international freight services. The other covers, on top of the ocean portion, door-to-door transport from places of origin to ports of loading and from ports of unloading to places of destination, which includes cargo pickup and delivery services by truck.
For the former, logistics companies need to register as NVOCCs, and for the latter, they must obtain licenses.
In 2009, the number of logistics service providers registering and/or obtaining licenses as NVOCCs was approximately 30. From January to July 2010, however, a total of 25 business operators were allowed to provide NVOCC services by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT). In July alone, 11 registered and obtained licenses.
It is analyzed that logistics service providers intend to meet demand for NVOCC services that shippers doing business globally need to procure parts and components as well as raw materials. At a time when competition is intensifying more and more among forwarders, they also hope to secure cargoes from customers.
Several inquiries have been made on NVOCCs almost everyday in August, according to the MLIT.
