Essay: Transportation Freight/ Logistics

Essay: Transportation Freight/ Logistics
14/04/2011 Comments Off on Essay: Transportation Freight/ Logistics Academic Papers on Engineering,Sample Academic Papers admin

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Characteristics of NVOCCs

Non Vessel Operating Common Carriers (NVOCCs) are third party logistics provider. They are intermediary in freight business, similar to the Freight Forwarders. They operate by providing scheduled ocean shipping services to other logistics providers, without operating ships.

Working of NVOCC

NVOCCs, work by, fulfilling the role of carrier for the shipper and the role of shipper for the carrier.  Typical NVOCC guarantee a vessel operator a certain amount of freight in a week or month and purchase space on their vessels, on wholesale basis for shipment of cargo to and from a port. They have their own tariff, issue their own bills of lading and receive and consolidate less than a container (LCL) cargo from different shippers for transportation to the same port. Many Freight forwarders often use NVOCC for movement of LCL goods over the ocean segment. In the US, NVOCC handle about 10 percent of the total shipping volume per year (, 2000).

Competitors of NVOCC

NVOCCs are facing tough competition from other combined shipping companies. At the turn of 21st century, the shipping industry consolidated and a number of small parcel shippers have purchased various freight forwarding firms, offering a number of advantages over NVOCCs in a combined form. This has put NVOCC future in a doubt. Further shadow is casted by fact that the combined companies were quick to adopt new technologies and offer services, like consignment tracking, over the Internet to manage freight in transit which NVOCCs were very slow to adopt (Wood, 2002).

Possible Gaps in Security of Air Freight Services with Regards to Terrorism

Post 9/11, the threat of terrorism has been prominently highlighted throughout the world. This threat has also affected logistics industry including air freight services. While air transport organizations, around the world, have tightened their regulations regarding the security of passenger baggage on aircrafts, less attention has been paid to freight that is transported through air, via passenger or cargo aircrafts. Though steps are being taken on air freight security as well, gaps still exist in the current system for handling air cargo which can be exploited easily. Some of these gaps are highlighted below.

Incomprehensive background checks of employees

Current standards of security for cargo handling do not require comprehensive background checks and screening of the workers handling cargo and have full access to the aircraft. This pose a serious threat to security of air cargo as this flaw can used to pass weapons inside the secure area of the airports, which could eventually used by terrorists. There is also a great danger of sabotage of the aircraft by anybody who is able gain access to it.

Absence of Air Marshals on All Cargo Aircrafts

The lack of importance given to all cargo aircraft makes them an attractive target for terrorist seeking to highjack large cargo airplanes. Currently, federal air marshals, who are mandated to be present on all passenger flight in the US, are not present on aircrafts carrying only cargo. This security gap  is further enhanced by the fact that all-cargo aircrafts are also not required to have hardened cockpit doors as long as security measure as specified by Transport Security Administration (TSA) are implemented to control access to the aircraft.

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