Primarily, NVOCCs negotiate contracts with vessel-operating carriers (VOCCs) to purchase space on ships in bulk at discounted rates. They then sell this space to shippers at a markup. The difference between the bulk rate paid to the carrier and the rate charged to the shipper constitutes a significant portion of an NVOCC’s revenue. By leveraging their relationships and negotiating power with carriers, NVOCCs can secure competitive rates that are attractive to shippers while still allowing for a profitable markup.
NVOCCs can also make money by providing the various other supply chain services to their shippers, such as cargo consolidation, documentation, customs clearance and inland transportation. Each of these services represents an additional revenue stream for NVOCCs, often with higher margins than the basic transportation service. By offering a one-stop-shop experience, NVOCCs can increase their revenue per shipment while providing added convenience to their clients.