Final answer:
Consolidation is the term used when a NVOCC gathers multiple shipments from different shippers and transports them together under a single bill of lading.
Step-by-step explanation:
The correct answer is option Consolidation. When a Non-Vessel Operating Common Carrier (NVOCC) consolidates and transports several shipments under a single bill of lading, it is called consolidation. This process involves gathering small shipments from different shippers, combining them into a larger shipment, and then transporting them together under one bill of lading.
Consolidation is commonly used in container shipping to optimize transportation costs, improve efficiency, and provide better service to customers. By consolidating multiple shipments, NVOCCs can take advantage of economies of scale and optimize container space utilization.
For example, if several shippers have small quantities of goods to transport to the same destination, an NVOCC can consolidate those shipments into one container and transport them together. This reduces shipping costs for each shipper and allows the NVOCC to offer competitive rates.
The correct answer is option: when a Non-Vessel Operating Common Carrier (NVOCC) consolidates and transports several shipments under a single bill of lading, this process is commonly referred to as consolidation or freight consolidation.
This service provides cost benefits to smaller shippers as it allows them to share a container with other shipments, thereby reducing the cost per unit. In consolidation, different consignments are combined to optimize container space and cost, which is advantageous when dealing with LCL (Less than Container Load) shipments.
Container ships play a critical role in this aspect of shipping, as they frequently make stops along regular routes to load or unload, contrasting with bulkers that travel between two ports and depend heavily on market conditions.
This mode of operation for container ships facilitates the consolidation process by allowing for an intricate and regular pattern of shipment network, vital in a global trade system that is increasingly reliant on efficiency and cost-effectiveness to remain competitive.