What is a possible disadvantage of using a through bill of lading arranged by a VOCC?

Prepare for the Certified Export Specialist Test. Use flashcards and multiple-choice questions, each with hints and explanations. Get ready to excel!

The correct answer highlights a significant concern associated with using a through bill of lading arranged by a Vessel Operating Common Carrier (VOCC). When shippers opt for this mode of transport, they may face higher overall costs compared to making independent arrangements. This increase in cost can stem from several factors, such as the VOCC's service fees, additional shipping charges, and the potential for less competitive pricing when bundled services are involved.

In many cases, using a VOCC may seem convenient, but the integrated services offered can come at a premium. Independent arrangements might allow shippers to negotiate prices directly with carriers, potentially leading to lower overall shipping costs. Moreover, shippers can select a combination of carriers that may better fit their budget, rather than accepting the bundled pricing of a VOCC.

While other factors like delivery time, liability, and control are also important, the impact on costs stands out as a primary disadvantage for shippers considering the advantages of flexibility and cost-effectiveness in their logistics operations.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy