What is BCO stands for in Shipping?

Are you having difficulty managing your imports? Having a beneficial cargo owner on your side to help with your next shipment is exactly what you need. There are a lot of things involved when you import cargo. With BCO, you can expect worry-free and secure Shipping. You must clearly understand BCO if you are involved in exporting or importing business. So let’s discuss how BCO can help you deal with the freight process.

The BCO divides ocean freight into two primary channels: indirect primary channels and direct primary channels. The direct channel is for large companies (large shippers), and the indirect channel is for small or medium size company. 

What is a BCO: Beneficial Cargo Owner

Ocean Freight from China to Malaysia

In a beneficial cargo owner (BCO), an importer manages a shipment using their logistics assets instead of relying on third-party services.

When the cargo reaches its destination ( at the point of entry), the BCO takes possession of it. The beneficial cargo owner companies are solely responsible for the shipment and don’t rely on indirect channels like freight forwarders or NVOCC companies.

You may have interesting in NVOCC and Freight forwarder differences.

What are the benefits of cooperating with BCO?

What are the benefits of cooperating with BCO

You can enjoy several advantages when you hire a BCO (beneficial Cargo Owner) for your freight process. But what can they offer your business? Let’s find out.

Product safety is of the utmost importance, but sometimes products can be lost or misplaced due to negligence. BCOs can prevent this by preparing a bill of lading and becoming liable for any losses during Shipping. Business owners feel confident that packages will arrive safely at their final destination. If anything wrong happens, they will take responsibility on behalf of the actual owner. You can negotiate directly with them or gain bargaining power for your loss.

One of the advantages of working with BCO (Beneficial Cargo Owner) is that your clients will be in continuous communication with you. Until your shipment arrives at its destination, you can track it, which is helpful for regular shippers (Check here what is shippers) and irregular shippers. They use the direct channel to complete your shipment and rely on the internal logistics team for huge volume shipments. BCO takes control of the shipment for the company. With their services, you won’t have to worry about anything from operating and managing the entire shipping process. They will handle the paperwork on behalf of your company. 

BCO, NVOCC, VOCC, and Freight forwarder, what is the difference?

BCO, NVOCC, VOCC, and Freight forwarder, what is the difference?

You may need clarification on the terms BCO, NVOCC, VOCC, and Freight forwarder. To understand the differences between the terms, let’s analyze their meanings.

NVOCC stands for Non-Vessel Operating Common Carrier. NVOCC operations include sales, stuffing, and transporting containers to gateway ports. The NVOCC agents handle the bill of lading issue and overseas distribution. A BCO (beneficial Cargo Owner) does not involve any third-party source while shipping a product. NVOCC license requirements include financial proof for the companies. 

 A VOCC is a public maritime carrier (ocean carrier) with its fleet. They are shipping companies that lease vessels to other companies. When an importer (BCO) controls a shipment throughout its journey, it may own something other than the containers/cargo.

A freight forwarder is a company that connects transportation firms and businesses that need imported or exported goods.


I hope you have understood the difference between BCO, NVOCC, VOCC, and forwarder. The beneficial Cargo Owner (BCO) takes full control of the cargo and completes the shipment process. They don’t take help from any other parties, and their service guarantees complete safe shipment. 

If you need help arranging shipment from China worldwide. Welcome to contact us any time. You will get a quick quotation within 2 minutes after sending out an inquiry.

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