An Ocean Transportation Intermediary (OTI) is a key player in the logistics and shipping industry, acting as a middleman between shippers and carriers. OTIs include freight forwarders and non-vessel-operating common carriers (NVOCCs), providing services such as securing the best freight rates, ensuring optimal routing for cargoes, and preparing and processing necessary shipping documents.
OTIs operate by coordinating and facilitating international cargo shipments. As intermediaries, they do not own the ships but contract with shipping lines to secure transportation for their clients' cargo. They handle the logistics of shipping, including consolidation of cargo, negotiating rates with carriers, booking cargo space, arranging for transport to and from ports, handling customs clearances, and providing tracking and management of shipments.
OTIs play a crucial role in global trade by making the process of shipping goods across international borders more accessible and efficient for exporters and importers, particularly those who may not have the expertise or resources to handle complex international logistics themselves. They provide valuable expertise in navigating the regulatory and logistical challenges of international shipping, helping clients to avoid potential pitfalls such as delays, fines, or loss of cargo.
