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What is a beneficial cargo owner?

A Beneficial Cargo Owner (BCO) refers to the person or entity that ultimately owns the goods being transported, typically the importer or buyer who has directly purchased the cargo from a foreign supplier. Unlike a freight forwarder or an NVOCC (Non-Vessel Operating Common Carrier), who acts as intermediaries in the shipping process, the BCO has direct ownership and control over the shipment. 

This term is crucial in the logistics and shipping industry as it helps in identifying the party that has actual, vested interest in the cargo, influencing decisions related to the transportation, insurance, and handling of the goods. BCOs often have significant negotiating power in terms of freight rates and shipping terms, as they usually handle large volumes and establish long-term contracts directly with carriers or shipping lines, ensuring their cargo's efficiency, cost-effectiveness, and secure delivery.



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