/fr/lp/blog/key-terms/2023/bco-beneficial-cargo-owner
The Role of Beneficial Cargo Owner or BCO in Shipping
22/12/2023
Updated: 16/09/2025
Key Takeaways:
- A BCO not only takes physical control of the cargo but also contracts directly with carriers, negotiates rates, and often handles documentation and customs processes.
- A VOCC (Vessel Operating Common Carrier) is a company that owns or leases vessels and operates ocean transport, managing cargo from origin to destination via those vessels.
- Working with a BCO indeed gives importers more direct oversight, greater negotiation leverage, and legal responsibility for the cargo, which can translate to better transparency and peace of mind.
A beneficial cargo owner or BCO refers to an individual or company who acts on behalf of the importer by taking possession of the cargo when it reaches its destination. A BCO takes control of the shipment and doesn’t rely on third party sources like freight forwarders or NVOCCs for the movement of the goods. Because they are involved in arranging the entire process, smaller importers will often consult BCOs to make the importing process easier.
Working with a BCO
Before hiring a BCO, it’s important to understand their contract, and what this means for your shipment. A BCO contract specifies the transportation of cargo through either a direct or indirect channel.
For shippers who have a high volume of cargo and require frequent international shipping coverage, it is better to opt for a direct channel contract. This means you’ll be able to communicate directly with the carrier regarding your shipment rather than communicating via the BCO. If you don’t have a lot of cargo volume and may have less need to communicate directly with the carrier, then it might be better to opt for an indirect channel contract.
Working with a BCO
Before hiring a BCO, it’s important to understand their contract, and what this means for your shipment. A BCO contract specifies the transportation of cargo through either a direct or indirect channel.
For shippers who have a high volume of cargo and require frequent international shipping coverage, it is better to opt for a direct channel contract. This means you’ll be able to communicate directly with the carrier regarding your shipment rather than communicating via the BCO. If you don’t have a lot of cargo volume and may have less need to communicate directly with the carrier, then it might be better to opt for an indirect channel contract.
As a BCO administers and supervises the entire shipping process on behalf of the importers, there are several benefits of working with one. These include:
• The ability to track your shipment via the BCO during transportation.
• Peace of mind over the safety of your cargo. A BCO will issue a bill of lading once hired, making them liable for the loss of any cargo during shipment.
• Reduced responsibility for managing the shipping process. Depending on the contract, a BCO will take control of the whole shipping process, including the necessary paperwork.
There can be some confusion between the role that a BCO plays in shipping, and the role of a VOCC, or Vessel Operating Common Carrier. A VOCC is a company that owns the vessels used during the transportation of cargo. They also own vessels that can be leased to other entities to provide transportation for the goods across the ocean.
A VOCC is responsible for the cargo onboard from the point of origin to the destination point. Conversely, a BCO is an importer who has complete control over the shipment throughout the transportation until the final destination.
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Learn MoreFAQs
What is a BCO?
A Beneficial Cargo Owner (BCO) is indeed the importer or consignee who owns or directly controls the cargo once it reaches its destination, handling logistics with their own assets rather than through intermediaries.
What’s the difference between a BCO, freight forwarder, and NVOCC?
- A BCO manages its own shipments and logistics directly.
- A freight forwarder acts as an intermediary handling coordination, customs clearance, and documentation.
- An NVOCC functions as a licensed ocean carrier without vessels, consolidates shipments, issues its own bill of lading, and assumes greater liability than a forwarder.
What are direct vs. indirect BCO contracts?
Direct contracts are ideal for large volume imports and allow for direct communication between carriers.
Indirect channel contracts are better for smaller imports, and communication is handled via a BCO.