Bow of docked cargo ship at dusk

What is an NVOCC?

What is an NVOCC? 690 518 Transmodal

There are two distinct categories of logistics organizations that work to make it easier for commodities to travel from one location to another. These companies are known as freight forwarders and non-vessel operating common carriers, respectively. Although both kinds of businesses offer services that are comparable to one another, such as the coordination of transportation, the clearing of customs, and the preparation of documents, there are important distinctions between the two.

A company that fulfills the role of an intermediary between the shipper and the carrier is known as a freight forwarder. They provide assistance to the shipper by making arrangements for the shipment’s transportation, customs clearance, and documentation needs. They also offer other services such as distribution and warehousing for their clients. In order to provide their customers with the transportation choices that are both the most efficient and the most cost-effective, freight forwarders collaborate with a wide range of carriers. These carriers include aircraft, ocean carriers, and trucking businesses.

On the other hand, a non-vessel operating common carrier (NVOCC) is a business that offers services related to maritime transportation but does not own or operate its own vessels. Instead, they enter into agreements with carriers that operate vessels to provide the actual ocean transportation services. Additionally, NVOCCs are accountable for the issuance of their own bills of lading as well as the provision of tracking and tracing services for cargo. They also offer services comparable to those offered by freight forwarders, such as clearance of customs, documentation, and other logistics-related assistance.

A NVOCC is a company that provides ocean transportation services but does not own or operate their own vessels; instead, they contract with vessel-operating carriers, issue their own bills of lading, and provide cargo tracking and tracing services and other logistics services. In contrast, a freight forwarder acts as an intermediary between shipper and carrier and arranges transportation, customs clearance, documentation, warehousing, and distribution for their clients.