What is NVOCC & Function of NVOCC

Definition of Non-Vessel-Operating Common Carrier

The function of a non-vessel operating common carrier (NVOCC), is to serve as an agent or intermediary for ocean freight shipments, by booking space on container ships for its customers. In addition to organizing ship schedules and other logistical aspects of ocean freight shipments, Non-Vessel-Operating Common Carrier also works with customs agents and international freight forwarders, as well as provides advice about pricing, tariffs, and other important considerations. In general terms, a non-vessel operating common carrier (NVOCC) performs all operations associated with ocean shipping except actually loading and unloading cargo at ports. However, some NVOs do operate their own terminal facilities to help control costs and maintain control over their logistics operations.

Functions of Non-Vessel-Operating Common Carrier

The main function of a Non-Vessel-Operating Common Carrier is to establish contacts with both shippers and carriers. Once these are in place, Non-Vessel-Operating Common Carrier will then communicate to ensure that their end of the deal has been met. There are various ways to do so. At sea, tracking systems can be used to make sure that every shipment arrives at its destination on time. The term Non-Vessel Operating Common Carrier actually encompasses a few different kinds of business structures. 

Characteristics of a Non-Vessel-Operating Common Carrier

NVOCC’s main purpose is to provide clients with service as much as they need, as well as what they want. A Non-Vessel-Operating Common Carrier will set up a contract that offers services that can be customized, to fit any client’s needs and wants. The job of a Non-Vessel-Operating Common Carrier is hard because they must rely on other companies to do everything for them. They have little control over their decisions and must take things at face value and work around it.  It represents someone who isn’t responsible for any vessels but has all responsibilities of one, leaving many companies too confused to understand just what one exactly does.

Benefits of using a Non-Vessel-Operating Common Carrier

The main benefit of using an NVOCC is that they do not hold any responsibility for what goes on during transport. This means that they do not have to go onboard their vessels to check what cargoes are being carried or make sure that safety standards are being adhered to. Rather, they only have obligations to their clients. There may be more costs involved when using a Non-Vessel-Operating Common Carrier, but that money will be directed towards things like insurance and providing workers’ compensation for employees. These costs may be offset by savings made elsewhere in areas such as fuel consumption due to economies of scale.

What is the difference between actual carrier and Non-Vessel-Operating Common Carrier?

An actual carrier or operational carrier owns or operates vessels to transport goods for its clients. Whereas, the non-vessel operating common carrier does not own or operate vessels, but it offers related services to other companies who do own and operate ships. Actual carriers are also known as ship operators, shipping lines, shippers, operators, etc. whereas NVOCCs are also known as freight forwarders, freight agents, and logistics service providers/3PLs/Cargo Forwarders..

Can Non-Vessel-Operating Common Carrier be a freight forwarder?

Yes. The only requirement in regards to acting as a freight forwarder is that you provide door-to-door delivery of cargo. It does not matter if you do so by land, air, or sea (though in many cases, a Non-Vessel-Operating Common Carrier will specialize in one or two areas). Because there are no special requirements in regards to what modes of transportation you offer, a Non-Vessel-Operating Common Carrier can act as a freight forwarder. Moreover, it should be noted that only licensed NVOCCs may act as freight forwarders.

Is Non-Vessel-Operating Common Carrier a shipping line?

No, there are no shipping lines in NVOCC. A liner shipping company owns and operates vessels to deliver cargo on its behalf. The term NVOCC is sometimes confused with shipping line, but they do not refer to the same thing. A Non-Vessel-Operating Common Carrier performs all of a liner carrier’s duties (and some tasks that liner carriers don’t), but it doesn’t operate any vessels of its own; it contracts out space on other companies’ ships or charters them for special services.

Advantages and disadvantages of Non-Vessel-Operating Common Carrier

It’s important to note that while NVOCC may provide all of the services offered by VOCC, they’re likely not able to do so at an extremely low cost, which could deter shipping companies from wanting to hire them. However, their ability to do business internationally might help them find shipping customers who prefer dealing with international shippers anyway. Another disadvantage is that they may not own any vessels themselves. That means they’ll have no control over when or how quickly shipments can be delivered, but it also means that they won’t have any overhead costs associated with maintaining a fleet of ships. In many cases, Non-Vessel-Operating Common Carrier offers a different kind of advantage.

How does a Non-Vessel-Operating Common Carrier benefit, new exporters

Non-vessel operating common carriers (NVOCCs) can help reduce shipping costs and time for companies looking to export. A potential exporter must be cautious when choosing a shipping carrier, and consider whether or not it will cost less in time and money to use an NVOCC. Non-vessel operating common carriers can offer lower prices than regular steamship lines by sharing containers, with other companies that would otherwise spend more on storage space. Using a Non-Vessel-Operating Common Carrier also helps streamline shipments by reducing paperwork, making it simpler to send goods abroad without being charged for excessive labor or administration fees.

How we can help you?

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why choose us?

We are experienced, specialized, and able to work with all of our clients professionally. We would like to make sure that your shipments reach their destination on time and intact. With us, you don’t need to go through any paperwork or stress yourself out because we can handle it all for you. What is more important than time and money right now? That’s why we are here! You get great quality service at an affordable price. It sounds like a win-win situation, doesn’t it?