Connection between Shipper and NVOCC: NVOCC operation comprises of sales, stuffing, and transport of the containers to gateway ports. NVOCC stands for Non-Vessel Owning Common Carrier. The bill of lading issue and overseas distribution is taken care of by the agents of NVOCC. In this article let us discuss the difference between a freight forwarder and NVOCC.
Difference between NVOCC and Freight Forwarder
The definition and act of a freight forwarder and NVOCC are described by a government of various countries differently. Freight Forwarder provides expert advice and consultancy services. NVOCC and Freight Forwarders are considered as OTI. NVOCC provides carrier service under their own bill of lading. Functionally and legally there are some differences between the two.
Activities between a NVOCC and freight
Connection between Shipper and NVOCC: NVOCC can own and operate their own or leased containers. NVOCC acts as a virtual carrier and accepts all liabilities of a carrier legally, in certain areas of operation. An NVOCC need not be an agent or partner of a freight forwarding company, whereas freight forwarding company can act as a partner or agent for an NVOCC. Apart from the above, there are no major differences between a freight forwarder and NVOCC which is similar to each other. You can click here to read more about – What is NVOCC? How NVOCC can provide a better rate than the main shipping carriers. Basically speaking, NVOCC acts a ‘carrier to shipper’ and ‘shipper to carrier’.
Therefore, if in doubt, engage the services of a professional and reputable freight forwarding company… Do this after due research and preparations especially if you are exporting for the first time so you are not taken to the cleaners straight afterward. If you require all above activities to be done, then yes you need to employ the services of a freight forwarder, otherwise, if you are capable enough to handle it on your own, it can be done on your own.
NVOCC vs. Freight Forwarder
Shipper/Carrier: Acts as a carrier to the shippers and shipper to the carriers. Acts as an agent to/for the shippers.
Associations: There are no such associations for NVOCCs on a global basis while there may be some localized groupings in different countries. Most recognized and global forwarders belong to an association of freight forwarders called FIATA.
Networks: Some of the big NVOCCs appoint agents at various ports pretty much like how shipping lines appoint agents at various ports to handle their commercial and operational requirements, especially those that own and operate containers. There are several freight forwarder networks around the world who co-operate as network partners on an exclusive or non-exclusive basis in handling cargo all over the world.
Containers: Some of the big NVOCCs own and operate their own fleet of containers. Uses shipping lines containers and does not own or operate containers.
Shipping documentation: issues their own bill of lading which may or may not is based on any global standard.
You can easily discern this by the fact that freight forwarders do not issue a bill of lading while NVOCCs do. A freight forwarder doesn’t issue a bill of lading, so it isn’t liable for any damage or loss suffered while the cargo is in transit. It is the freight forwarder’s job though to get the bill of lading from the carriers that it would contract.
Do I Need A Freight Forwarder Or NVOCC?
Connection between Shipper and NVOCC: There are many ways of finding such a firm, however, you are in luck. MCS Global Transport offers a full line of cargo shipping services including both freight forwarding and NVOCC services. Usually, a NVOCC does not offer the same services as freight forwarders or the other way around. But there are some cases where you can work with one firm that provides both services. Here is another difference between a Freight Forwarder and a NVOCC. A NVOCC is required to publish their tariff prior to operating in the United States.