There is nothing more important than choosing a proper shipping agent whether you are importing or exporting. In order to help you to choose the right partner, we are here to give you the difference between NVOCC and freight forwarder. Continue to read.
What Is NVOCC?
An NVOCC may be defined as an entity that provides ocean freight services as a “carrier,” albeit with or without own or operated vessels.
The NVOCC accomplishes this by buying slots or space from a VOCC (Vessel Operating Common Carrier) and reselling the same to their customers, who can be exporters or forwarders.
NVOCC issues its own House Bill of Lading as a “carrier” and, in doing so, undertakes the responsibilities of a carrier subject to, of course, the terms, conditions, and liabilities of their bill of lading.
Apart from obtaining a license from the FMC, NVOCC operators also have to file a tariff before operation in the USA.
A tariff contains actual freight rates, charges, surcharges, freight classifications, rules, regulations, and practices of a common carrier (VOCC or NVOCC).
Who is a freight forwarder?
A freight forwarder is a supply chain expert who arranges for the seamless movement of cargo. And they do that by arranging and facilitating the transportation of your goods via different modes: ocean, rail, air, or road. The only golden rule about freight forwarders is that they are not the ones moving your cargo, only arranging for it.
Exporting goods is not easy with way too many steps, documents, and certificates to clear. It’s almost impossible for novice exporters to know all about these. So when you’re hiring a freight forwarder, you’re basically paying them to get all of these in order. As a result, in many instances, freight forwarders are referred to as ‘shippers’ in relation to ocean carriers.
What is the difference between NVOCC and Freight Forwarder? Check the following chart
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