If you’re new to the world of international shipping, you might be wondering what the difference is between a freight forwarder and a non-vessel operating common carrier (NVOCC). Both types of companies offer similar services, but there are some key differences that you should be aware of. Here’s a quick rundown of the main differences between these two types of companies.
What are freight forwarders?
A freight forwarder is a third party logistics provider that specializes in the coordination and shipment of goods or bulk cargo across an international border.
They accomplish this by overseeing the entire logistic process, managing relationships with multiple carriers, planning routes to its destination, negotiating rates, and ensuring customs clearances are obtained.
They provide customers with an efficient way to reduce shipping costs while cutting through the complexities of international shipments.
Freight forwarder also offers customers additional services such as storage and tracking capabilities, container consolidation services and even storage insurance if needed. With these advantages it is easy to see how freight forwarder has become an indispensible part of moving goods around the globe.
What is an ocean freight forwarder?
The ocean freight forwarder represents its clients. Ocean freight forwarders transport goods between the warehouses of an enterprise and the destination. This responsibility includes: An ocean transporter has a right not to use an ocean boat. There is no charge for your shipment. Generally they depend on master’s bills of lading. This gives freight forwarders more flexibility than NVOCC working with a specific shipper they have established relationships with.
What is an NVOCC?
NVOCC stands for Non-Vessel Operating Common Carrier, and is an extremely important cog in the global shipping industry today.
This type of carrier is responsible for the transportation of goods using marine vessels, although they do not own them. Instead, NVOCCs typically work with freight owners to secure the best and most cost-effective rate for ocean cargo transport options, such as container ships and Roll On/Roll Off carriers.
They arrange suitable charters on behalf of their customers and are responsible for organizing navigation services, securing customs clearance documents and following up on issues related to cargo loading and unloading at ports.
Overall, it’s safe to say that Non-Vessel Operating Common Carriers are a crucial link in the supply chain which helps keep businesses fully functional.
What does NVOCC mean in shipping?
Tags: Glossary. A Non-Vessel Operating Common Carrier (NVOCC) is an ocean carrier that transports goods under its own House Bill of Lading, or equivalent documentation, without operating ocean transportation vessels.
What's the difference between nvocc and freight forwarders?
An NVOCC is an intermediary between the shipper and the vessel operator and issues their own bills of lading. A freight forwarder is an authorized agent acting on behalf of the shipper.
A freight forwarder is a company that ships goods on behalf of its clients
A NVOCC is a “non-vessel operating common carrier” – they don’t own their own vessels, but they contract with shipping companies to move freight
The main difference between the two is that a freight forwarder offers more services than just shipping, such as documentation and customs clearance
NVOCCs are regulated by the Federal Maritime Commission, while freight forwarders are not
Nvocc (Non-vessel owning common carriers) and freight forwarders both specialize in the transportation of goods, however they differ in their approach.
Nvocc service providers coordinate international freight movements under their own issued House Bill of Lading, exploiting the services of various subcontractors for activities like ocean, air or inland transport.
In contrast to this, a freight forwarder is a facilitator/coordinator that does not have its own assets (trucks / vessels) but brokers its customers’ transport requirements utilizing an extensive network of reliable transport partners.
Freight forwarders are bound by contract but make all other arrangements on behalf of their customers while the customer retains full responsibility and control of his cargo.
When and how to choose?
Shipping lines, ocean freight forwarders, and other specialized ocean freight services are all options for shipping items via ocean transportation.
Selecting between an NVOCC (Non-Vessel Operating Common Carrier) or freight forwarder can be a delicate decision for anyone looking to ship freight.
NVOCCs are essentially carriers that contract, transport and organize freight services without owning the ships or vessels transporting the freight.
Freight forwarders act as intermediaries, managing freight movement from shipper to receiver, generally via ocean freight.
An important factor to consider is whether either option issues its own house bill of lading or uses its own manila ocean bills or if it strictly relies on 3rd party carriers.
Ultimately, making the decision between an NVOCC or freight forwarder can depend on a variety of factors including cost, reliability and timeliness of deliveries.
Why use a freight forwarder?
Working with a freight forwarder is one of the most effective ways to ensure that ocean carriers are sourced, relevant shipping documents are handled, and goods are transported safely and on time.
A freight forwarding business can provide valuable advise on route selection, ocean carrier recommendations and other aspects of international ocean freight transportation.
Additionally, they often leverage their high-volume ocean freight purchasing power to secure competitive ocean freight rates from ocean carriers while they manage the end-to-end supply chain process using their industry expertise.
In sum, a freight forwarder should be seen as an invaluable partner in directing a successful ocean shipment.
How much does freight forwarding cost?
Freight forwarder is an essential service for safe and timely transportation of goods from a point of origin to its destination.
To determine the cost of freight forwarding, various shipping lines and ocean transportation intermediaries must be considered. Depending on the goods being transported, the size and weight of the items, as well as other factors such as insurance costs, will also impact the total cost of freight forwarding services.
Taking all these elements into account can help you calculate your exact freight forwarding costs so that you can safe time, money, and resources.
How do I find an NVOCC?
Finding an NVOCC can be a tricky process. An NVOCC is essentially an ocean transportation intermediary which moves ocean freight cargo and issues its own bill of lading while maintaining their own containers. However, not all ocean transportation intermediaries are certified as an NVOCC.
In order to find the most reliable NVOCC, it’s important to do research and compare multiple ocean freight providers. Any ocean freight provider worth doing business with should meet all compliance and financial requirements as well as providing detailed terms and specified services at competitive prices.
Ultimately, finding an NVOCC that meets your needs can be time consuming but will result in peace of mind knowing your cargo is in capable hands.
Is an NVOCC a carrier?
An ocean carrier who performs all of the services of a carrier, but who does not own their own vessel(s). They operate by leasing or buying available space in containers and using their own House Bill of Lading to contract with customers.
Are there companies that provide both services?
Freight forwarding and NVOCC often go hand in hand in one way or another, and it’s not unusual to see a single company offering both services. This is another reason why there has been, in recent times, a blurring of boundaries between the two. In fact, even companies who do own and operate their own ships may offer one or both services to their customers.
The benefits of doing this are quite substantial for the company, which can then offer their customers access to shipping routes where they don’t have their own vessels or equipment. This can also help with setting up more streamlined supply chains that are likely going to be appealing to potential new customers.
Working with a company like this also makes a great deal of sense for a customer who is looking to access a full range of services in a single place – a so-called ‘one-stop-shop’ that can be used to virtually eliminate the many hassles involved with trying to organize logistics for transporting items both internationally and domestically.
