Home Knowledge Base NVOCC - Non Vessel Operating Common Carrier

NVOCC – Non Vessel Operating Common Carrier

What does NVOCC Stand For

NVOCC is the short form for Non Vessel Operating Common Carrier

Who is a co loader

Coloader or Co loder is another name to the NVOCC

What is NVOCC

What is NVOCC-dailylogistic.com

NonVessel Operating Common Carrier is the party who does not have vessels on their own but does handle the shipments of other parties/ Cargo owners. Normally what they do is they reserve a slot from a vessel under an agreed rate from a shipping line and get cargo from Shippers to fill it. Since NVOCC fills a large space of the vessel, the shipping line offers a low rate to the NVOCC where NVOCC is able to provide a low rate to the freight forwarders/ customers. They will also identify as consolidators as they console the small shipments from various customers. These small shipments name as LCL cargo. LCL stands for the Less than container load. This means shipment size is small and only fills a small part of a container from this shipment. By collecting LCLs NVOCC can fill a container. This calls as FCL or Full container load. In return NVOCC issue a Bills of Lading or BL to the shipper. Normally this BL is a house Bills of lading.

Normally NVOCC has a network of offices around the world to facilitate logistics requirements of the customers.

How NVOCC gain profit

As mentioned above Non Vessel Operating Common Carriers reserve a larger space from a vessel when compared to individual shippers. The reason is NVOCC has a larger shipment than an individual as NVOCC  has shipments of several cargo owners. Hence, shipping lines offer them low rates than what they offer to individuals. This happens as NVOCC has bigger shipments. Since NVOCC gets lower rates they can still offer low rates to freight forwarders than the rate small freight forwarders directly get from shipping lines. So, NVOCC is not a shipping line. It does not own vessels. But take the responsibility as a carrier before the law.

What is the role of NVOCC in Shipping

In the shipping industry, NVOCC plays the intermediary role between the shipping lines and the shippers. So we can say NVOCC is the party who connects shipping line and the shipper

Is NVOSS a carrier?

Yes, it is…

NVOCC act as the carrier to the shippers. We can explain this as below.

For a shipper, NVOCC issue a Bills of Lading and take the responsibility to ship the cargo of shipper. At the moment NVOCC becomes the carrier to a shipper. During a dispute, the shipper can seek protection before the law for the issues BL (Is BL a Contract?).

Is NVOCC a Shipper?

Yes, it is…

Don’t worry, if you feel confused. I am here to explain…

NVOCC became the carrier to its shippers. Meanwhile, NVOCC is the customer to the shipping line. Because NVOCC provides the cargo to shipping lines to ship. Because of that, NVOCC becomes the shipper to the shipping line.

Do you think NVOCC and Freight Forwarder are same?

I know… This is a bit confusing. As a glance, it looks like NVOCC and freight forwarders are same. But it’s not. Even they are two different parties, they have a lot of similarities too. Those include caring for your cargo, issuing Bills of Loading, intermediate parties in between the shipping line and cargo owner etc.

For easy understanding, we can say, main different as the responsibilities each party carry. NVOCC is more responsible for the cargo as they act as the carrier to the cargo owner. The freight forwarder is mainly the agent of cargo owner who provides the ground logistics support to ship cargo.

Next articleFreight Forwarder

2 COMMENTS

  1. Hello. Wonderful article. I think it would have been more thorough if it had also included a link to one or more respected/vetted job boards for people to explore open positions, etc.

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