When it comes to international shipping policies, it can be easy to get confused between NVOCC, VOCC and Freight forwarders. This is why you should go to a company that specializes in international trade data; not only will they thoroughly answer your questions like what is an NVOCC. But they will also help arrange for your products to be transported.
What Is VOCC?
A VOCC or more commonly called Vessel Operating Common Carrier. This is a term used by shipping companies that own vessels to lease them out to other companies. These vessels essentially become public carriers that can be drafted by companies to transport their goods. The company that has leased the vessels and who is selling rental space is responsible for the safe transportation of the cargo from port to port.
What Is an NVOCC?
An NVOCC that’s also known as a Non-Vessel Operating Carrier, is a virtual shipowner. These companies do not own their ships of their own, so they lease space out from shipowners and then sell that space to exporters.
In this case, the NVOCC is liable for the goods that are being transported to the company that owns the goods and not the ships that the goods are being transported on. This type of transportation requires a Bill Of Lading so that the goods are officially accounted for. This should answer the question of what is an NVOCC.
What Is A Freight Forwarder?
A freight forwarder is an intermediary who arranges for goods to be transported from one place to another. They take care of all of the logistics of international shipping, making sure that your goods get from point A to point B without worrying you.
Difference Between VOCC, NVOCC And Freight Forwarders
The VOCC is probably the most hands-on method of shipping; all of the logistics will have to be handled by you. They are just transporting your cargo along with many other companies’ cargo. In the NVOCC vs freight forwarder, it is essential to understand the distinction.
An NVOCC is selling space on a vessel they are directly involved with the transportation of your cargo. A freight forwarder organizes for the transportation of your cargo, and they can also employ NVOCCs. They are not directly involved with the transportation of your cargo. Instead, they handle all of the logistics of the move.
A VOCC does not take responsibility for the cargo. Instead, the responsibility is taken by the crew on the ship or the corporation they are employed by. An NVOCC, unlike a freight forwarder, is responsible for any losses that occur on the journey. They are required to issue a Bill of Lading.
A freight forwarder, however, does not need to issue a Bill of Lading as they are only responsible for arranging the transportation; since they are not directly involved in the transportation, they are not required to resume any responsibility.
An NVOCC has to issue a Bill of Lading and other such standardized documentation in accordance with FIATA rules and regulations. With freight forwarders, they issue their own Bill of Lading and other documents which are not regulated or held to any sort of international standards.
What is An NVOCC usually deals with shipping alone. It does not venture into any other parts of the supply chain. Some big freight forwarders own and operate their own warehouses to cut down on costs.
What Should You Choose?
In the NVOCC vs freight forwarder debate, there are no winners> both NVOCC and freight forwarders tie. It depends on how much you are willing to pay and which service gives you the best value for time.