NVOCC
Establishing ourselves as strong player in Non Vessel Operating Common Carrier in the trade with our wide range of service to Middle East, Upper Gulf and Far East Sector.
Thru our wide and strong overseas network , we are providing an innovative and value added service on a weekly basis with competitive prices to these sectors
NVOCC (Non vessel owner common carrier) stands for Non-Vessel Owning Common Carrier. NVOCC operation comprises sales, stuffing, and transport of the containers to gateway ports. The bill of lading issue and overseas distribution is taken care of by the agents of NVOCC.
In ocean shipping, an NVOCC is a cargo consolidator who buys space from a carrier and sub–sells it to smaller shippers. The NVOCC performs all the functions of a carrier like - issuing bills of lading, publishing tariffs, except providing actual ocean or intermodal transportation. Forwarding agents are an example of non-vessel operating common carriers. An NVOCC can be described as a shipper to carriers and a carrier to shippers.
While NVOCCs do not usually own their own warehouses, many own their own fleet of containers. In certain circumstances, an NVOCC may also operate as a freight forwarder.
An NVOCC signs contracts with shipping lines to guarantee the shipment of a certain number of units each year. In return, the shipping line offers favorable rates to the NVOCC. Thus, NVOCC ends to be the largest trade maker for container shipment.
Functions performed by a NVOCC
Essentially, a NVOCC has volume based ocean freight arrangements with shipping companies around the world. These shipping companies own and operate various cargo ships, allowing them to physically transport goods across shipping lines. Since a NVOCC is not involved in the operation of the ships, it instead concerns itself with the following functions:
- Booking cargo
- Organizing cargo activities
- Negotiating freight rates with its partner shipping companies
- Consulting on transport and logistics plans
- Organizing shipments, thus ensuring that container shipping quotas are met
What Is The Role Of NVOCC?
A Non-Vessel Operating Common Carrier (NVOCC) is an individual or company that performs all the functions of an ocean carrier without actually owning the vessel’s. While they do not operate any ships, NVOCCs provide goods, products or equipment delivery services to customers.
What is the function of a NVOCC..?
A NVOCC is often termed as a “carrier to shippers” and “shipper to carriers”.. What does this mean..?
At the most basic level, a NVOCC enters into volume based ocean freight arrangements with the various shipping lines operating across the various trade lanes.. A NVOCC then creates their own tariff based on which they sell space on these liner services to their various clients..
A NVOCC’s client list may include
- BCO – Beneficial Cargo Owner which is another term for Exporter or Importer
- Freight Forwarder
- Clearing Agent
- Freight Broker
