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What Is a Non-Vessel Operating Common Carrier (NVOCC)?

3PL Glossary > Non-Vessel Operating Common Carrier (NVOCC)

Non-Vessel Operating Common Carrier (NVOCC) Definition | TLDR

A Non-Vessel Operating Common Carrier (NVOCC) is a freight forwarder or logistics company that provides ocean transportation services without owning or operating vessels, consolidating shipments and arranging transportation on behalf of shippers.

Non-Vessel Operating Common Carrier (NVOCC) Meaning

A Non-Vessel Operating Common Carrier (NVOCC) is a key entity in the shipping and logistics industry that plays a vital role in facilitating the transportation of goods. Unlike traditional carriers that own and operate their own vessels, NVOCCs do not own ships but act as intermediaries between shippers and ocean carriers. NVOCCs consolidate and manage shipments from multiple customers, combining them into container loads for efficient transportation. They are responsible for securing space on vessels, handling documentation, and ensuring the smooth movement of cargo from the point of origin to the final destination.

What Distinguishes a Non-Vessel Operating Common Carrier (NVOCC) From Traditional Ocean Carriers?

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A Non-Vessel Operating Common Carrier (NVOCC) is a key entity in the shipping and logistics industry that plays a vital role in facilitating the transportation of goods. Unlike traditional carriers that own and operate their own vessels, NVOCCs do not own ships but act as intermediaries between shippers and ocean carriers. NVOCCs consolidate and manage shipments from multiple customers, combining them into container loads for efficient transportation. They are responsible for securing space on vessels, handling documentation, and ensuring the smooth movement of cargo from the point of origin to the final destination.

NVOCCs is significant in the context of global trade and the movement of goods across borders. Their flexibility and ability to consolidate shipments make international trade more accessible for businesses of varying sizes. NVOCCs enhance competition and efficiency in the shipping industry by providing alternatives to traditional carriers. They also contribute to cost savings for shippers by leveraging their expertise and negotiating power with ocean carriers. As global trade continues to grow, NVOCCs are expected to remain integral players in the logistics chain, facilitating the movement of goods across oceans and supporting the interconnected nature of the modern economy.

FAQs

No, a Non-Vessel Operating Common Carrier (NVOCC) does not physically transport goods. Instead, it acts as an intermediary in the shipping process, consolidating and arranging shipments with various ocean carriers. The actual transportation of goods is handled by the ocean carriers.

Yes, an NVOCC can issue its own bills of lading. This is a key characteristic that distinguishes NVOCCs from traditional freight forwarders. By issuing their own bills of lading, NVOCCs take on a greater role in the transportation process, providing a receipt for the shipped goods and assuming some of the responsibilities typically held by the ocean carrier.

Yes, an NVOCC has the authority to negotiate shipping rates with ocean carriers. Acting as an intermediary between shippers and carriers, NVOCCs leverage their relationships and shipping volumes to secure competitive rates for their clients. This negotiation aspect is one of the valuable services that NVOCCs offer to shippers seeking cost-effective and efficient ocean freight solutions.

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