NVOCC - FREQUENTLY ASKED QUESTIONS (FAQS)

NVOCC means Non Vessel Owning Common Carrier. A NVOCC books large quantity of space with shipping lines and sells this space to shippers in smaller quantities. NVOCC consolidates small LCL (Less than Container Load) shipments and issues HBL (House Bill of Lading). NVOCC also undertakes the services provided by a freight forwarder.

Freight forwarders are agents to shippers, while NVOCCs are carriers to shippers. Freight forwarders do not operate or own containers, while NVOCCs manage or hold cargo containers. Freight forwarders may function as an agent of NVOCCs, but NVOCCs work independently and under their own responsibility.

NVOCC stands for Non Vessel Owning Common Carrier. NVOCC operations comprise of sales, stuffing and transport of the containers to gateway ports. NVOCC books space with shipping lines and sells it to shippers. In return, the shipping lines offer favourable rates to the NVOCC. Thus, NVOCC ends up being the largest trade-maker for container shipment.

NVOCC is a Non Vessel Owning Common Carrier, who performs all services of an ocean carrier except without operating the vessels.

The OTI-NVOCC license is the most popular: it authorizes the licensee to issue its own House Bills of Lading (HB/L), to set its own selling rates for ocean and intermodal shipments, and to enter into service contracts with ocean carriers to purchase transportation services.