What is the NVOCC
NVOCC stands for Non-Vessel Operating Common Carrier. NVOCCs are essentially shipping consolidators; they book or lease cargo space from actual carriers (those owning the vessels) in large quantities at discounted rates and then sell this space to shippers in smaller amounts. They handle the shipping of goods without owning the ships that carry them, providing flexibility and cost-effective solutions for small and medium-sized enterprises (SMEs) that might not have the volume to book full containers directly with vessel operators.
How NVOCC Works
Agreement with Carriers: An NVOCC signs agreements with shipping lines to secure cargo space on various vessels. These agreements allow them to offer competitive rates to their clients by leveraging bulk purchasing. Cargo Consolidation: One of the critical services of an NVOCC is cargo consolidation. They collect smaller shipments from multiple shippers and combine them into a full container load (FCL). This process allows shippers to take advantage of containerized shipping rates without filling an entire container. Documentation and Compliance: NVOCCs handle all necessary documentation for shipping, including bills of lading, export and import documentation, and customs clearance. They are well-versed in international trade's legal and regulatory requirements, making the process smoother for shippers. Freight Forwarding: Besides booking space on ships, NVOCCs often provide additional freight forwarding services, including inland transportation, warehousing, and distribution. They act as a one-stop shop for shipping and logistics needs.