What is an NVOCC?

If you’re a freight forwarder aiming to be more competitive, you’ve likely heard the term NVOCC. But what does it mean?

NVOCC stands for Non-Vessel Operating Common Carrier. It’s a company that provides ocean freight services but doesn’t own or operate its own vessels. Instead, an NVOCC buys space on ships operated by others, consolidates smaller shipments into full containers, and issues its own bills of lading to the shippers.

In simple terms, an NVOCC acts like a bridge between the shipper and the carrier, arranging the transportation of goods by sea.

Define NVOCC: What You Need to Know

To define NVOCC more clearly, let’s break it down:

– Non-Vessel Operating: The company doesn’t own or operate ships.
– Common Carrier: The company offers its services to the general public, transporting goods for multiple clients.

An NVOCC is essentially a hybrid between a shipping line and a freight forwarder. It operates as a carrier, handling large volumes of freight, but without the overhead of owning a fleet of ships.

NVOCC and Freight Forwarders: How Are They Connected?

As a freight forwarder, you might wonder how NVOCC fits into your world. While both NVOCCs and freight forwarders arrange the transportation of goods, they operate slightly differently.

– Freight Forwarder: Acts as an agent for the shipper, coordinating all aspects of the shipment. This includes booking cargo space, preparing shipping documents, and arranging customs clearance.

– NVOCC: Acts as a carrier to the shipper but a customer to the shipping line. An NVOCC can issue its own bills of lading and take on more responsibility for the cargo than a traditional freight forwarder.

Difference Between Freight Forwarder and NVOCC

Now that you know what an NVOCC is, let’s look at the key differences between a freight forwarder and an NVOCC:

1. Responsibility:
– A freight forwarder acts as an intermediary, facilitating the transport of goods but not taking on full responsibility for the cargo.
– An NVOCC takes on the role of a carrier, issuing its own bill of lading and often assuming liability for the shipment.

2. Legal Status:
– Freight forwarders are considered agents, representing the shipper in dealings with carriers.
– NVOCCs are considered carriers themselves, though they don’t own ships.

3. Documentation:
– Freight forwarders typically handle the paperwork for shipping but don’t issue bills of lading in their name.
– NVOCCs issue their own bills of lading, which are legally recognized documents of title for the cargo.

4. Regulation:
– NVOCCs operating in the U.S. must have an NVOCC license from the Federal Maritime Commission (FMC), while freight forwarders may not require such licensing, depending on the services they offer.

NVOCC License: Why It Matters

To operate legally as an NVOCC in the United States, you need an NVOCC license from the U.S. Federal Maritime Commission (FMC). This license is crucial for any company looking to provide ocean freight services in the U.S. market.

The FMC license ensures that your business complies with U.S. maritime regulations, protecting both your company and your clients. Without this license, you can’t legally issue bills of lading or offer NVOCC services in the U.S.

How to Find NVOCC Companies in the USA

If you’re looking to partner with or compete against top NVOCC companies in the USA, you can find a list of licensed NVOCCs by visiting the FMC website. Here’s a simple guide on how to do it:

1. Visit the FMC Website: Go to https://www2.fmc.gov/oti/NVOCC.aspx , the official site of the Federal Maritime Commission.

2. Enter Search Criteria: You can search by company name, FMC number, or even by state. If you’re looking for the top NVOCC companies, you might want to explore companies with a large number of filings or extensive operations.

3. Review the Results: The search results will give you details about each NVOCC, including their license status and any disciplinary actions. This helps you verify the credibility of the NVOCCs you’re interested in.

Obtain NVOCC License for US Market

To operate as an NVOCC for U.S. Market, NVOCC must obtain the NVOCC License called FMC License from the U.S Federal Maritime Commission (FMC). Getting the FMC License is no easy task, along with paperwork and eligibility, NVOCC must follow through with the compliance duties to maintain the license such as Tariff Filings. You can read the guide on getting FMC License here

Top NVOCC Companies In The US

While there are many NVOCC companies operating in the U.S., a few stand out due to their size, reputation, and market presence. These companies are known for their extensive networks, reliable services, and compliance with regulations.

Some of the top NVOCCs include:

– Expeditors International: A global logistics company that offers a range of freight services, including NVOCC operations.

– Kuehne + Nagel: Known for its extensive global network, Kuehne + Nagel is a leader in sea freight and NVOCC services.

– DHL Global Forwarding: Part of the DHL Group, this company provides comprehensive NVOCC services alongside its broader logistics offerings.

– Sinotrans: One of the largest logistics companies in China, Sinotrans also operates as an NVOCC in the U.S. market.

These companies have built their reputation by offering reliable, efficient, and compliant NVOCC services, making them leaders in the industry.

Final Thoughts

Becoming an NVOCC is a powerful way for freight forwarders to stay competitive in the fast-paced world of international shipping. By understanding the **NVOCC meaning**, defining how it differs from traditional freight forwarding, and securing the necessary licenses, you can expand your services and tap into new markets.

Whether you’re looking to become an NVOCC yourself or partner with one, knowing how to navigate the FMC website and identify top NVOCC companies will give you a significant advantage. Remember, the NVOCC model isn’t just about moving goods—it’s about providing value-added services that set you apart in the global shipping industry.