NVOCC means Non Vessel Operating Common Carrier. NVOCC books large quantity of space with ship and sells space to shippers in smaller amounts. NVOCC consolidate small shipments of LCL (less container load) and issues HBL (House Bill of Lading). NVOCC also undertake the services provided by a freight forwarder.
Document Transfer/Handover Fee
NVOCCs, international freight forwarders and customs brokers often charge for transferring documents to another transportation company at destination. This fee is a part of the ocean freight charges, being paid by the importer at the port of discharge in the International Commercial Term (incoterm) FOB (free on board), and by the exporter at the origin in the incoterms CFR (cost and freight) and CIF (cost, insurance and freight). This fee is separate from documentation fees charged by carriers and NVOCCs as part of the freight charges on a bill of lading and is separate from other fees for document preparation or for release of cargo. Some companies call this an administration fee, document fee, document transfer fee, but it exists in some form in most destinations and is well known to most shippers. Steamship carriers do not have this fee.
Connection between Shipper and NVOCC
NVOCC is in certain areas accorded the status of a virtual “carrier” and in certain cases accepts all liabilities of a carrier. NVOCC operator takes on the role of the carrier, for sure the shipper can negotiate rates directly with the NVOCC operator and that is what the NVOCC also requires. There is no separate documentation involved in negotiating rates or dealing directly with the NVCCO.
One of the main differences in dealing with an NVOCC or a direct shipping line is that in the case of an NVOCC, they will issue their own bill of lading which in various circles is known as a House Bill of Lading, but this is a bill of lading that is acceptable to banks, chambers of commerce and other entities as a negotiable bill of lading when issued as such.
Differences between NVOCC and Freight Forwarder
Below are some differences which separate these two entities.
(1) The NVOCC can and sometimes do own and operate their own or leased containers whereas a Freight Forwarder does not.
(2) In certain countries like USA, the NVOCC operators are required to file their tariffs with the government regulatory bodies and create a public tariff.
(3) NVOCC is in certain areas accorded the status of a virtual “carrier” and in certain cases accepts all liabilities of a carrier.
(4) A Freight Forwarding company can act as an agent/partner for a NVOCC whereas it doesn’t happen the other way around.
Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020,Dongmen Rd South, Luohu, Shenzhen, China.
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