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Overview of Non Vessel Operating Common Carrier

Updated:2017-7-5 13:00:33    Source:www.tannet-group.comViews:790

Non-vessel operating common carriers (NVOCCs) are similar to traditional freight forwarders, but with some important differences, mostly in terms of taking more responsibility than a traditional freight forwarder can. NVOCCs can be a person or a company that organizes shipments for individuals or corporations to get goods from the manufacturer or producer to a market, customer or the final point of distribution. NVOCCs do not actually move the goods but acts as an expert in the logistics network. That is why they are most widely known as ‘Freight Forwarders’.

Benefits of Non Vessel Operating Common Carrier
Efficient consolidation of smaller shipments into container loads
Multi Vendor Consolidation
Optimization of Container Utilization
Automate and Optimize Shipping documentation
Real time visibility into node level operations
Alerts on Loading /Unloading of Cargo

Difference between NVOCC and Freight Forwarder
Strictly speaking, there are distinct differences between NVOCCs and freight forwarders; the biggest one is how they act in relation to the cargo. An NVOCC acts as the carrier of the cargo being sent. In comparison, a freight forwarder doesn’t act as a carrier. A freight forwarder only acts in the behalf of the owner of the cargo to facilitate the passage of the cargo from the point of origin to the destination.

Secondly, freight forwarders do not issue a bill of lading while NVOCCs do. A bill of lading is also known as a contract of carriage and is a legal document that binds both parties to the terms agreed upon. A bill of lading is important as it holds the NVOCC liable if and when the cargo becomes lost or damaged while in transit where compensation is often necessary.

All in all, an NVOCC acts as the carrier, issues a bill of lading and is responsible for loss or damage, while a freight forwarder doesn't have such functions.

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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