Difference between a NVOCC and freight forwarder

Difference between a NVOCC and Freight Forwarder

A NVOCC which is the abbreviation for Non-Vessel Operating Common Carrier maybe defined as a “carrier to shippers” and “shipper to carriers”..

A Freight Forwarder is someone who undertakes to handle the movement of goods from point to point on behalf of the cargo owner..

Functionally the NVOCC is ALMOST the same as a Freight Forwarder in terms of his activities.. However there are some differences which separate these two entities..

  • The NVOCC can and sometimes do own and operate their own or leased containers whereas a Freight Forwarder does not..
  • In certain countries like USA, the NVOCC operators are required to file their tariffs with the government regulatory bodies and create a public tariff..
  • NVOCC is in certain areas accorded the status of a virtual “carrier” and in certain cases accepts all liabilities of a carrier
  • A Freight Forwarding company can act as an agent/partner for a NVOCC..

Apart from the above major differences, all other activities between these two entities are similar to each other.. You can read more about this in my previous post reg the back to back bill of lading (http://shippingandfreightresource.com/2009/11/23/what-is-a-back-to-back-shipment/)

Now that you have read it, why don't you share your views about it..

28 comments on “Difference between a NVOCC and freight forwarder

  1. Abdel says:

    I need to understand when is a container considered as Over weight ? OW and will incur insto additional surcharge beacuse of this. As per standars info there are limits / max weight declare per each box type / size but I noticed for example that a 20GE hast a limit of 30,000 pound but carriers charged me for overweight over 27Tons. why is that and what are those limits for OVER weight?

    1. Hello Abdel, I have responded to this as a post (http://shippingandfreightresource.com/when-is-a-container-considered-as-over-weight/) for others also to know and follow..

  2. Jagdish Bisht says:

    what is F178, Certificate of Origin ?

  3. Gustavo says:

    I will be starting as a Customer Service Representative for a local freight consolidator. I would like to learn as much as I can about the shipping industry. I’m very eager to learn.