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/)
Simply fill your email address below and Voilà!, you will get it in your inbox..