Difference between Slot charterer and NVOCC Operator

What is the Difference between Slot charterer and NVOCC Operator..??

This was one of the interesting questions one of the readers of this blog asked me..

NVOCC Operator = Non-Vessel Operating Common Carrier

  • The NVOCC can and sometimes do own and operate their own or leased containers
  • 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

Slot Charterer = while an NVOCC may or may not have their own containers, a Slot Charterer almost always is an actual shipping line who belong to a consortium or service but may not be operating a vessel on that service.. Instead, the shipping line chooses to buy certain amount of “slots” (space on board a ship) from the principal vessel operators on every vessel.. These “slots” may or may not be fixed for a voyage or for the duration of the consortium.. Example : Hapag Lloyd who is currently No.5 in the world as per the list of Top 100 shipping lines as per Alphaliner, is a slot charterer on the MSC Service to and from South Africa/Europe.. Even though Hapag Lloyd has many of their own ships and services, on this trade, they choose to operate as a slot charterer.. Similarly there are many shipping lines that charter (or hire) space or slots on a service where they don’t operate vessels..

The slot charterer functions as an independent shipping line and use their own equipment and bill of lading and has their own account with the port and the port invoices them directly for their charges.. They have no obligation to share commercial information with the vessel operator..

What did you think of the above article..?? Comment below..

11 comments on “Difference between Slot charterer and NVOCC Operator

  1. Santan says:

    Is this related to shipping alliances?

  2. Shankar Pilane says:

    Dear Hariesh,

    First of all thanks a lot for your blog. It gives us immense knowledge about shipping. Keep up the good work my friend.

    1. You are most welcome Shankar.. Please do share it with your peers as well.. You can also contribute through comments on all the topics..

  3. Usman says:

    Good one… very helpful.. thanks

  4. peter mwangi says:

    This article is of great importance as very few sites touching on shipping matters. Great job and keep up.

  5. Suman Dhawa says:

    its good to see info on shipping which will help new guys with terminology

  6. Nishant J says:

    Helps a lot. Thanks a ton mate.

  7. marine jobs says:

    Really nice blog..Thanks for differentiating Slot charterer and NVOCC Operator..Great.

  8. Tina says:

    wonderful.. it is nice see the shipping blogger. first i am seeing in the internet.keep in up nice information.

    1. hassan says:

      Dear Hariesh,
      can freight forwarding company be a slot charter ?
      Thanks
      Hassan

    2. Hassan, no.. It is not done that way.. Slot charterers are usually shipping lines already operating in several routes and will have their own containers either on the same route that they want slots or other routes.. Lines that offer slot purchase will offer it only to reputed shipping lines and not just anyone..

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