Non-vessel operating common carrier or NVOCC is almost similar to that of a freight forwarder that is, according to their activities. However, there are differences that makes both entities separate than the other. In an NVOCC, anyone could act as a bearer hence even a private individual which does not participate in any commercial activities.
In an NVOCC any person could act as the carrier even a private person which does not engage in commercial shipments. That being said, the carrier does not need to be an owner of a transportation equipment, anyone could have the status as the bearer by accepting the transport obligation and responsibility on moving the cargoes.
In an NVOCC company, any person could be the bearer, even those that do not appoint in commercial activities. One doesn’t need to be the owner of the ship as long as one will acquire the carrier status and assumes the responsibility of transporting cargoes and several other transport obligation. NVOCCs offer their services to companies such as consolidation warehouse, trucking companies, rail freighters ocean freighters and air cargo lines.
Big shippers transporting smaller amounts of cargo can take full advantage on the lower costs by using such transaction. Most often than not, NVOCCs book space on carriers with smaller costs and in large quantities for transport, thus the term less-than-container loads. LCLs allow their clients to consolidate their product with the others and the costs will be shared, providing favorable rates.
On the other hand, a freight forwarder is a person or company which organizes forwarding for corporations or individuals to get goods from the producer or the manufacturer. Primary advantage of freight forwarding services is the ability to outsource activities such as customs clearing, customs documentation, risk management, warehousing and insurance services.
Shippers that would like to move goods in small amounts should be taking advantage on the smaller costs offered by an NVOCC company. But with the number of NVOCC companies in the market it could be utterly confusing to choose which one could guarantee quality work. When one is considering for an NVOCC several factors have to be considered.
Both NVOCCs and freight forwarders are responsible in documenting exports, marking and labeling of commodities, establishing cargo insurance, booking space with carriers, advising shippers on foreign import regulations, arranging the containers, providing guidance on proper packaging and other related issues.
More so, consider a company that has been in the business for years but have maintained a good reputation among customers. This way you will have more trust and confidence with the company who will be handling your product. Expertise is highly important in this industry or risk damaging your product or delay delivery due to several problems or worse violations in sea freight forwarding. Be very meticulous with whom you choose, gather enough information on your potential choices and spare enough time for it as well.
There are several non-vessel operating common carrier companies in the industry today, make sure to find a reliable, trustworthy and well experienced company to ensure quality service and safety of the transported items.
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