What is an NVOCC and why is It Important in Global Logistics

“Non-vessel Operating Common Carrier.” An NVOCC is an ocean carrier, providing transportation services almost exactly like a steamship line. The main difference is that a steamship line owns vessels and shipping containers,an NVOCC plays the role of a cargo consolidator who leases or rents container space from a carrier and sells it to its customers.

The role of NVOCC in the shipping industry

NVOCCs are often referred to as A shipper to carriers and a carrier to shippers.Their intermediary role means they provide diverse services and benefits to their customers. Let us understand its usage in the shipping industry

Customised Services

NVOCCs are relatively small scale organisations, they can customise their service as per the needs of their client. Logistics functions can be customised and fulfilled by the NVOCC. Since they work with a variety of carriers, the numerous options on offer ensure you get the carrier that fits your needs. NVOCCs also offer tracking services for clients to trace their cargo when it is in transit. The longstanding relationships NVOCCs have with their network of truckers, carriers, and trade organisations enable them to ascertain risks to your supply chain, forecast costs, and recommend solutions.

The ease of documentation and legal uses of NVOCC

NVOCCs undertake the transportation of cargo under their own Bill of Lading called the House Bill of Lading (HBL), through transport vessel operators. Whereas, the Master Bill of Lading (MBL) is issued by the carrier to the NVOCC. The HBL is issued directly by the NVOCC to the consignor or shipper.The consignee in an MBL will be the ocean carrier’s agent or destination NVOCC, while an HBL will show the actual importer or receiver as the consignee. Hence, the two documents will be almost similar except in the shipper, consignee, and notify party fields.

The far-reaching network of NVOCCs

Having an in-depth industry know-how and customized IT systems, we manage the needs of our customers supply chains, no matter how demanding they might be through our wide network of partners.we have comprehensive national and international freight partnerships in conjunction with our own quality process oriented approach and strong customer focus.

Some Tasks NVOCCs perform:

* Responsible for transferring cargo from customers to the gateway of ports, ideally suited to cater to the needs of small and medium-sized organizations.

* Offer consultation, processing, and preparation of various shipping documents.

* Handling warehouse and transporting activities

* Negotiating contracts and other shipping-related tariffs, such as customs, ports,etc

* Cargo handling and transportation activities.