NVOCC vs. Freight Forwarder: What's the Difference?

Описание: There are many parties involved in the logistics process—carriers, freight forwarders, NVOCCs, 3PLs, EMCs, ETCs, customs brokers and more. It can get overwhelming! This video will focus on two of the most similar but distinct parties: freight forwarders and Non-Vessel Operating Common Carriers, or NVOCCs.

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► 4 Things the Best Freight Forwarders Have in Common: https://www.shippingsolutionssoftware...
► Freight Forwarder vs. 3PL Services: Which Do You Need?: https://www.shippingsolutionssoftware...
► Export Procedures and Documentation—An In-Depth Guide: https://www.shippingsolutionssoftware...

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NVOCC
A Non-Vessel Operating Common Carrier performs the functions of an ocean carrier but doesn’t operate the ships. Instead, an NVOCC buys space from carriers and sells this space to shippers. They take on some responsibilities and liabilities of the carrier, including issuing a house bill of lading.

Freight Forwarder
On the other hand, freight forwarders are experts within the supply chain who handle the logistics and physical transportation of cargo. They work with various carriers—by truck, boat, plane or a combination of these—to ensure your goods move smoothly from point A to point B. Think of them as travel agents for your products.

So, how do they differ? Here are some key distinctions:
—You must be a freight forwarder to be an NVOCC, but not all freight forwarders are NVOCCs.
—NVOCCs always arrange ocean transportation, while freight forwarders may arrange ocean, air or inland transportation.
—NVOCCs can add a profit percentage to their rates. Freight forwarders can only add operational fees.
—When it comes to documentation, NVOCCs issue their own bills of lading, acting as intermediaries between the shipper and the vessel operator. Freight forwarders act as authorized agents on behalf of the shipper. For an additional fee, the freight forwarder will generate required shipping documents and file through AES.

How to Choose
When choosing between an NVOCC and a freight forwarder, it boils down to the level of service you need. If you’re experienced and only need to book passage on an ocean vessel, an NVOCC might save you money. But if you need comprehensive support—like identifying the best routes, negotiating rates and handling documentation—a freight forwarder is well worth the additional expense.

As you grow your relationship with a freight forwarder, periodically discuss your needs and evaluate their services. If you eventually need an NVOCC, your freight forwarder can recommend one. Or you might find it beneficial to work with a company that combines both services.

Remember, whether you’re working with a freight forwarder or an NVOCC, you are still responsible for ensuring accurate documents and complying with import-export regulations. While you can outsource the responsibility, you can’t outsource the liability. Ensure your paperwork is always in order.
That’s something Shipping Solutions can help with.

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Chapters
00:00 Introduction
00:49 NVOCC
01:14 Freight Forwarder
01:36 The Differences Between an NVOCC and Freight Forwarder
02:28 How to Choose

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