NVOCC function

A NVOCC is often termed as a “carrier to shippers” and “shipper to carriers”. What does this mean?

At the most basic level, a NVOCC enters into volume based ocean freight arrangements with the various shipping lines operating across the various trade lanes. A NVOCC then creates their own tariff based on which they sell space on these liner services to their various clients.

A NVOCC’s client list may include

• BCO – Beneficial Cargo Owner which is another term for Exporter or Importer
• Freight Forwarder
• Clearing Agent
• Freight Broker

Depending on certain jurisdictions and markets, NVOCC’s activities may include but not restricted to below:

• concluding contracts of international carriage of goods with the shippers as carriers;
• receiving cargo and delivering cargo as carriers;
• issuing bills of lading (usually a House Bill of Lading) or other transport documents;
• collecting freight and other service charges;
• booking space and arranging shipping with mainline carriers;
• paying port to port transportation freight or other transportation charges;
• consolidation and deconsolidation of containers either using own CFS or 3rd party