Glossary
Non-Vessel-Owning Common Carrier (NVOCC)
Tags: Glossary
A firm that offers the same services as an ocean carrier but does not own or operate a vessel is known as a Non-Vessel Operating Common Carrier (NVOCC). NVOCCs typically act as consolidators, accepting small shipments (LCL) and consolidating them into full container loads. They also consolidate and disperse international containers that originate from or are destined for inland ports. Subsequently, they function as shippers by tendering the containers to ocean common carriers. NVOCCs are required to file tariffs with the Federal Maritime Commission and are subject to the same laws and statutes that apply to primary common carriers.
What is Non-Vessel-Owning Common Carrier (NVOCC)?
A Non-Vessel-Owning Common Carrier (NVOCC) is a crucial player in the world of logistics, particularly in the realm of ocean transportation. To put it simply, an NVOCC is a company that provides services similar to those of an ocean carrier, but without actually owning or operating any vessels.
One of the primary roles of an NVOCC is to act as a consolidator. This means that they accept small shipments, known as Less than Container Load (LCL) shipments, from multiple customers and consolidate them into full container loads. By doing so, NVOCCs enable businesses and individuals with smaller shipments to benefit from the cost savings and efficiency of shipping in containers.
In addition to consolidation, NVOCCs also play a crucial role in the movement of international containers to and from inland ports. They are responsible for consolidating and dispersing containers that originate from or are destined for these inland ports. This is particularly important as it allows for seamless transportation of goods between inland locations and major ports, facilitating global trade.
One key aspect of an NVOCC's operations is that they function as shippers. Once they have consolidated the shipments into full container loads, they tender these containers to ocean common carriers for transportation. In other words, NVOCCs act as intermediaries between the shippers and the ocean carriers, ensuring that the goods are transported efficiently and effectively.
It is important to note that NVOCCs are subject to the same laws and regulations that apply to primary common carriers. They are required to file tariffs with the Federal Maritime Commission, which helps regulate and ensure fair practices in the industry. This ensures that NVOCCs operate in a transparent and accountable manner, providing a level playing field for all stakeholders involved.
In conclusion, Non-Vessel-Owning Common Carriers (NVOCCs) are essential entities in the logistics industry, particularly in ocean transportation. They offer services similar to ocean carriers but do not own or operate vessels. NVOCCs act as consolidators, accepting small shipments and consolidating them into full container loads. They also facilitate the movement of international containers to and from inland ports. By functioning as shippers, NVOCCs ensure the smooth transportation of goods and adhere to the same laws and regulations as primary common carriers.