NVOCC is an abbreviation for Non-Vessel Operating Common Carrier. It is a freight forwarding company that does not own or operate the vessels used to transport cargo. Instead, they hire other shipping companies to transport goods on their customers' behalf. They are in charge of organizing the shipment's details, including cargo pickup and delivery, and they issue their own bills of lading. In the United States, NVOCCs are governed by the Federal Maritime Commission (FMC).


  • How NVOCC can provide better rate than the main shipping carriers

Because they have the ability to negotiate volume discounts with the shipping lines with whom they have contracts, NVOCCs can frequently offer lower rates than traditional carriers. Because they are arranging multiple shipments at the same time, they can use their purchasing power to secure lower rates for their customers. Furthermore, NVOCCs frequently have established relationships with a diverse range of carriers, allowing them to compare rates and select the most cost-effective option for each shipment.



Another benefit of using NVOCCs is that they can provide more flexible and personalized service than traditional shipping companies. They may be able to offer more frequent sailings, faster transit times, or specialized cargo handling. They may also provide a number of shipping options and routes to choose from, which can be advantageous for shippers with specific logistics requirements.



Additionally, NVOCCs can serve as a one-stop shop for their customers, offering a variety of logistics services such as freight brokerage, customs clearance, warehousing, distribution, and packaging. Customers can save time and money by not having to deal with multiple service providers.



Another benefit of using NVOCCs is that they can offer greater flexibility in terms of payment options and billing methods. When it comes to payment, main shipping carriers may have strict terms and conditions, but NVOCCs may be more willing to work with customers to find a payment solution that meets their needs. They may also be more willing to negotiate payment terms and provide more billing method flexibility.




NVOCCs also tend to be more customer-focused, which makes it easier for shippers to work with them. They may be more attentive to customer needs and more willing to go above and beyond to ensure that shipments arrive on time and in good condition. This is especially useful for shippers dealing with time-sensitive or high-value cargo.


In conclusion, NVOCCs can provide better rates than major shipping carriers by leveraging their purchasing power and established relationships, providing more flexible and personalized service, acting as a one-stop-shop for logistics services, offering more flexibility in terms of payment options and billing methods, and having a more customized approach.