Definition
A carrier that issues its own bills of lading and sells ocean transport without operating the ships.
An NVOCC acts as a carrier to the shipper — issuing its own house bill of lading and taking contractual responsibility for the cargo — while buying space from the vessel-operating ocean carriers. In effect it is a wholesaler of ocean transport.
Many freight forwarders operate as NVOCCs, which lets them control their own documentation, consolidate cargo, and offer rates independent of any single line. The trade-off is the added liability of being a contractual carrier rather than a pure agent.
Related terms
Freight Forwarder
An intermediary that arranges and coordinates the transport of goods on behalf of shippers and consignees.
Carrier
The party that physically transports the goods and contracts to carry them, e.g. a shipping line or airline.
Bill of Lading (B/L)
The carrier’s document that acts as a receipt for cargo, a contract of carriage, and a document of title.
Ocean Freight
The transport of goods by sea, the dominant mode for high-volume international trade.
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