difference between Freight Forwarder (NVOCC) and a Freight Forwarder

With the increase in freight traffic at an international level as well as the progress of technologies applicable to the transport sector, external means are used today to fulfill any transport contract. For this reason, we recommend you read this article with which you will learn what is the difference between a cargo consolidator (NVOCC) and a shipper (Freight Forwarder)?

The cargo consolidator or NVOCC

NVOCC is the acronym for “Non-Vessel Operating Common Carrier” it refers to a common carrier service with which the work can be offered to the client or shipper, reserve space with the transport company , provide a guide on packaging, labeling and marking, as well as the location of the goods.

What is the Difference Between a Freight Forwarder (NVOCC) and a Freight Forwarder?

To execute all these processes, entrepreneurs recognize the importance of the money that must be invested in order to generate profits when the merchandise reaches its destination and is sold.

What is a freight forwarder or shipper?

For its part, a freight forwarder or freight forwarder refers to a service that allows the use of maritime transporters, companies with cargo trucks, rail transport, arranging the movement of merchandise and coordinating the movement of cargo .

What is the difference between a Freight Forwarder (NVOCC) and a Freight Forwarder?

Once the company establishes an analysis of the organizational markets , it is important that it knows that both the cargo consolidator (NVOCC) and the shipper can provide customer-shipper service, establish cargo and transportation insurance , as well as offer advice on foreign import regulations. However, there are some differences that we will mention below.

Offering the service

One of the differences between the cargo consolidator (NVOCC) and the shipper is related to offering a service . The first is useful for customs agents and other intermediaries.

However, a shipper can serve exporters or importers by contracting a type of intermodal transportation. To do this, it is advisable for the freight agency to know the interest and inflation rates of each region where it will offer its service.

The functions

Generally, the freight forwarder may have the function of transporting a shipper. It is important to note that a cargo consolidator cannot make use of its own ships and for this reason they use services offered by third parties.

For its part, a Freight Forwarder shipper is directly linked to the goods and its function is to coordinate the movement of cargo through the services of other transport companies.

Entry regulations to another country

Taking advantage of international banking allows establishing a business link. In this sense, it is important to note that entry regulations to another country are different between the cargo consolidator and the shipper. Shippers can gather all the necessary documentation to enter the countries of their clients and in this way comply with foreign regulations .

For its part, the cargo consolidator has its own air waybills or bill of lading tickets. To achieve this, an amendment is made to the commercial invoice and thus compliance with the regulations established by the foreign country.

The responsibilities

The responsibilities of a Freight Forwarder (NVOCC) are different from a Freight Forwarder. In this regard, a NVOOC must accept the charges derived from delayed delivery of the merchandise, physical damage or loss.

While shippers have a liability that is limited to certain acts such as negligence although they are exempt from the charges of the carrier .

Some exceptions

Often no distinction is made between the Freight Forwarder (NVOCC) and the Freight Forwarder. However, the United States considers through its legislation a clear difference so that an NVOCC does not require an authorization, but it does require the payment of a fee to the Federal Maritime Commission .

In addition, the cargo consolidator must generate its own documents that will depend on the management of a shipping line and a cargo agency.

by Abdullah Sam
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