What Is A NVOCC License.A Non-Vessel Operating Common Carrier (NVOCC) license is a document issued by the Federal Maritime Commission (FMC) in the United States. This license allows a company to operate as an NVOCC, which is a type of freight forwarder that does not own any ships but acts as a carrier in transporting goods by sea.
To obtain an NVOCC license, the company must meet certain requirements, including proving its financial stability, demonstrating its ability to provide reliable and efficient shipping services, and complying with various regulations and laws governing the shipping industry. Once the license is obtained, the NVOCC can issue its own bills of lading and negotiate rates with shipping lines, which allows it to offer competitive pricing and flexibility to its customers.
Overall, an NVOCC license is an important credential for companies that want to provide ocean freight transportation services, and it helps to ensure that they operate legally and meet the necessary standards of quality and reliability.
What Is A NVOCC License; 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 transport 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 the offering of 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 has the function of coordinating the movement of cargo through the services of other transport companies.
