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Freight Forwarder Vs. NVOCC: What’s The Difference?

By: PrimeLogistics | April 21, 2023


When it comes to shipping goods internationally, several parties are involved in the process. Two of the most crucial players in this process are freight forwarders and non-vessel operating common carriers (NVOCCs).

Freight Forwarders

A sea freight forwarder is a company that specializes in arranging and organizing the shipment of goods from one location to another. They act as intermediaries between shippers and carriers and are responsible for managing the logistics of the shipment. Sea Freight forwarders are experts in the transportation industry and have a wide range of knowledge about shipping regulations, customs clearance, and documentation requirements.

Freight Forwarders offer a range of services

Sea freight services arrange for the transportation of goods from the point of origin to the destination. They work with various carriers, including air, sea, and land, to find the best transportation options for their clients. Sea Freight forwarders are responsible for ensuring that all customs clearance requirements are met. They handle the necessary paperwork and documentation to ensure that the goods can pass through customs without any issues. Freight forwarders can arrange for cargo insurance to protect the goods during transit. Freight forwarders can arrange for the storage of goods at a warehouse or storage facility until they are ready to be shipped.

NVOCCs

A non-vessel operating common carrier (NVOCC) is a company that provides transportation services without owning any vessels. NVOCCs do not have their ships but are responsible for booking cargo on behalf of their clients with ocean carriers. NVOCCs act as intermediaries between shippers and ocean carriers, much like freight forwarders.

NVOCCs offer a range of services

NVOCCs book cargo on behalf of their clients with ocean carriers. They negotiate rates and ensure that the cargo is transported safely and efficiently. NVOCCs consolidate small shipments from multiple clients into one container to reduce costs and increase efficiency. NVOCCs issue bills of lading to their clients, which serve as a contract between the shipper and the carrier. NVOCCs handle all the necessary documentation for the shipment, including customs clearance and other regulatory requirements.

Difference between Freight Forwarders and NVOCCs

While both freight forwarders and NVOCCs play a crucial role in the shipping industry, there are some key differences between them. The primary difference is that freight forwarders provide a broader range of services than NVOCCs. Freight forwarders handle all aspects of the transportation process, from booking cargo to arranging customs clearance and insurance. NVOCCs, on the other hand, specialize in booking cargo with ocean carriers and do not offer the same range of services as freight forwarders.

Another difference is that NVOCCs work exclusively with ocean carriers, while freight forwarders work with various carriers, including air and land. Freight forwarders have a more extensive network of carriers, allowing them to find the most efficient and cost-effective transportation options for their clients.

Conclusion

In conclusion, both freight forwarders and NVOCCs play critical roles in the shipping industry. Freight forwarders offer a broader range of services, while NVOCCs specialize in booking cargo with ocean carriers.



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