What are the benefits of NVOCC?

What are the benefits of NVOCC?

Here are the top 5 reasons you should use an NVOCC:

• Price Stability. International shipping rates increased six times in 2013, either by a general rate increase (GRI) or peak season surcharge (PSS). …
• Capacity. …
• Flexibility. …
• Service. …
• Visibility.

What is the difference between NVOCC and ocean freight forwarder?

An NVOCC is an intermediary between the shipper and the vessel operator and issues their own bills of lading. A freight forwarder is an authorized agent acting on behalf of the shipper.

What is NVOCC consolidation?

In practice, NVOCC collect cargo (goods), consolidate and deconsolidate the goods of various clients within the same container. That’s why they are also called consolidators. In brief, they are transport capacity buyers who then sell that capacity to their own clients under their own liability.

What is the difference between NVO and NVOCC?

A Non-Vessel-Operating Common Carrier is a shipping industry term that refers to a type of Ocean Transportation Intermediary (OTI), is often abbreviated by the industry to NVOCC, and sometimes even shorter to NVO. These two abbreviations are interchangeable and describe the same entity.

How exporters or importers are benefited by using the services of NVOCCs?

One of the biggest advantages of using NVOCCs is that they provide an array of transport options for your cargo as these agencies sign agreements with multiple shipping lines. Hence, you get a bouquet of transportation choices and can choose the one that best caters to your needs.

Why are NVOCCs so popular?

NVOCC’s give you more flexibility with rates. Much of this has to do with the established networks and relationships maintained by NVOCC’s who are often able to get fixed, or low rates on batches of shipments. Utilizing an NVOCC for this purpose can reduce your costs.

Why do you think that NVOCC should have a contract with ocean carriers?

NVOCCs sign contracts with shipping lines to guarantee the shipment of a certain number of containers each year. In return, shipping lines offer favorable rates to NVOCCs. Their main tasks compromises sales, staffing and transport of the containers to the specific ports.

How do NVOCC work?

NVOCC operation comprises of sales, stuffing and transport of the containers to gateway ports. The bill of lading issue and overseas distribution is taken care by the agents of NVOCC. Description: An NVOCC signs contracts with shipping lines to guarantee the shipment of certain number of units each year.

What is the difference between shipping line with NVOCC?

Some basic definitions NVOCC stands for “non-vessel operating common carrier.” An NVOCC is an ocean carrier, providing transportation services almost exactly like a steamship line. The main difference is that a steamship line owns vessels and shipping containers, while an NVOCC does not.

Who is the largest NVOCC?

Top 20 NVOCCs Ranked by US Import Volumes

What is example of NVOCC?

Some of the top VOCCs around the globe include Maersk, APL, CMA CGM, etc. NVOCCs sell cargo or container space onboard mainline transport vessels, to their customers. They lease or rent this space onboard ships, and sell it to their clients.

How do I get NVOCC?

How to Apply for an NVOCC License?

1. Appoint a Qualifying Individual (QI)
2. Fill Out the FMC-18 Form.
3. Submit the Form and Pay the Application Fee.
4. Establish a Presence in the U.S (for non-US-based applicants only)
5. Submit Proof of Financial Responsibility.

What is an NVOCC carrier?

What is a Non-Vessel Operating Common Carrier (NVOCC)? An ocean carrier who performs all of the services of a carrier, but who does not own their own vessel(s). They operate by leasing or buying available space in containers and using their own House Bill of Lading to contract with customers.

Is Flexport an NVOCC?

“Ocean carrier” generally refers to VOCCs, who own and operate ocean vessels. An NVOCC, like Flexport, arranges the transportation of cargo with an ocean carrier.

How many NVOCC are there?

6000 registered NVOCCs operating in USA and a large number of them are active in Asia Pacific, Europe, Africa and Middle East regions.

What does FMC mean in shipping?

The Federal Maritime Commission (FMC) is the independent federal agency responsible for regulating the U.S. international ocean transportation system for the benefit of U.S. exporters, importers, and the U.S. consumer.

What does CFS stand for shipping?

CFS (Container Freight Station) refers to a warehouse where goods belonging to various exporters or importers are consolidated (grouped) or deconsolidated (degrouped) before being exported or after being imported.

Is Expeditors an NVOCC?

Expeditors is a licensed Ocean Transportation Intermediary and world-class Non-Vessel Operating Common Carrier (NVOCC).