What is NVOCC?
Keep reading. What is NVOCC? NVOCC is an abbreviation for Non-Vessel Owning Common Carrier. It refers to operations involving sales, stuffing, and transportation of containers to various gateways ports. This ocean carrier transports shipments without operating any ocean shipping vessels under its house bill of lading.
Do non-US-based NVOCCs need a license?
Non-US-based NVOCCs are not required to obtain a license but can simply register with the FMC. From a company’s perspective, having an FMC license means NVOCCs can negotiate deals with the shipping lines. It also allows the NVOCCs to generate in house bills of lading, which is recognized as carrier bills.
What is an NVOCC Bill of lading?
Keep reading… What is an NVOCC? Acronym for Non-Vessel Owning Common Carrier, NVOCC are transport companies that organize shipments for their clients ‘independently’ i.e. – The company doesn’t own any vessels. It issues its bill of lading (B/L or BoL) or equivalent document.
What is an OTI license for NVOCC?
All NVOCC and freight forwarders are required to apply for an OTI license with the FMC in the United States. There are 3 types of license that one can apply depending on their requirements: This is the most popular license. It authorizes the company to a long list of things. Such as issue its bill of lading, set their prices for the shipments.
How much does NVOCC license cost?
Submit and pay the fee: $250 (for electronic application) and $1962 (for paper application). Step 6: Upon receiving the license, register and publish your NVOCC Charges.
What does an NVOCC do?
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.
What does NVOCC mean?
A Non-Vessel Operating Common Carrier (NVOCC) is an ocean carrier that transports goods under its own House Bill of Lading, or equivalent documentation, without operating ocean transportation vessels.
What is the difference between a freight forwarder and a NVOCC?
NVOCCs usually own and operate their own containers but don't have their own storage warehouses or distribution centers. Freight forwarders don't often have any of their own transportation equipment, but they do typically have or lease warehouses for goods to be stored during breaks in transit.
Are all freight forwarders NVOCC?
You must be a freight forwarder to be an NVOCC, but not all freight forwarders are NVOCCs.
Who is the largest NVOCC in the world?
Established in 1990 with its headquarters in California, USA, the Apex group is on the top of the list with other leading NVOCCs. Handling more than 425,000 TEUs of freight and 20,000 tonnes of airfreight per year, they also have 600,000 square feet of warehouse space in the USA.
What is the difference between VOCC and NVOCC?
NVOCC stands for Non-Vessel-Operating Common Carrier is someone who undertakes to perform all the services of a VOCC but without owning or operating vessels, as the name implies.. VOCC stands for Vessel Operating Common Carrier – also known variously as Ocean Carrier, Shipping line..
Who is the largest freight forwarder in the world?
and Freight Forwarding Volumes*A&A RankProviderAir (Metric Tons)1Kuehne + Nagel2,220,0002DHL Supply Chain & Global Forwarding2,096,0003DSV1,510,8334DB Schenker1,438,00021 more rows
How does NVOCC benefit new exporters?
The NVOCC purchases large blocks of space at a discounted rate from shipping lines and resells them in smaller blocks to other shippers. The NVOCC consolidates and transports shipments under a single bill of lading.
Is NVOCC a shipping line?
NVOCCs are not shipping lines as they don't own carriers. NVOCCs are special agencies that enter into agreements with multiple shipping lines and use their carriers to transport the cargo of their clients.
Do Freight Forwarders own vessels?
Containers: That might be the biggest difference, Freight Forwarders do not own any equipment while most NVOCCs operate their own fleet of containers.
Do Freight Forwarders own containers?
Freight forwarders do not operate or own containers, while NVOCCs manage or hold cargo containers. Freight forwarders typically own and operate the warehouses they use for the cargo they load to and from airports and seaports, while NVOCCs do not own and operate warehouses.
What is the difference between VOCC and NVOCC?
NVOCC stands for Non-Vessel-Operating Common Carrier is someone who undertakes to perform all the services of a VOCC but without owning or operating vessels, as the name implies.. VOCC stands for Vessel Operating Common Carrier – also known variously as Ocean Carrier, Shipping line..
What is the difference between freight forwarder and shipping company?
One of the main differences between a NVOCC and Freight Forwarder is that a customer (whether exporter or importer) “appoints” a freight forwarder to “act as their agent” whereas they “employ the services” of a NVOCC as one of their “service providers (not as agent)” in this case, as a carrier, same as they would a ...
What is the difference between carrier and forwarder?
A Common Carrier is a person or company that transports goods on regular routes at set rates. A Freight Forwarder is a person or company that organizes shipments for individuals or corporations to get goods from origin to destination; forwarders typically contract with a carrier to move the goods.
What is the difference between a freight forwarder and a logistics company?
3PL companies and freight brokers offer unique benefits to your business. Nevertheless, the significant difference between a freight forwarder and third-party logistics provider is that the freight forwarder focuses mainly on transportation. In contrast, 3PL providers will handle all aspects of logistics.
What is the difference between NVOCC and Freight Forwarder?
The general tasks of forwarder/NVOCC are booking cargo, organizing cargo movement, negotiating contract rates with various carriers, consultation, preparation, and processing of the relevant shipment documents. NVOCC also takes responsibility to organize shipments as well as to sign contracts with the shipping line and carrier ensuring that a specific number of containers can be shipped every year. On the other side, shipping lines, acting as a carrier also offer better rates to these companies.
What is a NVOCC?
How NVOCCs are different from Freight Forwarders. There are two common terms that are sometimes used interchangeably in the freight and shipping industry: NVOCC and Freight Forwarder. However, they are actually different; especially in terms of the liabilities and documentation. As defined by FMC, NVOCC stands for Non-Vessel Operating Common ...
What does NVOCC stand for?
As defined by FMC, NVOCC stands for Non-Vessel Operating Common Carrier and it is basically a company that takes care of shipment organization for corporations and individuals. Even Amazon has entered the NVOCC market.
What is the role of a shipper in a cargo?
The shipper acts as an actual exporter or shipper for the cargo.
What is an OTI off license?
OTI-OFF License: Operators having an OFF (Ocean Freight Forwarder) license is not able to perform all those activities that are permitted under the OTI-NVOCC license. However, they can collect commissions on carrier allotment while facilitating documentation and shipping to the involved parties.
How many years of OTI experience do I need to be a QI?
Step 1: First of all, the company needs to appoint a QI or qualifying individual with three years of valid OTI experience.
What is a forwarder's responsibility?
A responsibility that makes a forwarder’s liability insurance vital. They process and prepare documentation related to all shipment activities.
How much does an ocean freight forwarder license cost?
Licensed, U.S.-based NVOCCs and OFFs are required to submit proof of financial responsibility (most likely in the form of a surety bond), in the amount of $50,000 (for an ocean freight forwarder license) or $75,000 (for NVOCC license).
How many years of experience do I need to become an OTI?
A qualifying individual must have at least three years of demonstrable OTI experience and, depending on the applicant’s business structure, be an officer of the applicant’s corporation, the sole proprietor of a sole proprietorship, the manager or member in (respectively) a manager-managed or member-managed LLC, or a partner in a partnership.
How to report changes to FMC-18?
Other changes to information reported on the original Form FMC-18 may be reported by an officer of the company via email to [email protected] . For address changes, the surety company must send a bond rider to [email protected].
What form is needed for changes to licensee?
Form FMC-18 must be filed for any changes to a licensee:
Who must file FMC-65?
Form FMC-65 must be filed by a non-U.S.-based-registered NVOCC if any information reported on the original Form FMC-65 has changed.
Do you need a license to operate a freight forwarder?
U.S.-based companies or sole proprietors operating as Ocean Freight Forwarders (OFF) or Non-Vessel-Operating Common Carriers (NVOCCs) are required to obtain a license from the FMC. Non-U.S.-based NVOCCs may obtain a registration or license from the FMC.
For Ocean Transportation Intermediaries
Automated Application for a License as an Ocean Transportation Intermediary (Online FMC-18)
For Passenger Vessel Operators
Application for Certificate of Financial Responsibility ( Form FMC-131)
For Non-Attorneys Practicing Before the FMC
Application for Admission to Practice Before the Federal Maritime Commission ( Form FMC-12)
