What is the concept of Freight Forwarder and NVOCC? What is the difference between Freight Forwarder and NVOCC? This article will clearly explain the difference between these two concepts for everyone to understand better.
The concept of FREIGHT FORWARDER and NVOCC in countries with professional freight industry is very clearly distinguished. However, in developing countries about this service, there is still a lot of confusion. So in this article, we will show the difference between FREIGHT FORWARDER AND NVOCC for your reference and understanding correctly.
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In this article, we will clearly analyze the content of FREIGHT FORWARDER and NVOCC to help customers distinguish these concepts.
Concept FREIGHT FORWARDER and NVOCC
To analyze the difference between FREIGHT FORWARDER and NVOCC, we must first understand their concepts as follows:
The concept of Freight Forwarder
Freight Forwarder is providing 3rd party freight services (Third party Logistics – 3PL). Freight Forwarder companies provide international freight, sea and air freight services. In addition, these companies will help customers declare customs procedures, prepare transport documents and provide warehousing and delivery services.
The concept of NVOCC (Non-Vessel Operating Common Carrier)
NVOCC stands for Non-Vessel Operating Common Carrier, is a company doing business in the field of ocean freight, is considered a sea carrier (Carrier) but is different from shipping lines (Shipping Line) which means they owns no ships. But this company has the ability to issue secondary bills of lading (House B/L) for customers and has the ability to provide price lists (Tariff Rates), the ability to sign service contracts (Service Contact) with customers. shipping lines. To become an NVOCC company you must first be a Freight Forwarder.
Difference between Freight Forwarder and NVOCC
The difference between FREIGHT FORWARDER and NVOCC is shown in the following points:
NVOCC only refers to the service of providing sea freight while Freight Forwarder has a broader concept, it provides services for many forms of transportation by sea, land, and air.
Freight Forwarder can make reservations with shipping lines (Shipping Line) to meet customer needs but cannot make reservations to North America (North America Trade) but must go through NVOCC because of FMC Licensing. At that time, Freight Forwarder will be an agent or partner of NVOCC.
NVOCC owns or can lease containers for its operations whereas Freight Forwarder does not.
NVOCC is considered like a “Virtual Carrier” because they do not own the ships but have the same responsibilities as a shipping line.
In fact, in Vietnam, the concept of NVOCC is quite rare, most of the service providers in this shipping field are Freight Forwarders and in fact they can also issue to customers a secondary bill of lading (House B). /L).
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However, to provide sea freight to North America (North America Trade), the Freight Forwarder must become NVOCC according to FMC regulations. From there, NVOCCs will be able to establish a service contract (Service Contact) with shipping lines (Shipping Lines) for direct customers or for Freight Forwarders when customers of the companies This is required. At that time, Freight Forwarder will become an agent or partner of NVOCC companies. Therefore, customers should choose transport service providers that are NVOCC, rather than a Freight Forwarder, not only in terms of cost but also because NVOCCs have a higher responsibility and reputation than businesses.
Commitment when using Eagles GlobalForwarding shipping service
Providing customers with services of sending export and import goods by sea from Vietnam to the US (full container FCL and LCL retail).
The quality of outbound shipping services is guaranteed by direct routes through a long-standing and reputable agent network.
Competitive price and fastest delivery time, always associated with liability insurance.
Provide shipping services imported from all over the world to Vietnam.
Full Container Shipping (FCL/FCL) services at competitive prices.
Door to door delivery service.
Other value-added services (ADD- OTHERS SERVICES).
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Through this article, customers will definitely see the difference between FREIGHT FORWARDER and NVOCC. If customers have a need to use freight services, please contact us for advice and quotes.