NVOCC Vs Freight Forwarder?
What is the difference between NVOCC and Freight Forwarder?
Both NVOCC and freight forwarder considered to be a transporter intermediators. Normally a freight forwarder provides consultancy services and well experience in transportation, warehousing, ocean freight, Air Cargo and other logistics support to the client. However the NVOCC provides carrier (mostly Shipping Container services) with Own bill of lading.
Technically speaking NVOCC & Freight forwarders are similar to each other.However, there are many difference between the two parties.
A freight forwarder can offer services from one point to another point.Freight Forwarder use Air Cargo, Sea or Road transport. Most of the freight forwarder negotiate contract rates with shipping lines and air carriers. Freight Forwarder can also help to book the consignment with carriers, preparation shipping documents, Certificate of origin, Customs clearance and issuing own House bill of lading or Air waybill.
The NVOCC provides ocean freight services. NVOCC books large space with Common Carrier and resell the space to freight forwarders and shippers. NVOCC can issue own bill of lading as carrier. Most of the NVOCC’s are registered with Ministry of transport or FMC ( In USA) and file the tariff with respective department.
Comparison of Freight Forwarder VS NVOCC
Freight Forwarder NVOCC
Offer complete logistic Service Sea Cargo & Container Service
Affiliate FIATA/IATA or Logistic Network Participate in Network like FNC GROUP
Issue House bill of lading Issue carrier bill of lading
Acting on behalf of customer Acting on behalf of carrier
Affiliate with FIATA or Regional Registered with Shipping Depart
Freight Forwarding Association ( Similar to FMC in USA)
A Freight Forwarder or NVOCC, both of them are important player of logistic industry. Being NVOCC most of them do not offer traditional freight forwarding services. If you are a shipper and looking complete logistic service, freight forwarder will be the better choice. If you are looking only ocean freight service NVOCC will be the right choice.