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Difference Between NVOCC and Freight Forwarder

Main Difference

These two are the terms widely used in the shipping industry for many years. Many people who are even working in the shipping industry are not very clear about the difference between NVOCC and a Freight Forwarder. The major difference between NVOCC and Freight Forwarder is that NVOCC are an ocean carrier but they do not have their own ships or carriers whereas Freight Forwarder is the one that is both the carrier to deal your consignment and also the forwarder as well.


What is NVOCC?

The abbreviation NVOCC stands for Non Vessel Operating Common Carrier. A cargo forwarder, forwarder, or sending operators, otherwise called a non-vessel working normal transporter (NVOCC), is a man or organization that sorts out shipments for people or companies to get merchandise from the maker or maker to a business sector, client or last purpose of appropriation.NVOCC is also defined as ‘a shipment consolidator or cargo forwarder who does not possess any vessel, but rather works as a bearer by issuing its own bills of replenishing or air waybills and accepting obligation regarding the shipments’.A NVOCC signs contracts with transportation lines to ensure the shipment of certain number of units every year. In exchange of which, the transportation line offers positive rates to the NVOCC. In this way, NVOCC finishes to be the biggest exchange creator for the compartment shipment.

What is Freight Forwarder?

Freight Forwarder is defined as the firm having some expertise in masterminding stockpiling and dispatching of stock in the interest of its shippers. It more often than not gives a full scope of administrations including: following inland transportation, planning of delivery and send out records, warehousing, booking payload space, arranging cargo charges, cargo combination, load protection, and documenting of protection cases. Cargo forwarders normally send under their own bills of replenishing or air waybills (called house bill of filling or house air waybill) and their specialists or partners at the destination (abroad cargo forwarders) give record conveyance, deconsolidation, and cargo gathering administrations.A freight forwarder is a specialists who follows up for the benefit of shippers, exporters or different organizations to compose the sheltered, proficient and practical transportation of products.Freight forwarders use PC frameworks to mastermind the best method for transport, considering the sort of merchandise and the clients’ conveyance necessities. They utilize the administrations of delivery lines, carriers and street and rail cargo administrators.


Key Differences

  1. NVOCC has its own carriers to transport the cargo whereas freight forwarder does not have any container for this purpose.
  2. NVOCC holds all the responsibility of the cargo legally in case if some cargo is lost or damaged whereas freight forwarder holds no such responsibility.
  3. An NVOCC is not an agent or partner of any freight forwarder whereas freight forwarder is an agent or partner for an NVOCC.
  4. NVOCC issues the bill of lading whereas freight forwarder does not issue any bill of lading.

Comparison Video

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