NVOCC (Non-Vessel Operating Common Carrier)
A freight intermediary that acts as a carrier to shippers (issuing House B/Ls) but books space wholesale from actual vessel operators.
In detail
An NVOCC buys container space in bulk from shipping lines and resells it to shippers at a margin, issuing its own House Bills of Lading. For the shipper, the NVOCC appears as the carrier; for the shipping line, the NVOCC is the shipper. This structure enables NVOCCs to offer competitive rates (volume buying power) and more flexible commercial terms than dealing directly with shipping lines. All major freight forwarders operate as NVOCCs. Advantages for importers: competitive LCL rates, flexibility in contract terms, single point of accountability for the cargo. Risk: if the NVOCC becomes insolvent, it may be difficult to retrieve cargo held under the NVOCC's Master B/L. Vetting: check FIATA membership, P&I insurance coverage, and financial stability. In practice, established NVOCCs with strong reputations represent minimal risk.
Examples
- →An NVOCC books a 40HC FCL on a Maersk vessel and offers 30 LCL slots to different importers, issuing each a House B/L
Related terms
Freight Forwarder
A company that arranges international cargo transportation on behalf of shippers — booking carriers, managing documentation, and coordinating the logistics chain.
Bill of Lading (B/L)
The primary ocean freight document serving as a receipt of shipment, contract of carriage, and document of title.
LCL (Less than Container Load)
Consolidated ocean shipping where multiple shippers share one container, each paying per CBM or freight ton of space used.
FCL (Full Container Load)
A shipment occupying an entire ocean container — 20DC, 40DC, or 40HC — booked and sealed by one shipper.