Many different carriers can be used to transport goods and materials. Each carrier has its strengths and weaknesses, and it is essential to choose the right one for the job. It is important to consider all the factors involved when selecting a carrier to ensure that the goods and materials are delivered on time and in good condition. One of the methods of international sea transportation is NVOCC (Non-Vessel Operating Common Carrier). In this article, we will go over the definition of an NVOCC, what services they provide, the difference between a freight forwarder and an NVOCC, and the benefits of working with these companies.
Table of Contents
What Is an NVOCC?
Let us begin with some fundamental definitions. A freight forwarder is a company that organizes shipments for individuals or businesses to get goods from the manufacturer or producer to a market, customer, or final point of distribution. A freight forwarder does not move the goods but acts as an expert in the logistics of moving goods from one place to another. Services provided by a freight forwarder can include:
- Booking cargo space on behalf of their clients
- Tracking shipments and providing updates
- Filling out customs documentation
- Arranging for insurance
- Coordinating with other service providers, such as trucking companies
NVOCCs are similar to freight forwarders in that they offer an all-in-one shipping solution and can provide door-to-door service. An NVOCC is a non-vessel-operating common carrier. They are identical to freight forwarders but don’t offer their own vessels to move the freight. Instead, they contract with other carriers to move their freight for them. These companies provide various services to their clients, including logistics management, cargo insurance, and customs clearance. Some of the functions of this kind of company include:
- Negotiating and contracting with ocean carriers for space on vessels
- Filing maritime documentation
- Handling cargo insurance
- Arranging for inland transportation
- Providing customer service
- Handling claims and disputes
These companies are beneficial because they can provide transportation services at a lower cost than if the shippuseduse a traditional carrier. They can also offer more flexibility in terms of routing and schedule. However, these carriers are not without their drawbacks. They may not have the same level of control over the vessels they use, which can lead to delays and other problems. Additionally, These companies are not regulated in the same way as traditional carriers, which can lead to some uncertainty.
Why Use an NVOCC?
There are many reasons why you should go through an NVOCC for your shipping needs. Here are some reasons you may be interested in:
- They can offer competitive pricing because they don’t own the vessels they use for shipping.
- They have the flexibility to choose the best shipping route for your goods.
- They can provide a higher level of customer service because they are not limited by the schedules of the vessels they use.
- They are subject to the same regulations as common carriers, so you can be sure your goods will be shipped safely and securely.
- They can offer various value-added services, such as warehousing and distribution, that can make shipping your goods easier and more convenient.
- They can provide you with access to a global network of shipping companies, making it easier to find the right shipping solution for your needs.
- They are typically small to medium-sized businesses, so you can be sure you’ll receive personalized service.
- They are typically family-owned businesses, so you can be sure they’ll treat you like family.
- They are typically local businesses, so you can be sure they’ll be invested in your community.
NVOCC companies play an essential role in the international shipping industry. They are responsible for the transportation of goods from one country to another. They provide a vital service to businesses and consumers alike. NVOCC companies offer a number of important functions. They act as intermediaries between shippers and carriers. They also provide various value-added services, such as door-to-door service, storage, and packaging. In addition, these companies offer competitive pricing and flexible payment options.
NVOCC companies play a vital role in the global economy. They provide an essential service that helps businesses and consumers alike. They offer a variety of value-added services that make the shipping process more efficient and convenient. NVOCC companies are an essential part of the international shipping industry.
Freight Forwarders vs NVOCCs
There is no one-size-fits-all answer to whether a freight forwarder or an NVOCC is the right choice for your shipping needs. The best way to determine which option is best for you is to evaluate your specific shipping requirements and then compare the services and costs of each type of company. Here are some key factors to consider when making your decision:
| Non-Vessel Operating Common Carriers | Freight Forwarders | |
| Shipping Volume | If you ship large volumes of freight, an NVOCC may be a better option since they typically have lower rates than freight forwarders. | If you ship smaller volumes of freight, a freight forwarder may be a better option. |
| Shipping Destinations | If you ship to multiple destinations, an NVOCC may be a better option since they typically have a larger network of carriers. | If you ship to only one or two destinations, a freight forwarder may be a better option since they can provide more personalized service. |
| Shipping Frequency | If you ship freight on a regular basis, an NVOCC may be a better option. | If you ship freight only occasionally, a freight forwarder may be a better option. |
| Shipping Timeframes | If you need your freight shipped quickly, an NVOCC may not be a good option since they typically have longer transit times than freight forwarders. | If you have more flexibility with your shipping timeframes, an NVOCC may be a better option. |
| Shipping Services | If you need additional services such as tracking or insurance, an NVOCC may not be a good option since they typically do not offer these services. | If you do not need these additional services, an NVOCC may be a better option. |
| Shipping Costs | The final deciding factor will likely be shipping costs. You will need to compare the rates of several freight forwarders and NVOCCs to determine which option is more cost-effective for your specific shipping needs. | — |
Conclusion
NVOCCs can be an excellent option for businesses that need to ship freight. There are many reasons to choose an NVOCC for your shipping needs. They are experts in the field and can provide you with a variety of shipping options. They also have a vast network of contacts and can get you the best rates. Consider your priority and choose your NVOCC company wisely for a hassle-free shipping experience.
If you’re looking for a freight forwarding company in UAE that can provide you with various shipping options, then DFreight is the place to be. We have a wide network of contacts and can get you the best rates, so you can focus on what’s important – your business. So what are you waiting for? Contact us today to get started.
FAQs
What is a Non-Vessel Operating Common Carrier (NVOCC)?
An NVOCC is a company that provides ocean transportation services but does not own or operate its own vessels.
What are the benefits of using an NVOCC?
Some benefits of using an NVOCC include lower rates, more shipping options, and improved customer service.
Is there any downside to using an NVOCC?
The main downside to using an NVOCC is that they may not have the same level of experience or infrastructure as a traditional ocean carrier.
