A Non-Vessel Operating Common Carrier (NVOCC) fulfills nearly all the same functions as a Vessel Operating Common Carrier (VOCC) when it comes to cargo transportation—with one key difference: NVOCCs do not own their own vessels. Instead, an NVOCC leases space on another carrier’s vessel, which it then sells to customers under its own House Bill of Lading (HBL).
NVOCCs can:
- Negotiate freight rates with carriers
- Provide documentation and tracking services
- Assist customers with claims and disputes
- Offer additional services such as packaging and cargo insurance (in some cases)
Some NVOCCs own their own fleets of shipping containers and other equipment, depending on the individual carrier’s capabilities and service offerings. Some may also operate as freight forwarders, though it is important to note that most NVOCCs do not own warehousing facilities.
Although sometimes viewed as simple intermediaries in the supply chain, NVOCCs can offer shippers several key advantages, such as:
- Access to a broader range of carriers, including smaller regional carriers, allowing for more schedule flexibility and routing options
- Enhanced tracking capabilities, offering better visibility into cargo movements. Since NVOCCs manage multiple containers across various vessels, they often employ more sophisticated tracking systems than other carriers
- Streamlined shipping processes, thanks to their established relationships with carriers and extensive experience in freight transportation