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NVOCC vs Freight Forwarder

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Abady Law Firm
NVOCC vs Freight Forwarder

When it comes to shipping goods internationally, there are many different options to choose from, which can often leave shippers confused about which service provider to turn to. Two popular options are Non-Vessel Operating Common Carrier (NVOCC) and Freight Forwarder. While both are involved in the shipping process, there are some fundamental differences between the two. In this blog post, we will take a closer look at each option, highlight their differences, and help you decide which one would be best for your shipping needs. Let’s continue to read NVOCC vs freight forwarder.


What is an NVOCC?


An NVOCC can be described as a carrier that does not own or operate a vessel. Instead, they occupy a unique position between shippers and ocean carriers. NVOCCs are responsible for accepting and consolidating shipments from multiple shippers, before loading the cargo onto ocean carriers. NVOCCs issue their own bill of lading, which is an essential document that provides evidence of ownership of the goods being shipped. NVOCCs essentially act as a carrier for shippers, managing the transportation of goods from start to finish.


What is a Freight Forwarder?


A Freight Forwarder, on the other hand, is a company that arranges the movement of cargo, typically from one country to another. Freight Forwarders do not own any ships, planes, or trucks but instead work with various carriers to move the goods. Their responsibilities typically include arranging the shipping of goods, preparing necessary documentation, arranging insurance, and ensuring compliance with international trade regulations. Essentially, Freight Forwarders are intermediaries that help shippers navigate the complex world of international transportation.


Conclusion:


In conclusion, both NVOCCs and Freight Forwarders play essential roles in the international transport of goods. While they share some similarities, they also have some significant differences that are important to consider when deciding which option is best for your business. Ultimately, the choice between the two will depend on the nature and complexity of your shipment. By understanding these options, you can make a more informed decision and ensure that your goods are shipped on time, every time.


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