Secure Great Rates, Reliability with a Licensed NVOCC Freight Forwarder

An NVOCC is an ocean carrier that transports goods under its own House Bill of Lading, or equivalent documentation, without operating ocean transportation vessels.

Instead of operating its own ship or fleet, an NVOCC leases space to sell from other ocean carriers, or Vessel Operating Common Carriers. One way to think of an NVOCC is a shipper to carriers and a carrier to shippers.

In some cases, a licensed NVOCC, such as AIT, may also operate as a freight forwarder.

Read on to learn more about AIT’s licensed NVOCC status and NVOCCs in general. Visit fmc.gov for more information.

As a licensed NVOCC ocean freight forwarder, AIT has established relationships and direct carrier agreements with member partnership associations, co-loaders and global carriers. As such, AIT is able to secure discounted rates and equipped to handle all aspects of ocean freight shipping in most countries around the world.

Yes. Although the terms are often used interchangeably, there are a number of differences between the two designations. As a licensed NVOCC, AIT delivers the benefits of both designations, such as the ability to offer a single point of service without having to utilize another NVOCC’s assistance when issuing documentation.

 

	AIT Worldwide Logistics	Freight Forwarding Only	NVOCC
Single Point of Service Capability	Yes	No	No
International Association Membership	International Federation of Freight Forwarders Association Membership (FIATA)	International Federation of Freight Forwarders Association Membership (FIATA)	Do not have an international association
Standard Documentation Format	Documentation follows FIATA standards	Documentation follows FIATA standards	No standard format
Relationship to Shippers	Agent	Agent	Carrier
Cargo Container Ownership	Manage or hold containers	Does not own or operate containers	Manage or hold containers
Warehouse Ownership	Owns and operates warehouses around the world	Typically, owns and operates warehouses used for cargo	Typically, does not own and operate warehouses
Global Cooperation	Coordinates with our global network to reduce costs and improve delivery time	Coordinates with freight forwarders around the world to reduce costs and improve delivery time	Works independently and under their own responsibility

For a deep-dive into the subject, visit the Federal Maritime Commission (FMC) resources at fmc.gov.

The Master Bill of Lading is a contract issued by the ocean carrier that is between the NVOCC and their agent (at origin or destination), while the HBL is the contract of carriage issued by the NVOCC between the actual shipper and actual consignee.

International regulations vary; however, prior to offering services in the United States, NVOCCs are required to:

• obtain a license from the FMC (46 CFR § 515.3) (if a U.S.-based company)
• submit proof of financial responsibility for payment of claims (46 CFR Part 515 Subpart C) (arising from its transportation-related activities)
• publish a tariff (46 CFR § 520.3)