A carrier refers to an individual or organisation that provides transportation services for a charge. A common carrier is a company that offers transportation services to the public and is legally obligated to transport goods or passengers upon payment of the approved fee. A non-vessel-operating common carrier is a freight forwarder that partners with a shipper to transport goods but does not possess the transportation equipment. A private carrier is a carrier that is not legally obligated to accept business from the general public.
An NVOCC, or non-vessel-operating common carrier, is a freight forwarder that does not own transportation means. Instead, it contracts with a shipper to transport freight and with a carrier to perform the transportation. In the contract with the original shipper, the NVOCC becomes the carrier, while in the contract with the eventual carrier, it becomes the shipper. For instance, ABC Freight Forwarding is an NVOCC that contracts with a manufacturer to transport goods from China to the United States. ABC Freight Forwarding then contracts with a carrier, such as a shipping line, to perform the transportation. In this case, ABC Freight Forwarding acts as the carrier in the contract with the manufacturer and the shipper in the contract with the shipping line. This example demonstrates how a freight forwarder can act as both a carrier and a shipper. The NVOCC is responsible for ensuring the safe and efficient transportation of goods from the manufacturer to the destination.
An NVOCC (Non-Vessel Operating Common Carrier) is a company that arranges for the transportation of goods by sea, but does not own or operate the vessels used for transportation.
An NVOCC provides a range of services, including booking cargo space on ships, consolidating cargo from multiple shippers, arranging for inland transportation, and handling documentation and customs clearance.
Yes, an NVOCC is a type of freight forwarder that specializes in ocean freight transportation.
Yes, an NVOCC must be licensed by the Federal Maritime Commission (FMC) in the United States.
To obtain an NVOCC license, a company must demonstrate financial responsibility, provide evidence of a bond or insurance, and comply with various regulatory requirements.
A bill of lading is a legal document that serves as a receipt for goods shipped by sea, as well as a contract between the shipper and the carrier.
The bill of lading is typically issued by the carrier, but in the case of an NVOCC, it may be issued by the NVOCC acting as a carrier.
A tariff is a document that outlines the rates and charges for transportation services provided by a carrier or NVOCC.
Yes, an NVOCC can be held liable for loss or damage to cargo, but the extent of liability may be limited by the terms of the bill of lading or other contractual agreements.
When choosing an NVOCC, it is important to consider factors such as experience, reputation, financial stability, and compliance with regulatory requirements. It is also important to review the terms and conditions of any contracts or agreements carefully.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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