What is a NVOCC?

Recently, according to the 'Decision on Cancellation and Decentralization of a Group of Administrative Licensing Issues' issued by the State Council, the approval of the non-vessel shipping business was cancelled and replaced with the record. The cancellation of the deposit and insurance system has undoubtedly reduced the burden on NVOCCs. For those who often come into contact with import and export transportation, NVOCCs are quite familiar. But for the general public, it may not be familiar to NVOCCs. So let's talk about today, what is a NVOCC?

Dual status of NVOCC

NVOCCs are carriers in container transportation that handle the collection, packing, unpacking, and inland transportation of container freight, and operate transfer stations or inland stations, but do not operate ships. In Western countries, such carriers should be registered with the government's shipping department and carry out business activities under the supervision of the shipping department and the shipping association. However, their relationship with the shipping company belongs to the relationship between the cargo side and the ship side. It is actually an intermediate carrier with a dual identity. To the true shipper, he is the carrier, but to the ship, he is the shipper.

Limitation of Liability

Due to different economic and technical practices, whether at home or abroad, the scope of business of NVOCCs is quite different. Some NVOCCs also handle cargo declaration, cargo delivery, short-haul haulage, cargo transshipment and distribution. , Booking and various different modes of transportation agency business, and some only deal with one or more of them. But in general, the main business of NVOCCs is:

1. Sign the transportation contract with the shipper as the carrier, issue freight documents (bill of lading, waybill), and be responsible for the transportation from the place where the goods are accepted to the place where the goods are delivered.

2. As the general carrier, organize the whole transportation of goods, formulate the whole transportation plan, and organize the implementation of various activities.

3. According to the shipper's requirements and the specific conditions of the cargo, negotiate with the actual carrier for the means of transportation (booking).

4. Accept the goods from the shipper, organize or arrange the transportation to the export port, conclude a contract of transportation (in my own name), and deliver the goods to the maritime carrier who has booked the cabin. In the above transfer process, the agent handles customs declaration, inspection, and tallying procedures.

5. If necessary, handle cargo storage and outbound operations.

6. After receiving the goods from the ocean carrier at the port of destination, deliver the goods to the consignee.

For the owner, it is much simpler to deliver the goods to the NVOCC than to the traditional carrier, and the process of entrusting the freight forwarder can be omitted.

In short, the NVOCC has the dual status of carrier and shipper, which is essentially an intermediate carrier. The scope of activities of NVOCCs is very wide, and there are people engaged in industry reform at home and abroad.