Non-vessel operating common carrier, or NVOCC, companies purchase freight room on ocean-going vessels and then resell it to other freight haulers. They are able to reduce the shippers' overall freight cost by consolidating the shipments of several shippers into a single container. This works in everyone’s favor: the shippers receive lower rates, the NVOCC companies make money as intermediaries and the shipping companies sell all of their space.
NVOCC shipping is a boon to small shippers. Many companies specialize in shipping in either the Pacific or Atlantic Oceans so it's important to know the final destination of your cargo. When using a NVOCC company, your cargo isn’t necessarily insured as normal so double-check your situation in advance. Keep the following factors in mind when using NVOCC services:
1. NVOCC freight forwarders working in east Asia can help you break into this difficult economy.
2. Many NVOCC logistics companies specialize in certain shipping areas, such as Europe or the Middle East.
3. Your insurance coverage may change when using NVOCC shippers.
Action Steps
The best contacts and resources to help you get it done
Find NVOCC freight forwarders in the Pacific for shipments to China, Japan and the Pacific Rim
It is notoriously difficult to establish stable trade with Pacific Rim countries. By choosing a NVOCC company that already has established relationships with Pacific transporters, you can assure you cargo arrives where and when it should.
I recommend: Nippon Express USA specializes in shipping goods to many locations in North America, the Pacific Islands and Asia.
Logistics Integrator Pte Ltd works closely with new companies trying to gain a foothold in Asia. They have a full range of intermodal partners in Asia, North America and South America.
Use NVOCC services in the Atlantic to ship to Europe, Africa or the Middle East
The port density in European, Mediterranean and Middle Eastern shipping zones can be overwhelming for a new shipper. Using established NVOCC companies will help you navigate the difficult shipping lanes in this congested area.
I recommend: North Atlantic Services has contacts across Northern Europe, the Mediterranean and Middle East. The
Atlantic Connection works as a NVOCC company and has a large number of connections in all forms of freight hauling.
Find NVOCC companies that will insure your goods if your standard insurance doesn't cover them
Shipping your cargo through middlemen will often change the insurance coverage. Always double-check your coverage and pick up NVOCC insurance if necessary.
I recommend: There are several companies that offer NVOCC insurance. Take a look at
Jagro for basic policies or the
International Mover’s Network for an online quote form.
Tips & Tactics
Helpful advice for making the most of this Guide
- Many NVOCC companies have partnerships with intermodal companies both in North America and around their common ports overseas. It is possible that a single company can provide door-to-door service for your cargo.
The official source of NVOCC is the NVOCC page at Business.com
Related Resources from Business.com
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