Non-Vessel-Operating Common Carrier (NVOCC)

A Non-Vessel-Operating Common Carrier, mostly known as NVOCC, is a classification of OTIs that transport goods without owning any ships. Typically, NVOCCs transport small volumes of cargo that are grouped together in a single container. This process is known as unitization in the world of maritime trade. The services offered by NVOCC came into being as a result of the worldwide increase in the use of containers. Logistically, it is simpler to bear the implications of loading containerized cargo than to deal with the transport of fractional volumes. However, in the past, small importers and exporters, who only sell small lots, did not have this alternative since transporting small volumes did not pay for the use of container space. Thus, to meet this market need, NVOCCs emerged, which buy space on containers to ship the consolidated cargoes of their various customers. Among the advantages of contracting the transport services of an NVOCC are cost reduction, optimization of operations, and reduction of damage and cargo theft. It is worth noting that all common carriers that do not own ships are responsible for contracting the carrier’s sea freight, paying port fees, and issuing the bill of lading for each cargo handled, making them basically shipowners that do not have their own fleet.

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