Global products trade depends on many types of companies. For smooth cargo flow and supply chain efficiency, freight forwarding services are needed. Here, we will uncover the similarities and differences between VOCC and NVOCC, the two crucial players in the shipping and logistics industry.
VOCC (Vessel Operating Common Carrier)
A Vessel Operating Common Carrier, VOOC for short, is a company that owns, leases, or operates vessels for transporting cargo. VOCCs are responsible for managing various aspects of the shipping process, from making schedules to handling cargo.
NVOCC (Non-Vessel Operating Common Carrier)
A Non-Vessel Operating Common Carrier (NVOCC) is a logistics company that does not have its own vessels. NVOOC provides shipping services by partnering with VOCCs. NVOCCs consolidate smaller shipments from various customers into larger, more cost-effective loads ready for transportation.
What are the similarities between VOCC and NVOCC?
- International transportation: VOCCs and NVOCCs operate on trade routes worldwide.
- Cargo handling: Both VOCCs and NVOCCs are responsible for keeping the cargo intact and shipping it on time.
- Freight forwarding services: Both VOCCs and NVOCCs provide freight forwarding services, meaning they organize cargo movement.
- Paperwork: VOCCs and NVOCCs take care of the necessary documentation for shipping, such as:
- customs clearance,
- bills of lading,
- other regulatory requirements.
What are the differences between VOCC and NVOCC?
- Load consolidation: VOCCs mainly handle larger shipments and operate vessels that ship full container loads. NVOCCs consolidate smaller shipments from various shippers (Less than Container loads, LCLs).
- Control: VOCCs have direct control over the vessels they operate. They make schedules, choose routes, etc. NVOCCs, on the other hand, rely on agreements with VOCCs and have less direct control over the shipping process.
- Vessel ownership: NVOCCs, in contrast to VOCCs, do not own any vessels but partner with VOCCs to provide shipping services.
Is VOCC or NVOCC better?
There is no better type between VOCCs and NVOCCs; they both operate under different terms. If you are looking for a reliable freight forwarder, search no further and request a free quote on ShipHub.co.