What is the difference between Freight Forwarder and NVOCC?

What is the difference between Freight Forwarder and NVOCC?

There are many different parties involved in freight logistics, including Freight Forwarders and NVOCC, and we find that there are many exporters who can manage their affairs happily and simply without knowing the difference between freight forwarders and common carriers, However, there are some important differences between the two, and in this article, we will discuss those differences.

Definition of Nvocc as Common Carrier:

A common carrier that does not operate on ships performs all the functions of ocean transportation, as it is a company that organizes shipments for individuals or companies to get goods from the manufacturer or producer to the market, customer, or final point of distribution, but does not operate the ships, because instead from that, Nvocc buys space on those ships from carriers, and then sells those spaces to various shipping companies.

Functions of the Nvocc Joint Conveyor:

  • Signing contracts with shipping lines to ensure that a certain number of containers are shipped each year, in return selling space inside those containers to shippers in smaller quantities.
  • Consolidates small shipments and puts them into common containers
  • Conclusion of contracts for the international transport of goods with shippers in their capacity as carriers.
  • Receive the shipment and deliver the shipment as freight forwarders.
  • Issuance of bills of lading and other transport documents.
  • Collection of fees for shipping and other services.
  • Reserve space and arrange shipment with major carriers.
  • Pay port-to-port freight charges or other transportation charges.
  • Preparing and packing containers, standardizing and dismantling containers.

Definition of Freight Forwarder:

 The freight agent works on behalf of importers, exporters or other companies to organize transportation procedures in a sound and appropriate manner in terms of costs and arranges transportation using computer systems, considering the types of goods and customer delivery requirements, as well as using shipping lines and airlines as well as various land transportation means.

 Freight Forwarder Job Duties:

  • Inquiry and planning the most appropriate means of shipment considering the types of goods and the available budget.
  • Arrange appropriate packing considering climate, terrain, weight, cost, nature of goods, delivery, and storage.
  • Negotiate contracts and determine transportation costs.
  • Obtaining, examining, and preparing documents to meet customs and insurance requirements.
  • Reviewing packaging specifications and the application of financial regulations and regulations in other countries.
  • Providing consolidation services through air and sea transport services and ensuring safe solutions for goods.
  • Arranging insurance and assisting the client in case of a claim.
  • Providing customized solutions for information and communication technology and electronic data exchange (EDI).
  • Arranging payment procedures for various fees and collecting payments on behalf of clients.
  • Use of e-commerce, internet technology, and satellite systems to enable tracking of goods.
  • Arranging air transportation for urgent and high-value shipments, managing risks, and supervising deliveries.
  • Act as an intermediary in customs negotiations worldwide to guide freight efficiently through follow-up procedures.
  • Arranging express mail and other specialized services.

When and how do you choose between Freight Forwarder and NVOCC?

So how do you decide whether you should work with NVOCC or a Freight Forwarder for your international shipment? Basically, it comes down to the level of service you need, if you know what you're doing and just need to book a full container on a ship, they can probably give you Work with NVOCC's desired target.

On the other hand, if you want to deal with a Freight Forwarder, he will be able to determine the best route for your goods, and the best way to transport them, whether by air, sea, or land, and will help you negotiate the best shipping price, and provide additional services and advice that are worth Usually the extra expense you pay for it.

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