NVOCC

An NVOCC (Non-Vessel Operating Common Carrier) is an ocean freight intermediary that functions as a carrier to shippers and as a shipper to the actual vessel-operating carriers. The NVOCC buys container space from ocean carriers at volume-discounted rates, then resells that capacity to individual shippers under its own bill of lading. To the shipper, the NVOCC looks like the carrier – they issue the bill of lading, set the rates, and take responsibility for the ocean leg of the shipment.

NVOCCs are licensed by the Federal Maritime Commission in the United States and must file tariffs and maintain a bond. Their core service is freight consolidation: an NVOCC might fill a 40-foot container with shipments from five different shippers, each paying a less-than-container-load rate that's lower than what they'd get booking directly with the ocean carrier. The NVOCC profits on the spread between their volume rate from the carrier and the combined revenue from the individual shippers, plus any markup on ancillary services.

The distinction between an NVOCC and a freight forwarder can be subtle in practice, since many companies operate as both. The key legal difference is that an NVOCC issues its own bill of lading and assumes carrier liability for the ocean transit, while a forwarder acting purely as an agent arranges transportation under the ocean carrier's bill of lading. In practice, many freight forwarders also hold NVOCC licenses, allowing them to offer either service depending on the customer's needs and the trade lane economics.

For shippers, working with an NVOCC makes the most sense when you're shipping less-than-container-load volumes and want competitive rates without committing to full container quantities. If you're shipping full containers consistently, you may get better rates contracting directly with vessel-operating carriers.