What is the difference between NVOCC and Freight Forwarder?

What is the difference between NVOCC and Freight Forwarder?

NVOCC vs. Freight Forwarder: Points of Distinction
  • You must be a freight forwarder to be an NVOCC, but not all freight forwarders are NVOCCs.
  • NVOCCs always arrange ocean transportation; freight forwarders may arrange ocean, air or inland transportation up to a specified point in the journey where the importer’s (or buyer’s) agent takes control of the movement of goods based on the Incoterms 2020 rule agreed upon by the seller and the buyer.
  • NVOCCs are permitted to add a profit percentage onto their rates. Freight forwarders are only allowed to add operational fees.
  • An NVOCC is an intermediary between the shipper and the vessel operator and issues their own bills of lading. A freight forwarder is an authorized agent acting on behalf of the shipper. For an additional fee, the freight forwarder will generate the required documents, file your electronic export information through the Automated Export System (AES) and provide other services.
  • While both ocean freight forwarders and NVOCCs must obtain an Ocean Transportation Intermediary (OTI) license from the Federal Maritime Commission (FMC), the requirements for obtaining one are different for freight forwarders and NVOCCs.