According to FMC regulations, an NVO can be classified as which type of carrier?

Prepare for the Certified Export Specialist Test. Use flashcards and multiple-choice questions, each with hints and explanations. Get ready to excel!

An NVO (Non-Vessel Operating Common Carrier) can indeed be classified as either a common carrier or a contract carrier according to FMC (Federal Maritime Commission) regulations.

As a common carrier, an NVO has the responsibility to offer services to the public without discrimination, providing transportation services in exchange for compensation. This classification requires the NVO to adhere to specific regulations that ensure fair practices in the provision of shipping services, such as adhering to tariffs and maintaining liability for cargo.

On the other hand, an NVO can also operate as a contract carrier, which allows them to enter into specific agreements with shippers. In this capacity, the NVO negotiates terms and may provide tailored services that cater to the unique needs of certain clients, providing more flexibility in pricing and services.

This dual classification reflects the nature of NVOs in the shipping industry, where they can serve a wide range of clients and fulfill varying requirements depending on the arrangements made. Thus, understanding both roles helps in grasping how NVOs function within the regulatory framework of international shipping and logistics.

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