As a general rule, what should shippers and forwarders assume about NVOCCs?

The assumption that shippers and forwarders should generally make about Non-Vessel Operating Common Carriers (NVOCCs) is that they use subcontractors for transportation. NVOCCs do not own or operate their own vessels; instead, they act as intermediaries between shippers and actual carrier vessels, meaning they consolidate shipments and handle documentation.

By utilizing subcontractors, NVOCCs can offer shipping services, such as booking cargo space on ships operated by other carriers, which allows them to provide flexible solutions to meet their clients’ needs. This approach enables NVOCCs to manage multiple shipments and routes effectively without the overhead costs associated with owning and operating a fleet.

The option regarding NVOCCs handling all transportation themselves does not hold true, as their entire business model is based on leveraging the services of actual shipping lines. While many NVOCCs may have international licenses, this alone does not take away from the fact that they primarily rely on subcontractors for the physical transportation of goods. Additionally, while contracts are crucial in the shipping industry for holding parties accountable and specifying terms, NVOCCs absolutely require legal contracts to outline their responsibilities and the terms of service provided.