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NVOCC stands for Non-Vessel Owning Common Carrier. NVOCC operation comprises sales, stuffing, and transport of the containers to gateway ports. The bill of lading issue and overseas distribution is taken care of by the agents of NVOCC.
In ocean shipping, an NVOCC is a cargo consolidator who buys space from a carrier and sub–sells it to smaller shippers. The NVOCC performs all the functions of a carrier like - issuing bills of lading, publishing tariffs, except providing actual ocean or intermodal transportation. Forwarding agents are an example of non-vessel operating common carriers. An NVOCC can be described as a shipper to carriers and a carrier to shippers.
While NVOCCs do not usually own their own warehouses, many own their own fleet of containers. In certain circumstances, an NVOCC may also operate as a freight forwarder.
An NVOCC signs contracts with shipping lines to guarantee the shipment of a certain number of units each year. In return, the shipping line offers favorable rates to the NVOCC. Thus, NVOCC ends to be the largest trade maker for container shipment.