GLOSSARY
NVOCC (Non-Vessel Operating Common Carrier)
A carrier that issues its own bills of lading and assumes carrier liability without operating its own vessels. Buys space on ocean carriers wholesale, resells to shippers retail.
A Non-Vessel Operating Common Carrier (NVOCC) sits between the shipper and the actual ocean carrier. It buys vessel space wholesale, consolidates LCL cargo, issues its own house bill of lading, and assumes carrier liability — the underlying vessel operator's master B/L names the NVOCC as shipper.
Why it matters
For SME exporters, NVOCCs offer LCL service and rate flexibility that direct ocean-carrier contracts don't. The trade-off is two layers of B/L (master + house) and a cap on what you can reclaim on a cargo loss — claims process via the NVOCC, who in turn claims against the actual carrier. Federal Maritime Commission licensing in the US imposes additional disclosure and bonding obligations.
Related terms
- Bill of Lading
- Master B/L vs House B/L
- Freight Forwarder
- LCL / FCL