What is NVOCC? Why should businesses use NVOCC?

x Is your business involved in the shipping process and want to learn about NVOCC?
x Are you wondering what role NVOCC plays and why should businesses use NVOCC?
x Do you need to combine/consolidate individual goods for Chinh Ngach sea transport?

PROSHIP.VN will collect information and knowledge of Logistics and import-export operations so that customers can understand what the term NVOCC is, real-life examples of NVOCC, reasons why businesses should use NVOCC, from here on. You can also easily distinguish the difference between NVOCC and Freight Forwarder. Along with that, we also point out the service advantages and transportation capacity of our unit for cheap LCL cargo shipping services to Chinh Ngach countries by sea container, interested customers should consider come to see the difference compared to other transportation companies and forwarder units on the market today.

Shipping contact hotline: 

Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247

What is NVOCC?

What is NVOCC? NVOCC is the abbreviation for the English phrase "Non - Vessel Operating Common Carrier" . NVOCC is understood as a company doing business in the field of marine transportation. These companies often focus on doing business in the field of ocean freight. Therefore, they are often considered ocean carriers, but they are different from shipping lines and do not own a ship.

However, these companies can still issue secondary Bills of Lading (House B/L) and price lists (Tariff Rates) to customers and directly sign service contracts (Service Contact) with shipping lines. If you want to become an NVOCC Company, you first need to be a Freight Forwarder. Through the concept of Freight Forwarder and NVOCC, it can be seen that FWD units often have a broad business field with many different service areas and transportation methods. Meanwhile, NVOCC only does sea freight business. In other words, FWD does many businesses in logistics, while NVOCC usually only specializes in shipping business.

What is NVOCC? Why should businesses use NVOCC?
NVOCC stands for "Non-Vessel Operating Common Carrier", which is a shipping business company like an ocean carrier but unlike shipping lines, it does not own any ships.

* For example, Expeditors International, who is ranked No. 1 by Descartes Datamyne in the Top 50 NVOCC operators (Asia/USA) shipped about 423,000 TEUs for 2022,…They will have very favorable prices on all including the carriers they use, based on their volume support. A shipper or forwarder who may be shipping 10,000 or 20,000 TEUs per year (as large as the current situation is) may not be able to secure similar rates from carriers.

An NVOCC Company may and sometimes may own and operate their own containers or lease them and depending on the different types of contracts, an NVOCC Company is suitable for the status of a “Supplier”. ” virtual and in certain cases accept all the liabilities of a service provider.

Where this is reasonable, NVOCC will have their own agent at the unloading and loading port to handle cargo and container release requests for customers. For a carrier, having a customer like NVOCC can also be beneficial due to the volume they can support, which then becomes a background commodity for the carrier.

Why should businesses use NVOCC?

When transporting goods by container, one must consider many factors such as bringing the goods to the container yard or Container Freight Station (CFS), properly packaging the goods, and ensuring the safety of the goods in transit. throughout the journey, properly unloading the goods at the destination, and finally, clearing the goods through customs and other inspection procedures. Therefore, to carry out these procedures smoothly and avoid unnecessary risks, certain businesses use NVOCC as their intermediary. This is necessary if you are not proficient in the profession, then using an intermediary will help you reduce risks, costs and time.

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What are the reasons why businesses should use NVOCC?

  • Easy Documentation:

NVOCCs issue their own Bill of Lading. When it is issued by the NVOCC it is called the House Bill of Lading or HBL. This makes the documentation process much easier for customers.

  • Network Efficiently with Local Authorities:

NVOCCs often maintain a good network of relationships with local trucking associations, trade unions, port Customs, etc. Such a diverse and effective network will help complete the job smoothly. and with minimal disruption. Therefore, a well-connected and well-established NVOCC in the industry can help mitigate the risks associated with trucking, labor union issues – especially at ports and other Other situations are considered normal collateral by large shippers and forwarding companies.

  • Personal service:

A key advantage when you deal with NVOCC is that they provide a seamless and personalized service to their customers, unlike a large Shipping Company that often deals with a very large number of customers. All logistics functions can be assigned to NVOCC who can provide these services for you. It can also ensure that you get the best shipping rates whenever possible.

NVOCC can offer several sailing options because they work with different ocean carriers. Tracking your goods is vital when meeting deadlines and business commitments. Most NVOCCs offer online Track and Trace facilities that help businesses find where their goods are during transit. Information about patterns and trends in lead time (time taken from origin to destination) is valuable to businesses for planning and forecasting.

  • Transport goods easily and at more favorable prices:

NVOCC has a lot of experience so it will help you easily work with direct transport service providers, usually shipping lines, especially in case you are a small-scale business. The advantage of NVOCCs is that they can negotiate to achieve better prices from large shipping agents or forwarding companies. These lengthy work processes are often cut short in NVOCCs to facilitate business operations.

NVOCC is often in a better position to offer you lower rates than a mainline carrier. NVOCCs negotiate and receive better prices from shipping lines so they can do business in large quantities. They can pass on some of these savings in the form of better rates to customers. Small business owners themselves will not be able to receive these reduced rates if they contact a shipping line directly.

NVOCCs in Vietnam today

Now that you understand what NVOCC is, you also need to know about NVOCC Units in Vietnam. There are currently not as many NVOCCs in Vietnam as Freight Forwarders, so PROSHIP will compile the Top 5 most reputable NVOCCs in Vietnam for your reference:

1. Mison Trans – Mien Son transport company

MISON TRANS nearly 10 years in the field of Logistics Services:

  • Declaring, consulting, doing customs procedures;
  • Transporting domestic and international goods by road, sea and air;
  • Ship goods from Taiwan, China to Vietnam,..;
  • JCtrans Logistics Network – JCTrans global logistics network with +1,000 GCP members in +200 countries;
  • FIATA – International Freight Forwarding Association with about 40,000 logistics companies;
  • VLA – Vietnam Logistics Service Business Association.

2. PALM LOGISTICS CO., LTD

  • Hundreds of partners around the world are satisfied when using PALM LOGISTICS − Perfect logistics service chain;
  • Safe multi-modal international/domestic transportation: Air, sea, road for all goods: LCL goods, bulk goods, whole shipments, consumer goods, oversized goods, etc.;
  • Smooth import and export activities with customs, customs clearance, and import and export trust services;
  • Warehouse rental, packaging and unpacking of goods effectively and reliably.
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3. Danko Logistics - Branch of Danko Logistics Company Limited

  • More than 20 years of experience in the clothing industry for many customer partners: Komatsu, Inoue Rubber, Sato Vietnam, Ogino Vietnam, Santomas Vietnam,..;
  • Branches located in Ho Chi Minh and Hai Phong seaports have an agent system in more than 130 countries;
  • Having extensive relationships with customs departments, port authorities and thousands of export and import shipments cleared through customs each year;
  • Fast procedure, on-time delivery.

4. Branch of Vietnam Shipping Agency Joint Stock Company - Da Nang Shipping Agency (VOSA DANANG)

A member of major associations such as FIATA, IATA, BIMCO, VCCI, VISABA, VLA. Owning a team of more than 700 officers and employees skilled in the field of Logistics. As a leading unit in Vietnam in the fields of:

  • International freight forwarding by sea, air and rail;
  • Domestic road transport and transit to Laos;
  • Shipping agency, ship supply, maritime services, warehousing;
  • Consulting on import and export, providing customs clearance services, providing FCR (FIATA Forwarders Certificate Of Receipt - Issuing FIATA Goods Receipt Certificate).

5. Vinalink Logistics – Vinalink Logistics Joint Stock Company

VINALINK Logistics − Creates a 25-year history of formation and development, with a nationwide airline/ship agency system:

  • Total warehouse area 14,000m2;
  • Container/light truck/forklift fleet of over 30 units;
  • Service quality meets international standards for domestic and import and export goods;
  • Specializing in: Air and sea freight forwarding, warehousing services, customs clearance, import and export, insurance, distribution, retailing of goods,...

Shipping contact hotline: 

Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247

Difference between NVOCC and Freight Forwarder

Once you know what NVOCC is, learning about the difference between FREIGHT FORWARDER and NVOCC is also very necessary for those who are involved in the import-export and sea transport process. Specifically, the difference between these two concepts is shown in:

  • Firstly: NVOCC only refers to sea transport services while Freight Forwarder has a broader concept, it provides services for many forms of transport by sea, road and air;
  • Second: NVOCC is considered like a virtual shipping company "Virtual Carrier" because they do not own the ships but have the same responsibilities as a shipping company;
  • Third: NVOCC owns or can rent containers for its operations while Freight Forwarder does not;
What is NVOCC? Why should businesses use NVOCC?
There is a clear difference between NVOCC and Freight Forwarder that businesses, shippers, etc. need to distinguish accurately to help the sea transportation process go smoothly and effectively.
  • Fourth: Freight Forwarder can make reservations with shipping lines (Shipping Line) to meet customer needs, but cannot make reservations to North America (North America Trade) but must go through NVOCC because there is FMC Licensing. At that time, Freight Forwarder will be an agent or partner of NVOCC;
  • Fifth: In reality in Vietnam, the concept of NVOCC is quite rare because almost all service providers in this transportation field are Freight Forwarders and in fact they can also issue secondary bills of lading to customers. (House B/L);
  • Sixth: However, to provide sea freight to North America (North America Trade), the Freight Forwarder must become an NVOCC according to FMC regulations. From there, NVOCCs will have the ability to establish service contracts (Service Contact) with shipping lines (Shipping Lines) for direct customers or for Freight Forwarders when the companies' customers are customers. This has a request. Then Freight Forwarder will become an agent or partner of NVOCC Companies => Customers should choose NVOCC transportation service providers instead of Freight Forwarders not only in terms of price but also because NVOCC has higher responsibility and reputation than businesses.
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>>See more: What is a goods delivery note?

Proship Joint Stock Company - The leading professional and reputable Freight Forwarder in Vietnam

Proship Joint Stock Company is a leading unit in Freight Forwarder Services. With many years of experience operating in the field of Logistics and serving international and domestic multi-modal transportation services, delivery and customs declaration services. Especially with Chinh Ngach Sea Freight Import-Export Service, we are promoting shipping routes from Vietnam - Japan, Korea, China, EU countries such as the US, Mexico, Canada, Germany, Australia. ,...Consolidate goods from many retail customers together, carry out necessary procedures for export and rent a CFS warehouse at Cat Lai Port to facilitate the goods rotation plan. Proship commits to complying with the correct LCL shipping process by sea:

  • Train booking (train booking);
  • Check and confirm booking;
  • Track the shipping process and updates from the exporter;
  • Check documents and records related to goods;
  • Register for certifications related to freight transportation;
  • Customs declaration and import of goods;
  • Open and clear customs declarations,...
What is NVOCC? Why should businesses use NVOCC?
Proship is a carrier providing flexible and economical multi-modal transportation solutions with the development of low-cost Chinh Ngach retail import-export services.

Services provided here include:

  • Providing freight from HCM Port, Da Nang,... to the US, Germany, Australia, Canada, Japan, China,... (CY-CY);
  • FCL/LCL shipping service;
  • Providing Door to Door, CY – Door, Door to CY, Ex-work, DDU, DD,... Services;
  • Providing road transport services;
  • Providing customs declaration services;
  • Providing Certificate of Origin Services;
  • Providing fumigation services;
  • Providing services of making plant quarantine papers,...

Shipping companies have been and will be strategic partners of Proship

APL, BENLINE, MA-CGM, CNC, COSCO, HIPPING, ECU LINE, EVERGREEN, EMADEPT, GRAND, HANJIN, HAPAG-LLOYD, HEUNG-A, HUBLIN, HYUNDA, NDOTRA, K-LINE, KMG, KMTC, AERSK LIN, MCC, MELL, MOL, MSC, AMSUNG, NORTH, FREIRHT, NYK, OOCL, ORIENTAL, ORIMAS, PIL, RCL, SINOKOR, INOTRANS, SITC, TS LINE, VOSA, VVMV, WANHAI, NG MIN, ZIM,... are the companies Prestigious ships with international reputation we have been and will try to connect to further improve our services now and in the future.

Chinh Ngach retail shipping fee (2 ways) from Vietnam to dependent countries

  • Pick-up address/Delivery port;
  • Delivery address/Port of import;
  • Product name, standard type, size, weight;
  • Quantity of goods;
  • If it is cold cargo, food cargo needs to provide the required cold temperature;
  • If it is dangerous goods, it is necessary to provide MSDS and UN number;
  • Estimated date of completion of goods;
  • Other requirements if any…

* In addition to sea freight quoted based on specific cargo routes, local charges are kept fixed according to the price list:

  • CFS warehouse fee: USD 8/CBM;
  • Sulfur surcharge (LSS or WBS): USD 7/CBM. Is a new surcharge, according to regulations in the Imo2020 treaty on maritime transport;
  • EBS/AMS/AFR fee: USD 35/trip;
  • Terminal Handling charges: USD 8/CBM;
  • Telex release fee: USD 30/set;
  • Bill fee/Docs fee: USD 40/set.

The customers Proship has been targeting

  • Corporations, domestic and foreign companies that need to transport goods;
  • Factories, projects, general agents and services for domestic goods, international import and export;
  • Small and medium-sized enterprises have a need for international sea transport and import-export for the fastest time and the smallest cost savings.

With the above answers, Proship hopes to have partly conveyed to your business the knowledge you need to know about what NVOCC is , the main role of NVOCC, and the clear difference between NVOCC and Freight Forwarder in transportation activities. What is the sea like? At the same time, we also want to share with you the outstanding benefits of cheap, safe and economical LCL cargo transportation service to Chinh Ngach countries so that interested individuals and business units can have may consider coming.

Currently, the shipping route we are exploiting is from Vietnam - USA, Germany, Australia, Japan,... in blocks, one container will have many transparent and clear customs declarations, quick and easy customs clearance. In addition, we also provide parcel transportation services, transporting goods by rail, road, etc. Contact Hotline for detailed advice and to meet shipping needs in the most optimal and suitable way. .

Shipping contact hotline: 

Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247

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