Legal Definitions - NVOCC

Definition: NVOCC stands for non-vessel-operating common carrier. It refers to a freight forwarder that does not own the means of transportation, but contracts with a shipper to transport freight and with a carrier to perform the transportation. The NVOCC becomes the carrier in the contract with the original shipper and the shipper in the contract with the eventual carrier.

Example: ABC Freight Forwarding is an NVOCC that contracts with a manufacturer to transport their goods from China to the United States. ABC Freight Forwarding then contracts with a carrier, such as a shipping line, to perform the transportation. In this case, ABC Freight Forwarding is the carrier in the contract with the manufacturer and the shipper in the contract with the shipping line.

This example illustrates the definition of NVOCC by showing how a freight forwarder can act as a carrier in one contract and a shipper in another contract. The NVOCC is responsible for ensuring that the goods are transported safely and efficiently from the manufacturer to the destination.