The Non-Vessel-Operating-Common-Carrier (NVOCC) is an important part of ocean freight business nowadays. Without such an organizational setup/structure, no globally acting freight forwarder/logistics service provider will be able to operate successfully in the worldwide ocean freight market.
There are hundreds of forwarders and other logistics service providers registered with and licensed by the US Federal Maritime Commission (FMC), but only a few are clearly aware of the requirements and risks and have organized and control their documents and processes in such a way that they comply with the rules and regulations of the FMC and their liability risks are covered in case of claims. The FMC is strictly differentiating between an „Ocean Freight Forwarder“ and a “NVOCC”. Often a freight forwarder does not consider that as Ocean Freight Forwarder he is only allowed to charge the customer as per outlays according the vessel operation common carrier (VOCC), i.e. the freight forwarder may not add any profit on top (besides handling fees etc.). Please check further details as per enclosed content of the FMC website (Ocean Transport Intermediaries).
Damages, Claims und fines (potentially millions of US Dollars) imposed by FMC and other governmental bodies, prove that such issues have not been dealt with on a professional basis, often due to cost and time constraints. It may go unnoticed over years until such an “accident” may arise and endanger the running business of a company or even its core substance.
Therefore each and every freight forwarder should carefully read and check the following questions:
A comprehensive article has been published by the German newspaper DVZ dealing with those issues too.
We, the company WCL has proven our competences and very special knowledge for advising, assisting and managing a NVOCC organization for logistics service providers in respect of a professional NVOCC setup, registration and/or restructuring, creation of NVOCC cargo documents, contracts and operational procedures as well as advising and assisting the restructuring of internal work flows/ processes in medium size and large logistics service providers.
We are ready to check the current status of the NVOCC setup of your company, propose improvements of shortcomings and execute changes if so requested.
Particularly we are able to offer you a blue print of professional NVOCC documentation, which has been worked out together and confirmed by maritime lawyers in the USA, Europe and Asia and has been endorsed by a large global insurance broker as well.
Please contact us – we will be more than happy to assist you.