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Simple English definitions for legal terms
NVOCC
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A quick definition of NVOCC:
A carrier is a person or company that transports people or goods for a fee. A common carrier is a company that offers transportation services to the public and is required by law to transport goods or passengers if the approved fee is paid. A non-vessel-operating common carrier is a freight forwarder that contracts with a shipper to transport goods but does not own the means of transportation. A private carrier is a carrier that is not required by law to accept business from the general public.
A more thorough explanation:
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.