Who Moves Your Cargo? The Roles of Freight Forwarders, NVOCCs, and Shipping Lines
In shipping and logistics, there are different kinds of shipping companies. Let’s find out what they are.
In the world of shipping and logistics, several key players work together to move cargo across the globe. While they all operate in the same ecosystem, their roles are quite different. So, what exactly are Freight Forwarders, NVOCCs, and Shipping Lines? Let’s break it down.
Freight Forwarders
A Freight Forwarder is a logistics intermediary that helps shippers move goods from one place to another. They generally don’t have their own vessels or containers. Instead, they act as a third party who arranges transportation and handles the paperwork, customs clearance, and coordination between carriers.
NVOCC (Non-Vessel Operating Common Carrier)
An NVOCC, like Silkargo Logistics, is a company that acts as a carrier without owning any vessels. NVOCCs book space directly with shipping lines and issue their own Bill of Lading, called a House BL. To the shipper, the NVOCC acts as the carrier; to the shipping line, the NVOCC is the customer.
NVOCCs often own or lease containers, manage the logistics process, and take responsibility for cargo while it's in transit. They provide flexibility and customized services that can be more tailored than what large carriers offer directly.
Think of NVOCCs as specialized carriers who handle your cargo from port to port without operating ships themselves.
Shipping Lines
Shipping Lines, such as our parent company, Samudera Shipping Line, are the actual vessel operators. These are the companies that own and operate the container ships used to transport goods around the world.
Shipping lines provide the physical space on their vessels and issue the Master Bill of Lading. They work with NVOCCs and freight forwarders, as well as directly with shippers.
How Do They Work Together?
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A shipper (the business that needs to move cargo) may contact a freight forwarder to handle the entire shipping process.
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The freight forwarder might then book space through an NVOCC.
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The NVOCC, like Silkargo, secures space on a shipping line such as Samudera Shipping Line.
In some cases, the shipper may go directly to an NVOCC or a freight forwarder, depending on the size, type, and complexity of the shipment.
Depending on the business's size and how often you send your cargo, choosing the right shipper will help you cut costs and minimize how much effort you put out. Like freight forwarders would be more convenient for businesses that want convenience or don’t have internal logistics expertise because they will take care of everything for you. However, this option might be more expensive compared to using NVOCCs or shipping lines directly.
Conclusion
While they all play important roles in the global supply chain, Freight Forwarders, NVOCCs, and Shipping Lines offer different types of services. Understanding their differences helps businesses choose the right logistics partner based on their specific needs.
At Silkargo Logistics, we’re proud to be an experienced NVOCC offering reliable and flexible ocean freight solutions in partnership with established shipping lines like Samudera Shipping Line.
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