The term freight forwarder refers to an individual or a company which organises shipment of cargo for an individual or a company from one place to another. An important fact to be realised is that a freight forwarder merely acts as a supply chain management expert. This means that the freight forwarder would not actually carry the goods. A question may arise here. If a freight forwarder would not act as the carrier, why one should even bother with getting services from a freight forwarder? The answer to this question is that it is the freight forwarder’s responsibility to contract a carrier, both at the origin and destination ports and to take care of necessary paperwork and documentation which may be necessary for custom clearance which is often required when cargo is being shipped across countries.
Image Courtesy: freightforwarderssite.com
The term NVOCC, short form of Non Vessel Operating Common Carriers, refers to a transportation company (a carrier) which is actually responsible for carriage of cargo from one location to the other. This means that an NVOCC has all the necessary equipments such as cargo containers at its disposal. In almost all countries, it is mandatory for an NVOCC to file its tariff with government regulatory bodies. This practice is meant towards creating a public tariff.
Image Courtesy: africa-air-cargo.com