Freight glossaryInternational ShippingFreight Documentation
NVOCC
Definition
An NVOCC (non-vessel-operating common carrier) is an ocean carrier that issues its own bills of lading and acts as the carrier to its customers, but does not operate the ships.
What it means
The Shipping Act defines an NVOCC as a common carrier that "does not operate the vessels by which the ocean transportation is provided" and "is a shipper in its relationship with an ocean common carrier."[1] NVOCCs and ocean freight forwarders together are ocean transportation intermediaries, and U.S.-based ones must be licensed by the FMC.[2]
An NVOCC often consolidates several customers' cargo into one container, issuing a house bill of lading to each customer while the ship line issues one master bill to the NVOCC; see master vs. house bill of lading. NVOCCs are also among the parties whose demurrage and detention billing falls under the FMC's rules.[3]
Example
A small importer ships 6 cubic meters of cartons as LCL with an NVOCC. The NVOCC issues the importer a house bill of lading and books the consolidated container with an ocean carrier under its own master bill.
Related
Related terms
- Freight ForwarderA freight forwarder arranges the transportation of other people's shipments, often consolidating them; U.S....Glossary
- Bill of LadingA bill of lading (BOL) is the document a carrier issues for freight it receives: a receipt for the goods and...Glossary
- Marine Terminal OperatorA marine terminal operator (MTO) runs the wharves, container yards and other terminal facilities that ocean...Glossary
- DemurrageDemurrage is a charge for a loaded container that stays at the marine terminal after its free time runs out.Glossary
Related questions
- Master vs. House Bill of Lading: What Is the Difference?When an NVOCC or forwarder consolidates several shipments, the ocean carrier issues one master bill of lading...Answer
- FCL vs. LCL: Which Should You Choose?Choose FCL (full container load) when you have enough cargo to justify a whole container, want it sealed from...Answer
- Freight Broker vs. Freight Forwarder: What Is the Difference?A freight broker arranges truck transportation between shippers and motor carriers for a fee and must be...Answer
Sources
- Legal Information Institute, Cornell Law School, “46 U.S. Code § 40102, Definitions (Shipping Act),” Federal statute. Accessed September 30, 2026.
- Federal Maritime Commission, “Apply for a License or Request a Foreign Registration,” Government guidance. Accessed September 30, 2026.
- Legal Information Institute, Cornell Law School, “46 CFR § 541.3, Definitions (demurrage and detention),” Federal regulation. Accessed September 2026.
General operational information, not legal, customs or regulatory advice. Rules and rates change; confirm current requirements with the agency, carrier or contract that governs your shipment.