NVOCC Key Terms

Understanding Non-Vessel Operating Common Carrier (NVOCC) services and acronyms

By Michelle Cramer

A Non-Vessel Operating Common Carrier, or NVOCC, is a company that purchases ocean cargo freight space and sub-sells it to smaller companies looking to ship less than an entire freight of goods. These companies serve as a sort of cargo consolidator, providing all of the services a typical freight carrier provides, without being the company that actually transports the products.

There are several terms within the NVOCC industry that may stump a company using the service for the first time.

Freight container

It is crucial to know what a freight container is if your company plans to use it for shipping overseas. There are more than five million freight containers in use across the globe and there are several standards and regulations in place for their use.
Try: The International Organization for Standardization explains freight container standards.

Container Freight Station (CFS)

The Container Freight Station (CFS) refers to the loading dock where containerized cargo is loaded and unloaded. At the CFS, inventory is taken of the shipment and work is performed to make sure all the shipping parties have complied with international shipping regulations.
Try: World Trade Distribution describes CFS services it provides. Fuerst Humphrey Ittleman, a law firm in Miami, briefly explains part of the CFS process.

Cross dock operations

Cross dock operations refers to a process that eliminates the middle man from maritime cargo shipments. Upon arrival and unloading at the destination port, companies transport the goods directly to the customer rather than to their warehouse for secondary distribution.
Try: An article on MultiChannel Merchant explains the rising trend in cross dock operations. Nippon Express, an NVOCC company, explains the cross dock operations service it provides.

Federal Maritime Commission (FMC)

The Federal Maritime Commission (FMC) is an independent agency that regulates maritime shipments in and out of the United States. It is responsible for developing and maintaining regulations, administering policies, monitoring ocean carrier activities and many other tasks.
Try: Learn more about the Federal Maritime Commission on its website.

NVOCC Service Agreement (NSA)

An NVOCC Service Agreement, or NSA, is an agreement between the NVOCC and its client for the provision of specified freight container space in exchange for an agreed-upon rate of sale.
Try: The Federal Maritime Commission explains NSAs in greater detail. Explore the Electronic Code of Federal Regulations on shipping provided by GPO Access for more information on NVOCCs and their service contracts.

Full Container Load (FCL) or Less Than Container Load (LCL)

FCL and LCL are common terms used in the NVOCC industry in reference to services an NVOCC provides. Full container load refers to using an entire freight container for your shipping needs. Less than container load refers to using only part of a freight container for smaller shipments.
Try: Visit Export911 for a comparison of FCL and LCL. Direct Container Line explains the FCL and LCL services it provides.