THE TYPES OF CONTAINERS AND NVOCC

OPERATOR

Course: PGDLM (Semester 2)

Submitted to: Prof. Jatin M.

Submitted by: Roll No. 34

Date:

The 20-Foot Tank Container:

Flow chart for NVOCC:

A freight forwarder, forwarder, or forwarding agent, also

known as a non-vessel operating common carrier
(NVOCC), is a person or company that organizes
shipments for individuals or corporations to get goods
from the manufacturer or producer to a market,
customer or final point of distribution.
NVOCC is a person or company who consolidates
different consignments for different importers in to one
consignment who delivers each cargo each consignee
as per the agreed terms and conditions.
How does a NVOCC work in shipping?

The functions of a NVOCC with an example:

STEP 1: Exporter situated in Mumbai, INDIA has a
shipment to be exported to overseas buyer in DUBAI by
sea say about 4cbm of 1200kgs. As per costing
shipping in a full container load is not worth as the total
quantity and volume is too less to load in to a
container. This is called LCL shipment, means Less
Container Cargo shipment. Here, Exporter contacts a
NVOCC or consolidator to accept shipments to move to
final destination at DUBAI. The NVOCC accepts cargo.
STEP 2: Once after receiving cargo from shipper after
necessary customs formalities, the freight forwarder
releases House Bill of Lading HBL to the shipper. House
Bill of Lading also is a negotiable document and
accepted similar to any Bill of Lading. Normally HBL
House Bill of Lading is issued as per the terms and
conditions of Multi model Transport Document Act.
The shipper in House Bill of Lading is the exporter or
shipper who delivers goods to NVOCC / freight
forwarder and the importer or consignee, the party to
whom the cargo has to be delivered by the said
NVOCC / freight forwarder.
STEP 3: The NVOCC / freight forwarder after receiving
goods from shipper, re-book the same cargo to main
carriers who are vessel owners. The main carriers, once
cargo received, issues Bill of Lading to whom the cargo
booked with him. This is called MBL Master Bill of
Lading. In a master bill of lading, the shipper will be the
NVOCC / freight forwarder who delivers the cargo to
main carrier and the consignee, the overseas
counterpart party of the NVOCC / freight forwarder who
receives the goods from final shipper.
STEP 4: The said NVOCC accepts the LCL cargo from
other exporters also to make his container full. Other

exporters goods to other destinations also may have in

the container. So your cargo with other exporters cargo
is loaded in to a container and moves to the

transhipment port. The NVOCC (carrier of cargo) will

have their associates working in the said transhipment
port say Cochin, India.
There may have cargo arrived from other ports at
Cochin port to be moved to DUBAI also. They de-stuff
the cargo at Cochin port and, and arrange to load all
cargo to DUBAI in one container. Here, in Cochin
transhipment port, there may have other cargo arrived
from various locations to ship to other destinations also
say to China, Hong Kong, Cape Town etc. So all cargo
meant for Dubai which have been arrived from other
locations to Cochin loaded in to one container and
move to Dubai, The LCL goods arrived from various
locations meant for Hong Kong are loaded in to one
container and arrange to move to Hong Kong, The
cargo to be shipped out to Cape Town is loaded to one
container. All the said procedures are with the
necessary permissions and under the supervision of
customs officials of respective country. This process of
clubbing shipments together is called consolidation of
cargo.
STEP 5: Once after arrival of cargo at final
destination, the associate office (or own office) of
NVOCC who accepted Exporters cargo at first port of
loading delivers cargo to final consignee after
completion of necessary formalities as usual.

A, a NVOCC / freight forwarder acts as a carrier legally

accepts cargo from an exporter X agreeing to deliver
cargo to Y at DUBAI. A issues bill of lading to X on
receipt of goods after necessary export customs

formalities. A after receiving goods from X transfers

goods to C who is a main carrier of goods. While
transferring goods to C, A obtains a bill of lading from
main carrier C agreeing to deliver cargo at DUBAI. Here,
the bill of lading issued by A to X is called house bill of
lading and the bill of lading issued by C to A is called
Master Bill of Lading.