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The FMC regulations define "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. [10] Licensing requirements. OTIs must be licensed by the FMC before they perform OTI services in the United States. [11]
An ocean transportation intermediary (OTI) is a company that is licensed by the Federal Maritime Commission (FMC) to operate in the United States as an ocean freight forwarder, non-vessel operating common carrier , or both. [1]
The Standard Carrier Alpha Code, a two-to-four letter identification, is used by the transportation industry to identify freight carriers in computer systems and shipping documents such as Bill of Lading, Freight Bill, Packing List, and Purchase Order.
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A key difference between an NVOCC (frequently referred to as just an NVO) and a Freight Forwarder is their license. You have to have an FF license and/or an NVOCC license. Many companies have both. If a company says they are an NVO they will have an OTI # & Bond. An NVOCC is considered a carrier, they will issue their own shipping documents.
A freight forwarder or forwarding agent is a person or a company who co-ordinates and organizes the movement of shipments on behalf of a shipper (party that arranges an item for shipment) by liaising with carriers (party that transports goods).
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