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Q&A of Shanghai Shipping Company Registration

Answer
The State Council has made a decision on cancelling and delegating a batch of administrative licenses on March 6, 2019, about cancelling the examination and approval of international container ship and general cargo ship transportation business, and the examination and approval of NVOCC, which has been changed to record. And the cancellation of the deposit means that all the deposit will be refunded within a certain period. So far, NVOCC business attracted the attention of many shipping companies, so let us check more knowledge about it.

Q:
What is NVOCC?
A:
NVOCC also refers to non-vessel operating common carrier. It usually refers to a person who does not own a ship, but provides maritime transport services for others, and completes the transport of goods by sea through a ship carrier. According to China's maritime transport regulations, NVOCC is called "NVOCC business operator", which means to accept the entrustment of the shipper (usually the owner) as a carrier, issue its own bill of lading or other transport documents to the shipper, collect the freight from the shipper, and complete the transport of goods by sea through the international shipping operator (the actual carrier, i.e. the shipping company) , who is responsible for the carrier. It mainly includes freight forwarder, NVOCC and charterer. When these main bodies are carriers, ocean carriers, forward carriers, continuation carriers or ship owners are actual carriers.

Q:
What is International Freight Forwarding Agent?
A:
International freight forwarding agent refers to the economic activity that the international freight forwarding organization accepts the self-entrustment of the consignee and consignor of import and export goods, handles the international freight transport and related business for the consignor in the name of the consignor or itself, and collects the labor remuneration.

Q:
What are the differences between NVOCC and Freight Forwarding Agent?
A:
The similarities between them: both are transport intermediary organizations, which play the role of "organizer" and "middleman" in the whole transport process. Neither of them needs to purchase vehicles, and both are asset light operations. The main differences between them as follows:
1. Different legal status: NVOCC belongs to the category of "carrier"; Freight Forwarding Agent belongs to the category of "agent";
2. Different identities: NVOCC has the dual identities of carrier (for the owner of goods) and shipper (for the actual carrier), while Freight Forwarding Agent only accepts the entrustment of others to handle service affairs, and is the relationship between the consigned party and the consignor;
3. The nature of charges is different: NVOCC collects freight from the owner of cargo as a carrier and earns freight difference, while Freight Forwarding Agent generally only collects service intermediary fee.

Q:
What are the advantages of NVOCC compared with general freight forwarding business?
A:
For transportation enterprises, the identity of the carrier is more able to control the goods and take the initiative in the logistics; for shippers, compared with the mode of booking the space directly to the liner company and Issuing the shipped B / L by the liner company, cooperation with the NVOCC can make the shippers get the B / L faster, negotiate under the L / C, and settle the payment faster.

Q:
What are the requirements of NVOCC filing?
A:
The following requirements need to be met:

  • Subject. Logistics or freight forwarding companies should be the main body of the application;
  • Office space. The actual business address shall be consistent with the registered address;
  • The business scope of the business license shall include the business of "NVOCC".

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