NVOCC Services

Tel: 470-268-8082
Email: info@phoenixcargo.net

Phoenix Cargo NVOCC Services

Veteran shippers understand the service portfolio difference between an Ocean Freight Forwarder (OFF) and a Non-Vessel Operating Common Carrier (NVOCC), but really it's quite easily interpreted as a "consolidator" and a "facilitator". The Shipping Act of 1984 as amended established regulations the Federal Maritime Commission (FMC) uses to issue NVOCC Licenses and set the ground rules for those engaged in shipping activities in the US foreign commerce zone play by. Generally speaking, an NVOCC is a common carrier - meaning we present/hold out ourselves as carriers that sell space inside of seafaring cargo ships to shippers and freight forwarders (shipper's agent) as if we are the actual carrier. How do we operate with carriers and shippers?

Service Contracts:

NVOCCs' execute what is known as a "service contract" with carriers where a volume of containers are negotiated for a certain period of time onboard their vessels. This volume/space is practically bought or assigned to NVOCCs' who then resell the same space based on a Rule Tariff to Shippers - in many cases, via an NSA (NVOCC Service Arrangement), and NRA (Negotiated Rate Arrangement).

Rate Tariff:

As an NVOCC (common carrier), the ground rules mandate us to have a Tariff (Rules Tariff). This instrument contains our credentials, scope of services, ways and means of operating and dealing with Shippers/the public and the likes.

Phoenix Cargo has Rules Tariff on file with the FMC and can accessed online by visiting Tariff for all interested parties.

NRA -vs- NSA

Which posture best serves your interest depends on many factors from volume to protecting sensitive trade information.

NSA (NVOCC Service Arrangement)

An NSA is defined by the FMC as

"a written contract, other than a bill of lading or receipt, between one or more NSA shippers and an individual NVOCC or two or more affiliated NVOCCs, in which the NSA shipper makes a commitment to provide a certain minimum quantity or portion of its cargo or freight revenue over a fixed time period, and the NVOCC commits to a certain rate or rate schedule and a defined service level. The NSA may also specify provisions in the event of nonperformance on the part of any party."

It works like a service contract where you (Shipper) sign a written commitment to handle a certain volume per year at a rate the parties (Shipper and NVOCC) agree upon. Unlike NRAs, these contracts can be amended but cannot be cancelled. Non-performance clauses such as liability for container quantity commitment by shipper can be incorporated into these binding and enforceable contracts. These contracts are filed with FMC and are unique/different between the parties even on the same ports and points within the US to the same foreign port and points.

NRA (Negotiated Rate Arrangement)

Unlike the NSA which has a fixed volume commitment, NRAs' generally don't - unless agreed upon by the parties. They cannot be amended once executed, however, NRAs' can be cancelled by mutual consent of the parties. It is more flexible but not uniquely customizable like NSAs. The FMC defines NRAs' as:

"written and binding arrangements between a shipper and an licensed NVOCC to provide specific transportation service for a stated cargo quantity, from origin to destination, on and after a stated date or within a defined time frame."

Many Shippers prefer NRAs even though it does not give them unique rates like NSAs', it does not lock in the firm commitment of volume, does not require filing with FMC, and therefore tend to protect sensitive business information.