NVOCCs and freight forwarders perform similar operations — facilitating the logistics process by transporting goods from one point to another. However, there are a few key differences in their roles and scope of services:
- NVOCCs issue their own BoLs and take legal responsibility for the cargo, while freight forwarders typically arrange transportation without assuming liability.
- Freight forwarders offer transport services for land, air, and sea cargo, while most NVOCCs only offer services for maritime transport.
- NVOCCs must register and obtain licenses to operate, with the requirement to publish tariffs and adhere to common carrier obligations. Freight forwarders require licensing but are not required to publish tariffs.
- Freight forwarders may also provide more comprehensive logistics services, including warehousing and inventory management, while NVOCCs only cover documentation and transport.