Operating as an intermediary between shippers and ocean carriers can be a lucrative business. Companies providing shipping and logistics services to importers and exporters but do not operate their own ships are called Non-Vessel Operating Common Carriers (NVOCCs). While there is no exact number because there is no central database, it is estimated that there are a significant number of unlicensed NVOCCs operating in the U.S. Atlantic Pacific Tariffs Inc. (AP Tariffs) joins hands with the U.S. Federal Maritime Commission in encouraging NVOCCs to get licensed. Here are the top 5 reasons why it is better to become a licensed NVOCC: 1. An FMC license provides credibility and legitimacy to the business. This can be important when dealing with customers, partners, and other stakeholders who may require proof of compliance. 2. Licensed NVOCCs typically receive better rates from ocean carriers, which is crucial for success in this highly competitive industry. 3. Licensed NVOCCs have access to certain legal protections because they can issue their own bills of lading, which comes in handy in the event of disputes or claims. 4. The FMC has the authority to impose fines and penalties on unlicensed NVOCCs. Not knowing you violated a rule can get you fined as much as $14,149 per occurrence! 5. The FMC can issue cease and desist orders on unlicensed NVOCCs and this can disrupt business operations and damage the company's reputation. In summary, being a licensed NVOCC provides a range of advantages over being an unlicensed NVOCC, including credibility, flexibility in negotiating rates, legal protections, and enhanced reputation. AP Tariffs will help you get your license so you can have more opportunities for your business! Email us today at email@example.com or schedule a 15-minute meeting here!
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