Understanding an NVOCC's Role in Ocean Freight Rate Filings

If you’re a Non-Vessel Operating Common Carrier (NVOCC) involved in shipping cargo to or from the United States, you’re likely navigating the complex world of FMC regulations. Here’s what you, as an NVOCC, need to know to stay compliant—and avoid costly penalties!

What NVOCCs Must Do:

• Always file your selling rate, even if it’s the same as your buying rate.

• Selling to public or non-FMC agents? Publish the TLI rate in your tariff.

• Selling to cargo owners or FMC-licensed NVOCCs? Register the rate as an NRA.

Why It Matters:

Skipping this step could cost you $14,988 per shipment. That’s not a typo.

Who Can Resell?

Only FMC Authorized NVOCCs can legally buy and resell Ocean Freight Rates from and to USA Territories. Once the NVOCC Rate is filed or registered, and the House Bill of Lading (HBL) is issued, it can pass through multiple layers of HBL, but your responsibility is to ensure the shipment under your control is compliant.

As shipper or Consignee in the Master BL, you may end up being liable for the Shipment incidentals such as Detention and Demurrage caused by the real shipper or the real consignee of the shipment.

Be aware of the shipment value before accepting handling the shipments. Low value shipments tend to be abandoned by the owners when billed for large Detention and Demurrage Changes. In those cases, you may end up paying the Daily cumulative charges and fines of the low value abandoned shipments.

What Freight Forwarders Can’t Do:

FMC-Authorized Ocean Freight Forwarders (OFF) are Logistics and Export Documentation Agents that handle Ocean Export Shipments. They are NOT allowed to mark up the rate applied by the VOCC or NVOCC. They invoice for the services provided as listed in their Services Rate List.

The BL Chain Explained:

• Vessel Operator (VOCC) publishes or registers its selling rate and issues the MBL, showing the buying FMC NVOCC as Shipper or Consignee.

• Each FMC NVOCC publishes or registers its selling rate and issues its HBL, showing the customer as shipper or consignee.

• The final HBL shows the real shipper and consignee.

Each party in this chain must file or register their selling rate.

The FMC cannot enforce or regulate if in the chain of intermediaries involved in the shipment are non-FMC NVOCCs, but it does enforce rules on FMC-Licensed NVOCCs.

Bottom line: If you’re a licensed NVOCC, publish your TLI or register your NRA. It provides you with a shield against penalties.

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