NVOCC Licensing – your assurance

Featured, News/Blogon June 29th, 2012No Comments

The shipping industry to and from the USA is highly regulated by the government, which requires all companies engaging in this business to obtain an OTI License (Ocean Transport Intermediary) in the form of either:

1)    VOCC (Vessel Operating Common Carrier) – these are the companies that actually own the vessels that carry the cargo and contract directly with NVOCC’s

2)    NVOCC (Non-Vessel Operating Common Carrier) – companies that contract aggressive pricing with the VOCC’s and    share space with other NVOCC’s to be able to arrange the shipment of cargo at an aggressive price. NVOCC’s must file tariff’s with the FMC and have the right to issue a bill of lading under their own name.

3)    OFF (Ocean Freight Forwarder) – assists a shipper in the arrangement of international transportation services, but it is not a carrier.  It has no tariffs and does not issue a bill of lading in its own name.

 

The requirements to obtain an NVOCC & OFF license are:

1)    Proof of more than 3 years of experience with international shipping

2)    a rigorous background check

3)    Post a $75,000 surety bond

All of this, and more, ensures the relocation and shipping population that they are dealing with true professionals and a company with a solid background.

 

At Pangaea Logistics, we have our clients interest at hand, therefore we have obtained an NVOCC license (to see a copy of our license, please click on the above image).

These licenses are public knowledge and any reputable company will be ready willing and able to provide you the details, without hesitation.

 

You can click here to see a list of licensed NVOCC’s.

 

 

**** be extremely careful of companies who:

1)    Do not have a license

2)    Claim to have a license, but do not appear on the list of licensed companies

3)    State to be an “acting agent” of a company that has a license – this requires the “acting agent” to disclose who they are acting on behalf of and chances are you should be dealing directly with the licensed company and not the “acting agent”

 

In all of these cases, if something does not go right, you as a consumer have little to no rights to recover a loss.

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