An ocean carrier that moves cargo under its own House Bill of Lading or an equivalent document and does not operate the vessels by which ocean transportation is provided is called a Non-Vessel Operating Common Carrier (NVOCC).

Freight forwarders provide consultancy services and help the shipper with customs-related documentation, booking space with carriers, arranging for other transportation services, warehousing, etc. An NVOCC offers ocean carrier services and issues their bill of lading. Their services are related to ocean shipping and they act as the shipper to the carrier and the carrier to the shipper.

A freight forwarder may not be an NVOCC.An NVOCC can also be a freight forwarder.Freight forwarders usually don’t own or operate their containers.In several cases, an NVOCC owns and operates its containers.

A shipper or an importer/a customer 'appoints' a freight forwarder to 'act as their agent.' A shipper or an importer/ a customer 'employs the services' of an NVOCC as one of their 'service providers'. It is crucial to note that the NVOCC is not an agent in this case but instead provides services as a carrier or those of a shipping line.

FCL or Full Container Load is a standard set by the ISO (International Organisation for Standardisation) which refers to one 20 or 40ft container filled with cargo. A shipper uses up the space of the entire container.

LCL or Less than Container Load refers to a shipment that doesn't fill one 20 or 40ft standard container. In the case of LCL, several shippers load their cargo into a single container. While LCL is the cheaper option for small shipments, it costs more money per unit of freight as compared to FCL.

Majority of businesses across the globe rely on the ocean for moving their goods internationally. Ocean shipment is known to be a cheaper option as compared to air shipment. Here is a list of some of the factors that determine or influence the ocean freight rates:

- The ability of the shipper to negotiate rates with the freight forwarder/carrier

- Bunker fluctuations

- Seasons

- Service charges levied by the stakeholders involved

- Fluctuations in currency

- Costs involved in handling and clearing goods at the port of loading and port of destination.

- Whether a shipment requires a dedicated Full Container Loading (FCL) or it’s small enough to be consolidated with other cargo that is Less than Container Load (LCL)