Certified in Logistics, Transportation and Distribution (CLTD) Practice Test 2026 – Your All-in-One Resource to Complete Exam Success!

Question: 1 / 605

What distinguishes a Vessel Operating Common Carrier (VOCC) from a Non-Vessel Operating Common Carrier (NVOCC)?

VOCC does not transport cargo between countries.

NVOCC operates its own vessels.

VOCC is an asset-based common carrier.

The distinction that makes a Vessel Operating Common Carrier (VOCC) an asset-based common carrier centers around its ownership and operation of the vessels used for transportation. A VOCC owns or operates ocean vessels and is directly involved in the shipping process, offering services to transport goods from one destination to another via these ships. This means that a VOCC has a significant asset base tied up in its fleet, which includes responsibility for vessel operations, maintenance, and compliance with maritime regulations.

In contrast, a Non-Vessel Operating Common Carrier (NVOCC) does not own the vessels it uses to transport cargo. Instead, it acts as an intermediary or freight forwarder, handling logistics and bookings while contracting with VOCCs or other carriers to provide the actual shipping service. Therefore, while both VOCCs and NVOCCs are considered common carriers, the asset-based nature of a VOCC is a key differentiator that underlines its operational focus and responsibilities within the logistics and shipping industry.

Other options, such as references to NVOCCs’ capabilities related to Bills of Lading or vessel operation, do not effectively communicate the core distinction as clearly as the asset-based nature described in the correct choice.

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NVOCC cannot issue its own Bills of Lading.

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