Although ocean transport intermediaries form a small group of shipping professionals, there is a brisk demand for NVOCC bond and OFF bond capacity. Applying for the ocean freight forwarder (OFF) or non-vessel operating common carrier (NVOCC) licenses can be less than clear. The Federal Maritime Commission offers a helpful page on its portal for those applicants. The following is generally licensing information directly from the FMC. Per the FMC, these requirements do not necessarily apply to non-U.S.-based NVOCCs however those may apply for a FMC-issued license by election.

U.S.–BASED NVOCCS AND OFFs must do the following:
Appoint a qualifying individual who must have at least three (s) years of experience as an OTI, be able to provide evidence of that experience. Depending on the business structure, the qualifying individual must be an officer of the applicant business entity, the sole proprietor, or a partner in a partnership. Said experience must have been acquired in the United States.

  • Submit electronically or print out and complete Form FMC-18 (Application for a License as an Ocean Transportation Intermediary) with the appropriate fee. *Must create an account to access the application.

 

NON-U.S.–BASED NVOCCs THAT OPT TO BE LICENSED must do the following:

  • Appoint a qualifying individual who must have at least three (s) years of experience as an OTI, be able to provide evidence of that experience. Depending on the business structure, the qualifying individual must be an officer of the applicant business entity, the sole proprietor, or a partner in a partnership. Said experience may havee been acquired OUTSIDE of the United States.
  • Submit electronically or print out and complete Form FMC-18 (Application for a License as an Ocean Transportation Intermediary) with the appropriate fee. *Must create an account to access the application.
  • Establish a presence in the United States such as an unincorporated branch office.

 

SUBMIT PROOF OF FINANCIAL RESPONSIBILITY (NVOCC Bond or OFF Bond)

Pursuant to 46 CFR Part 515 Subpart C, each ocean transportation intermediary must provide evidence of acceptable financial assurance in support of its obligations. If the operator chooses to offer a surety bond, those OTI bonds must be issued by a surety company appearing on the U.S. Department of Treasury’s Circular 570 of insurers acceptable for federal obligations. Per § 515.21,

(a) Except as otherwise provided by law, no person may operate as an ocean transportation intermediary unless that person furnishes a bond, proof of insurance, or other surety in a form and amount determined by the Commission to insure financial responsibility. The bond, insurance or other surety covers the transportation-related activities of an ocean transportation intermediary only when acting as an ocean transportation intermediary.

(1) Any person operating in the United States as an ocean freight forwarder as defined in § 515.2(m)(1) shall furnish evidence of financial responsibility in the amount of $50,000.

(2) Any person operating in the United States as an NVOCC as defined in § 515.2(m)(2) shall furnish evidence of financial responsibility in the amount of $75,000.

(3) Any registered NVOCC, as defined in § 515.2(r), shall furnish evidence of financial responsibility in the amount of $150,000. Such registered NVOCC shall be strictly responsible for the acts and omissions of its employees and agents, wherever they are located.

An ocean freight forwarder or NVOCC bond must be uniquely numbered and marked to indicate whether it is an NVOCC or ocean freight forwarder bond. The exact legal name, including trade name(s) must appear as principal, the bond amount and the effective date of the OTI bond. Both the OTI and the surety must execute the obligation and a current power of attorney attached authorizing the surety’s representative to sign the obligation. The contact information for the Director’s office is as follows:

Phone: 202-523-5818
Fax: 202-523-5830
E-mail: pvo@fmc.gov

Contact information SPECIFIC to the OTI bond requirements is as follows:

Phone: 202-523-5787
Fax: 202-566-001
E-mail: bcl@fmc.gov

Underwriting of OFF and NVOCC bonds is best accomplished by a surety specialist with knowledge of this type of obligation and the specific forms required by the Federal Maritime Commission. Surety One, Inc. specializes in freight obligations. A NVOCC bond application submission is reviewed and responded to “same day”. We are the MOST RESPONSIVE surety bond underwriter in North America. Call (800) 373-2804 or email us at Underwriting@SuretyOne.com about your OTI bond need.

FYI: Forwarders/freight operators may also need a customs bond or if engaged in land operations within the United States, a BMC-84 Freight Broker Bond.