NVOCC & FMC Bonds

 

NVOCC BOND-

The Non-Vessel Operating Carrier Bond, also known as an NVOCC Bond, is required by all those engaged as Ocean Transportation Intermediaries (OTI's).

 

The NVOCC Bond guarantees compliance with the Ocean Shipping Reform Act by assuring payments for damages against the NVOCC arising from transportation related activities and guaranteeing that any fines levied by the Federal Maritime Commission (FMC) are financially backed with a bond.

 

A domestic NVOCC is required to execute a $75,000 NVOCC Bond; and a foreign NVOCC is required to execute a $150,000 NVOCC Bond.  If there are additional branch offices, each one of the branches will add $10,000 to the NVOCC Bond required amount.

 

 

 

FMC BOND -

All Freight Forwarders / Ocean Transportation Intermediaries (OTI's) are required by the Ocean Shipping Reform Act of 1988 to provide proof of financial responsibility to secure their obligations to the Federal Maritime Commission (FMC) as well as to third parties for their transportation related activities as an OTI.

 

A Freight Forwarder id required to execute a $50,000 FMC Bond. If there are additional branch offices, each one of the branches will add $10,000 to the FMC Bond required amount.