What is an Alaska Federal Maritime Commission Bond?

Alaska Federal Maritime Commission BondEach day, the maritime shipping industry struggles with overloading, changeable freight rates, and sluggish economic growth, everyone is on guard for a multitude of new directives and developments that will amplify the already mounting business challenges that importers, exporters, freight carriers, and port operators have to deal with.

One problem worth mentioning is the new global directive calling for all containers shipped by ocean carriers to have their weight confirmed remains a top priority issue for both shippers and ocean freight carriers. However, insufficient reserves in port infrastructure to handle and deal with the projected blitz of mega-ships, along with insinuations of more consolidation and rivalry, have industry stakeholders feeling apprehensive.

Due to these brimming issues, ethics and good corporate governance will become strategic resources for shippers and ocean freight carriers for them to differentiate themselves from each other and enhance their value and performance. In meeting this goal, the Federal Maritime Commission Bond will be a great asset.

The Alaska Federal Maritime Commission Bond is an incontrovertible declaration that the shipping company will act in accordance with all of the provisions laid down in the Shipping Act of 1984, the stipulations of the Foreign Shipping Practices Act of 1988, the specifications under Section 19 of the Merchant Marine Act (1920), and all conditions spelled out under Public Law 89-777. It is also an indisputable warranty that clients, partners, and all stakeholders will be dealt with absolute neutrality and level-headedness.


Why do you need an Alaska Federal Maritime Commission Bond?

Having a Federal Maritime Commission Bond renders you as a stable and capable business owner who can provide services in a principled approach. The bond can exceptionally enhance your reputation as a shipping business owner and can heighten your leadership within the industry. With this bond, customers are confident that as they avail of your services, they will be protected.


More details about the Alaska Federal Maritime Commission Bond

The Federal Maritime Commission Bond specifies that:

For OFFs (Ocean Freight Forwarder), the Federal Maritime Commission bond coverage is $50,000 with an accompanying $10,000 coverage for every American stand-alone area office.

For licensed NVOCCs (Non-Vessel-Operating Common Carrier), the Federal Maritime Commission bond is for $75,000 plus $10,000 for every U.S. autonomous office aside from the primary workplace. On the other hand, unlicensed NVOCCs not based within the US must carry with them a $150,000 bond.

Violating any prerequisite of the Shipping Act can lead to fines of up to $5,000 for every infringement, or up to $25,000 for each transgression when committed on purpose.


What is the cost of an Alaska Federal Maritime Commission Bond?

The bond with all its features and benefits is not expensive. However, a Federal Maritime Commission Bond premium is hugely reliant on your financial credit report and status as a business person. Qualified candidates with excellent financial documentation and commendable business performance are expected to pay lesser than those who have an unfounded and fallacious credit history.


How do I get an Alaska Federal Maritime Commission Bond?

Getting a bond is simple. Be sure to get in touch with genuine professionals only. Give Surety Bond Authority specialists a call now! With Surety Bond Authority taking care of your business affairs, you will have the answers you need and the solution to whatever concerns you have in protecting your business.

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