What is a Hawaii Federal Maritime Commission Bond?

Hawaii federal maritime commission bondFraudulent schemes and stakeholder deceptions have persisted in making headlines in the 21st century. In the shipping & ports domain, fraudulent activities abound. Some simple examples include the manipulation of financial statements, the illegal offers of inducements, and the proverbial pay-offs. In more explicit terms, the shipping industry is vulnerable to 1) cargo pilfering and misuse of assets, 2) improper revenue outflows, 3) unsupported payments, 4) falsifications of shipping and customs papers, and 5) carousel fraud, likewise referred to as the “VAT – merry-go-round.” It is because of these scenarios that the Federal Maritime Commission Bond is put in place.

The Federal Maritime Commission Bond is a watertight pronouncement that the shipping company will act in accordance with all of the provisions mandated by 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 maximum impartiality and composure.


Why do you need a Hawaii 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 Hawaii 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 $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 a Hawaii 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 outstanding financial documentation and excellent business performance are expected to pay lesser than those who have an unfounded and fallacious credit history.


How do I get a Hawaii 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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