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What is a Minnesota Federal Maritime Commission Bond?

Minnesota Federal Maritime Commission BondBefore they can carry out their tasks, Ocean Transportation Intermediaries (OTIs) like an Ocean Freight Forwarder (OFF) or a Non-Vessel-Operating Common Carrier (NVOCC) must obtain a surety bond.

In accordance with The Shipping Act of 1984, the Federal Maritime Commission requires a surety bond. This financial responsibility proof is required for both licensed OTIs and license applicants.

An Ocean Freight Forwarder (OFF) is someone who is in charge of the following:

  • Ships cargo from the United States to international locations via an ocean carrier.
  • Manages freight shipments that are imported to the U.S.
  • Follows the progress of a shipment and compiles the necessary paperwork.

An NVOCC, on the other hand, is a common carrier that does not own or operate its own vessels. In its partnership with an ocean common carrier engaged in cargo transportation, an NVOCC is also a shipper.

 

What is the Minnesota Federal Maritime Commission Bond amount?

Individual OTI Bond Amount

$50,000 – Ocean Freight Forwarder (OFF)

$75,000 – an individual operating in the U.S. as a Non-Vessel-Operating Common Carrier (NVOCC)

$150,000 – registered NVOCC whose primary place of business is outside the U.S.

Group OTI Bond Amount

The Ocean Transportation Intermediaries group will have a surety bond of up to $3,000,000. Furthermore, each group must:

  • Provide a list that contains each member of the group, the corresponding surety bond, and that claims will be permitted for each.
  • Notify the Commission and provide documentation of its desire to participate
  • Provide the Commission with a copy of the financial responsibility coverage.

Individuals who use the same common trade name must each provide their own surety bond.

Surety bonds for federal military and civilian household products are not the same.

For Optional Rider for Additional NVOCC Financial Responsibility, an additional $21,000 shall be added to the bond amount. These are the NVOCCs that want to participate in the commerce between the United States and China.

The Office of Passenger Vessels and Information Processing (OPVIP) is in charge of reviewing and processing the surety bond that has been provided.

 

What are the Minnesota Federal Maritime Commission Bond conditions?

  • The principal must abide by the Shipping Act of 1984, the Coast Guard Authorization Act of 1998, and all other applicable requirements.
  • The bond is valid until it is canceled. A 30-day notice is required in the event of cancellation.
  • Any valid claims arising from the principal’s transportation-related activity wrongdoing must be paid by the principal.
  • A surety bond company recognized by the US Department of Treasury, such as Surety Bond Authority, should issue the bond.

 

How do I get this type of bond? 

You must first fill out a bond application.

We’ll ask you for a few pieces of information that will help us with the underwriting process, such as your job performance history, credit score, and financial history.

We will issue the bond and deliver it to you as soon as those have been evaluated!

Give us a Call or email us anytime!
 

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