What is a North Dakota Federal Maritime Commission Bond?
The year 2016 was a time of prominent merger and acquisition activities within the shipping industry. Maersk acquired Hamburg Sud then CMA CGM formally purchases APL (NOL Group), and there was China Shipping and Cosco legitimately merging.
On top of these, there was Hapag-Lloyd signing a business combination agreement to unite with United Arab Shipping Company. All these mergers taking place in the shipping industry signifies less competition as each shipper now controls a bigger market share with the power and the advantage to better prices and plans. As a result, end-users see potentially rising freight rates.
How in actual terms the new-fangled collaborations will impact capacity and rates is vague—however, with fewer coalitions to select from, it becomes a little harder to constrain rivalry and stabilize cost with service.
This type of ambiguity can lead end-users to get confused on which shipping company services to avail from. The existence of a Federal Maritime Commission Bond in a shipping company’s portfolio can aid consumers to make a decision.
The Federal Maritime Commission Bond is an unassailable assertion that a 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 at all times.
Why do you need a North Dakota 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 North Dakota Federal Maritime Commission Bond
The Federal Maritime Commission Bond specifies that:
For OFFs (Ocean Freight Forwarder), the Federal Maritime Commission bond coverage is for $50,000 with an accompanying $10,000 coverage for every American stand-alone area office.
For licensed NVOCCs (Non-Vessel-Operating Common Carrier), Federal Maritime Commission bond is for $75,000 plus $10,000 for every U.S. autonomous office aside of the main 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.
How much does a North Dakota Federal Maritime Commission Bond cost?
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 North Dakota 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.