What is a Utah Federal Maritime Commission Bond?
Get your OTI license by acquiring this bond!
Ocean Transportation Intermediaries (OTI) such as a Non-Vessel-Operating Common Carrier (NVOCC) or an Ocean Freight Forwarder (OFF), are required to post a bond before they can perform their duties.
Both license applicants and licensed OTIs need this proof of financial responsibility. The surety bond is mandated by the Federal Maritime Commission in line with The Shipping Act of 1984.
An Ocean Freight Forwarder (OFF) is an individual who is responsible for the following:
- Dispatches shipments from the U.S. to international destinations via an ocean carrier
- Manages freight shipments that are imported to the U.S.
- Tracks the movement of shipment and prepares the documentation
On the other hand, a Non-Vessel-Operating Common Carrier (NVOCC) is a common carrier that does not own or operate its vessels.
An NVOCC is also a shipper in its relationship with an ocean common carrier involved in cargo movement.
What is the Surety 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
For group Ocean Transportation Intermediaries, the surety bond amount will be up to $3,000,000. Each cluster should also:
- 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 a copy of the financial responsibility coverage to the Commission.
Individuals under the same common trade name should furnish a surety bond separately. Federal military and civilian household goods require different surety bonds.
An additional $21,000 should be added to the bond amount for Optional Rider for Additional NVOCC Financial Responsibility.
These are the NVOCCs who intend to be included in the U.S.-China trade.
The one who will be responsible for the reviewing and processing of the submitted surety bond is the Office of Passenger Vessels and Information Processing (OPVIP).
What are the Bond conditions?
- The principal shall pay for any valid claims resulting from the principal’s transportation-related activity misconduct.
- The principal shall comply with the provisions of the Shipping Act of 1984, the Coast Guard Authorization Act of 1998, and all other applicable rules.
- The bond will remain valid until canceled. In the case of cancellation, a 30-day notice is required.
- The bond should be issued by a surety bond company that is recognized by the U.S. Department of Treasury such as Surety Bond Authority
How do I secure a Utah Federal Maritime Commission Bond?
STEP 1: You must submit a bond application.
STEP 2: We will then ask you a couple of relevant information needed for the underwriting process such as your: job performance history, credit score, and financial history.
STEP 2: Once those were evaluated, we will issue and send the surety bond to you immediately!
Ready to get bonded? Give us a call today!