What is a Washington Federal Maritime Commission Bond?
Get your OTI license by acquiring this bond!
The Federal Maritime Commission, by The Shipping Act of 1984, indicates that no license will be issued to Ocean Transportation Intermediaries (OTI) such as an Ocean Freight Forwarder (OFF) or a Non-Vessel-Operating Common Carrier (NVOCC) until they post a surety bond.
An Ocean Freight Forwarder (OFF) is an individual who is responsible for the following:
- Manages freight shipments that are imported to the U.S.
- Dispatches shipments from the U.S. to international destinations via an ocean carrier
- Tracks the movement of shipment and prepares the documentation
A Non-Vessel-Operating Common Carrier (NVOCC), on the other hand, is a common carrier that does not own or operate their vessels.
An NVOCC is also shipper in its relationship with an ocean common carrier involved in cargo movement.
What is the 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 surety bond amount will be up to $3,000,000.
Also, each group shall:
- Notify the Commission and provide documentation of its desire to participate
- Provide a list that contains each member of the group, the corresponding surety bond, and that claims will be permitted for each.
- 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 requires different surety bonds.
- An additional $21,000 should be added to the bond amount for Optional Rider for Additional NVOCC Financial These are the NVOCCs who intends to be included in the U.S.-China trade.
The Office of Passenger Vessels and Information Processing (OPVIP) will be the one responsible for reviewing and processing the submitted surety bond.
What are the bond conditions?
- 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
- 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 principal shall pay for any valid claims resulting from the principal’s transportation-related activity misconduct.
- The bond will remain valid until cancelled. In case of cancellation, a 30-day notice is required.
How do I get this type of Washington Federal Maritime Commission Bond?
First, you must submit a bond application.
We will ask you a couple of important information needed for the underwriting process such as the following:
- Your financial history
- Your business performance history
- Your credit score
Once those have been evaluated, we will issue the bond and send it to you immediately!
Need more information? Call us today!