The Non-Vessel Operating Carrier Bond, also known as an NVOCC Bond, is required by all those engaged as Ocean Transportation Intermediaries (OTI’s) and guarantees compliance with the Ocean Shipping Reform Act.
The function of an NVOCC is to assume legal possession of a shipper’s cargo and through consolidation of the shipment, arrange for the packing, transportation and the loading of shipping containers bound for ocean transit.
The Federal Maritime Commission (FMC) is the agency responsible for licensing and monitoring of all ocean-based shipping, and regulates maritime shipping and commerce between U.S. organizations and foreign countries. Ocean Transportation Intermediaries (OTIs) are required to provide proof of financial security in the form of an FMC-48 surety bond to the FMC. This guarantees compliance with Section 19 of the Shipping Act (46 U.S.C. 40901-40904) and the rules and regulations of the FMC.
OTIs cannot operate without active acceptable proof of financial responsibility.
The NVOCC bond is in place to assure that payments for damages against the NVOCC arising from transportation related activities. This NVOCC Bond also serves as a guarantee that any fines levied by the Federal Maritime Commission are financially backed with a bond.
Currently, a domestic NVOCC is required to execute a $75,000 NVOCC Bond (Form 48); and a $150,000 NVOCC Bond is required for a foreign NVOCC. If there are several NVOCC branches domestically, each one of the branches will add $10,000 to the NVOCC Bond total.
This Federal Maritime Commission NVOCC Bond requires underwriting and we offer a 24 hour free approval process for your NVOCC Bond.