Ocean Transportation Intermediary (OTI) Bonds
Companies operating as ocean freight forwarders and Non-Vessel Operating Common Carriers (NVOCCs) in the United States are required to be licensed and bonded as Ocean Transportation Intermediaries (OTIs). This bond guarantees that contractual relationships with shippers and carriers will be fulfilled. Additionally, the bond responds to claims filed by the shipping public to ensure compliance with Federal Maritime Commission regulations.
Licensing & Financial Requirements of United States domiciled OTIs:
- Ocean freight forwarders and NVOCCs presently conducting business in the United States are required to be licensed and bonded.
- A freight forwarder is required to maintain a minimum bond amount of $50,000.
- An NVOCC is required to maintain a minimum bond amount of $75,000.
If a forwarder also has an NVOCC operation within the same corporate structure, only one license is required; however, separate bonds must be filed.
Custodial Bonds (CF301 Activity Code 2)
- Truck Carriers
- In-Bond Movement
- Bonded Warehouses
- Container Freight Station
- Centralized Exam Station
Foreign Trade Zone Bond (CF301 Activity Code 4)
This bond guarantees the operation of a Foreign Trade Zone (FTZ) and guarantees FTZ operator will comply with CBP regulations for maintaining the FTZ. The minimum bond amount required by CBP is $50,000. However, the maximum amount is determined by each individual port director and therefore the limits may vary.
BMC-84 Bond (FMCSA Bond)
The BMC 84 Bond is required by FMCSA for any entity acting as property broker or domestic surface freight forwarder in the amount of $75,000.
Roanoke: Solutions That Go the Distance
Roanoke represents American Alternative Insurance Corporation with an “A+” rating from A.M. Best and can help you secure your company’s transportation surety bond. Insurance, surety and risk management solutions for supply chain and transportation intermediaries are Roanoke’s focus. Contact us at 1-800-ROANOKE (800-762-6653) for more information to find out how we can serve your specific needs.