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).   The 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. 

The Ocean Shipping Reform Act of 1998 resulted in a number of significant changes pertaining to the licensing and financial requirements of OTIs which include freight forwarders and NVOCCs.

Licensing and 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 plus $10,000 for each additional location.

If a forwarder also has an NVOCC operation within the same corporate structure, only one license is required; however a separate bond must be filed. The minimum NVOCC bond amount is $75,000, plus $10,000 for each additional branch office acting as an NVOCC.