Maritime Commission Bond (FMC 48)

Learn more about Maritime Commission bonds, and apply today. Single Source Insurance offers surety bonds nationwide through a convenient online application system.

What Are Maritime Commission Bonds?

The Federal Maritime Commission (FMC) requires every U.S.-based ocean freight forwarder (OFF) or non-vessel-operating common carrier (NVOCC) to obtain a surety bond generically known as an Ocean Transportation Intermediary (OTI) bond in order to become licensed.

An OFF�is any U.S.-based company or person that makes the arrangements to move cargo from the U.S. to a foreign destination, which can include shipping them by common carriers or acting as the intermediary between shippers and common carriers, processing the necessary paperwork, and otherwise facilitating shipments.
An NVOCC�is a common carrier that provides ocean transportation to the public and issues the necessary documentation, such as bills of lading, but does not operate any vessels.

Who Needs Maritime Commission Bonds and Why Are They Essential?

An OFF or NVOCC seeking a license in the U.S. must obtain the appropriate OTI bond. OTI bonds are distinguished by the bond forms that must be filed with the Federal Maritime Commission:

FMC-48 bonds for individual OTIs
FMC-69 bonds for groups of associated OTIs

The bond amount differs depending on the nature of the party obtaining it (the principal in the surety bond arrangement). Here are the required amounts:

$50,000 for OFFs
$75,000 for licensed NVOCCs based in the U.S.
$75,000 for licensed NVOCCs based outside of the U.S.
$150,000 for unlicensed NVOCC based outside of the U.S.

How Do They Work?

Maritime commission bonds are intended to protect the U.S. government and shippers by guaranteeing that OFFs and NVOCCs operate in accordance with the regulations established by the Federal Maritime Commission and the Ocean Shipping Reform Act. Any violation resulting in financial loss can result in a claim being filed against the OFF�s or NVOCC�s bond.

The surety company will investigate to make sure the claim is valid and will pay the claimant if it is�but the principle must then reimburse that amount to the surety company.

What Do They Cost?

The applicant will pay a percentage of the total bond amount as the annual premium for an FMC bond. That percentage, or premium rate, is established on a case-by-case basis by the surety company. The main factors that can impact the premium rate are the applicant�s creditworthiness (based on a credit score and financial data) and the likelihood of a claim being filed against the bond (based on the applicant�s industry experience and track record).

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FMC bonds can be a complicated subject, but you can rely on us to help you get the bond you need.

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