NVOCC Surety Bond Requirements
An NVOCC (Non-Vessel Operating Common Carrier) surety bond is a $75,000 federal bond required by the Federal Maritime Commission for companies operating as NVOCCs. This bond guarantees compliance with FMC regulations and protects customers from financial losses.
To obtain an NVOCC bond, companies must apply through a licensed surety bond provider. The bond amount remains constant at $75,000 regardless of the NVOCC's size or volume of business. Annual renewal is required to maintain active NVOCC registration.
Benefits of NVOCC Bonding
NVOCC bonds provide important protections for shippers and consignees. The bond ensures compensation if an NVOCC fails to fulfill contractual obligations or violates FMC regulations. This gives customers confidence when working with bonded NVOCCs.
For NVOCCs, obtaining a surety bond demonstrates financial stability and regulatory compliance. This can help attract business and establish credibility in the industry. The bond also allows NVOCCs to legally operate and provide ocean transportation services.
