A Non-Vessel Operating Common Carrier, NVOCC Surety Bond is required of firms who performs all services of an ocean carrier except without operating the vessels. Licensed by the Federal Maritime Commission (FMC), NVOCC’s buy services from ocean carriers, and though issuance of their own House Bill of Lading (HBL) with appropriate rate filings, are able to mark-up freight costs as they resell these services to their clients. The Federal Maritime Commission licenses all NVOCCs.
APPLICATION PROCESS FOR U.S.–BASED NVOCCS:
- Appoint a qualifying individual:
- A qualifying individual must have at least three years of demonstrable Ocean Transport Intermediary experience and, depending on the business form, be an officer of the applicant’s corporation, the sole proprietor, or a partner in a partnership.
- The qualifying individual’s experience must have been gained in the United States.
- Submit electronically or print out and complete Form FMC-18: Application for a License as an Ocean Transportation Intermediary.
- Submit Form FMC-18 and the required license application fee.
What is the bond amount?
Licensed, U.S.-based NVOCCs are required to submit proof of financial responsibility (a NVOCC surety bond), in the amount of $75,000.
Non-U.S.-based NVOCCs, unless licensed, are required to submit an NVOCC surety bond in the amount of $150,000; and are required to use a licensed OTI for any OTI services performed on its behalf in the United States.
How do I apply for a NVOCC Surety Bond?
At Surety1, we make it easy to apply for any type of surety bond. Simply complete our easy to navigate, online application and usually within 1 business day one of our surety professionals will contact you with a firm quote for the bond. Then make payment (all major credit cards accepted), sign some paperwork and your NVOCC surety Bond will be filed electronically with the FMC. The underwriting for this bond is credit based. Rates can be less than 1% with excellent credit and go up from there. Surety1 has markets that will accept co-signors if credit is an issue.
Surety1 is a service of AssuredPartners, one of the nations largest and fastest growing insurance agencies. Surety1 is the premier, online provider of surety bonds nationwide since 2003. Licensed in all 50 states, Surety1 maintains an A+ rating from the Better Business Bureau and represents over a dozen, “A” rated surety companies.