Ocean Transportation Intermediary (OTI/NVOCC) Bond: Requirements, Cost & Renewal Guide

Start Your OTI or NVOCC Bond Application

If you operate as an ocean freight forwarder or a non-vessel-operating common carrier (NVOCC), you must provide proof of financial responsibility to the Federal Maritime Commission before you can begin operating. For most applicants, that means obtaining an Ocean Transportation Intermediary Bond on Form FMC-48.

The required bond amount depends on how your business operates: ocean freight forwarders need $50,000 in financial responsibility, and U.S.-based NVOCCs need $75,000.

American Surety Bonds Agency provides experienced underwriting for OTI and NVOCC bonds. Complete our online application, and our underwriting team will review your information and let you know what’s needed to obtain your bond. Most applicants receive their approval within one business day, and some receive it the same day once all underwriting requirements have been submitted.

Start Your OTI or NVOCC Bond Application

Review the Federal Maritime Commission’s OTI licensing and certification information.

The Ocean Transportation Intermediary Bond goes by several names depending on where you look. You may also see it called:

• NVOCC Bond
• OTI Bond
• Ocean Freight Forwarder Bond
• FMC Bond
• FMC-48 Bond

These terms all describe the same federal financial-responsibility bond. Ocean Transportation Intermediary Bond is the formal name printed on the bond form itself (Form FMC-48); the others are common shorthand for the same requirement.

An Ocean Transportation Intermediary Bond is a federal surety bond that serves as proof of financial responsibility for an ocean freight forwarder or NVOCC regulated by the Federal Maritime Commission. It supports the OTI’s compliance with the Shipping Act and FMC regulations, and it may respond to qualifying judgments, settlements, reparations, or civil penalties arising from the OTI’s transportation-related activities.

This bond does not protect your business from its own losses. If the surety pays a valid claim, your business remains responsible for reimbursing the surety.

Ocean Transportation Intermediary is the category the FMC uses for two types of businesses: ocean freight forwarders and non-vessel-operating common carriers. Your classification determines your required bond amount and how Form FMC-48 must identify your business.

Ocean Freight Forwarder

An ocean freight forwarder arranges or dispatches shipments from the United States through a common carrier on behalf of shippers. This work can include booking cargo space, preparing shipping documents, coordinating cargo movement, and handling other activities related to an export shipment.

Non-Vessel-Operating Common Carrier (NVOCC)

An NVOCC provides ocean transportation without operating the vessel used to move the cargo. In its relationship with an ocean common carrier, the NVOCC acts as a shipper. NVOCC services can include purchasing carrier transportation for resale, issuing bills of lading, collecting freight charges, arranging inland transportation, and coordinating cargo movements.

Some businesses operate under both authorities. Confirm your FMC classification before applying, since it determines your bond amount.

You likely need this bond if your business operates in one of the following categories:

• A U.S.-based ocean freight forwarder applying for or maintaining an FMC license
• A U.S.-based NVOCC applying for or maintaining an FMC license

Businesses located in the United States generally may not advertise, hold themselves out, or operate as OTIs without a valid FMC license, unless a regulatory exception applies.

The FMC requires OTIs to demonstrate financial responsibility before they begin providing regulated ocean transportation intermediary services. As a result, this bond helps:

• Support accountability for transportation-related obligations under the Shipping Act and FMC regulations
• Give shippers, common carriers, and other affected parties a source of recourse for covered damages, reparations, or penalties
• Promote trust and compliance across the ocean transportation industry

An OTI must keep acceptable financial responsibility in effect while operating. If an FMC-48 bond is terminated without replacement coverage, the FMC may revoke the license when the cancellation becomes effective.

Rates start as low as $400 per year for the Ocean Freight Forwarder Bond, or as low as $600 per year for the NVOCC Bond.

Your premium is only a percentage of the required $50,000 or $75,000 bond amount, not the amount you pay out of pocket. Once your OTI classification and bond amount are confirmed, your rate may depend on:

• The required bond amount and OTI classification
• Personal and business credit history
• Business experience and financial condition
• License history

If your business operates through one or more unincorporated branch offices, additional bond coverage may be required for each location – call us for more information.

At American Surety Bonds Agency, we work with a wide array of markets, from preferred clients to non-traditional clients and everyone in between, to help find the right rate for your Ocean Transportation Intermediary Bond.

This bond renews annually. Premium is due each year to keep your bond active, and you must maintain acceptable financial responsibility for as long as you operate as an OTI. If premium is not paid, the bond is canceled.

To cancel the bond, the principal or surety must give written notice to the FMC’s Bureau of Certification and Licensing. Cancellation becomes effective 30 days after the Commission receives that notice. If you don’t have replacement financial responsibility filed by then, the FMC can revoke your OTI license.

Your bond renewal and your FMC license renewal are separate requirements. Licensed OTIs generally renew their FMC license every three years according to the FMC’s own schedule.

Review the FMC’s guidance on OTI license and registration renewals.

Obtaining your bond through American Surety Bonds Agency is simple.

1. Complete the online application for the Ocean Transportation Intermediary Bond.
2. Our underwriting team reviews your application and contacts you if any additional information is needed.
3. Review your approval and pay to finalize your bond.
4. Receive your completed, signed and sealed bond to submit with your FMC filing.

With your bond in place, you’ll be ready to keep your OTI license in good standing.

American Surety Bonds Agency has been helping businesses meet their surety bond requirements for decades. Whether you’re applying for your first license or renewing an existing one, our experienced team is here to help make the bonding process simple and efficient.

When you choose American Surety Bonds Agency, you’ll receive:

• Experienced surety bond professionals
• Competitive rates from leading surety companies
• Fast underwriting and responsive customer service
• A secure online application process
• Assistance throughout the bonding process

Above all, our goal is to make the bonding process straightforward, so you can move forward with confidence.

American Surety Bonds Agency makes obtaining your bond simple, competitive, and hassle-free.

Apply today and keep your OTI license in good standing.

Start Your OTI or NVOCC Bond Application

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We offer a wide variety of commercial surety bonds for businesses nationwide.

Whether you need one bond or several, our experienced team is here to help.

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Need a Freight Broker Bond?

If your business also operates as a property broker regulated by the Federal Motor Carrier Safety Administration, you may separately need a Freight Broker Bond. This federal motor-carrier requirement is independent of the FMC-48 OTI bond.

Learn More About Freight Broker Bonds on Our Hub Page

Complete our simple online application, or speak with one of our surety specialists today.

American Surety Bonds Agency proudly serves businesses nationwide with fast approvals, competitive rates, and responsive service.

American Surety can also assist you with any of your other bonding needs, as we are licensed in all 50 states. Give us a call at 404-486-2355 (or toll-free at 877-201-8976), or find us on Facebook, Twitter, or LinkedIn!