NVOCC Broker Bond Application
An Ocean Freight Forwarder and Non-Vessel-Operating Common Carrier (NVOCC) Surety Bond is required by the Federal Maritime Commission (FMC) for businesses arranging or providing ocean transportation in U.S. foreign commerce. This bond is a mandatory condition of licensing and ensures compliance with federal maritime regulations.
Apply below, call our Commercial Department at 407-786-7770 or email us at [email protected].
Why You Need a NVOCC Broker Surety Bond
You need an Ocean Freight Forwarder or NVOCC Bond because it is a federal licensing requirement enforced by the Federal Maritime Commission. The bond must be filed before your FMC license or registration is approved and must remain active to legally operate.
This bond protects shippers and the public by ensuring freight forwarders and NVOCCs:
- Properly handle shipper funds and cargo arrangements
- Comply with FMC regulations and tariff requirements
- Fulfill contractual and financial obligations
- Avoid fraudulent or deceptive business practices
Without an active bond on file, the FMC will deny, suspend, or revoke your operating authority.
NVOCC Broker Surety Bond FAQs
These are some of the most common questions asked about NVOCC Broker Surety Bonds and how they work.
An Ocean Freight Forwarder or NVOCC Bond is a federally required surety bond that guarantees compliance with the Shipping Act and Federal Maritime Commission regulations. The bond provides financial protection to shippers if a licensed forwarder or NVOCC fails to perform services, mishandles funds, or violates federal law.
If a violation occurs, an injured party may file a claim against the bond to recover financial losses. The bond does not protect the forwarder or NVOCC; it protects shippers and enforces regulatory compliance.
Ocean Freight Forwarder and NVOCC Bonds operate as a three-party agreement between the licensee (principal), the surety company, and the Federal Maritime Commission. The bond guarantees that the licensee will comply with all applicable maritime laws and financial responsibilities.
If a freight forwarder or NVOCC fails to meet obligations—such as nonpayment, improper cargo handling, or regulatory violations—a claim may be filed against the bond. The surety investigates the claim and, if valid, pays damages up to the bond amount. The licensee is then legally required to reimburse the surety for all amounts paid.
The bond must remain continuously active. Cancellation or lapse of the bond results in immediate suspension or revocation of FMC authority.
The cost of an Ocean Freight Forwarder or NVOCC Bond is a small annual premium based on credit and financial strength, not the full bond amount.
Typical FMC bond requirements include:
- Ocean Freight Forwarder Bond: 50,000
- NVOCC Bond (U.S. based): 75,000
- NVOCC Bond (foreign based): 150,000
Applicants with strong credit generally pay 1%–3% of the bond amount annually. Higher-risk applicants may pay higher premiums or require additional underwriting.
You must obtain an Ocean Freight Forwarder or NVOCC Bond if you:
- Arrange ocean transportation for others
- Act as an intermediary between shippers and ocean carriers
- Issue your own bills of lading as an NVOCC
- Apply for or maintain FMC licensing or registration
Both U.S.-based and foreign-based NVOCCs are subject to FMC bonding requirements.
To obtain a bond, apply through a licensed surety agency and provide your FMC license or application details. The surety will review your personal or business credit profile and issue a quote.
Once approved and payment is made:
- The bond is issued in the exact FMC-required format
- The surety files the bond directly with the FMC
To renew, simply pay the annual premium before the bond expiration date. Failure to renew will result in immediate loss of FMC authority and inability to legally operate.