The Federal Maritime Commission (FMC) has reviewed and believes the bond amounts, as currently required, are insufficient to demonstrate financial responsibility of the OTI (Ocean Transportation Intermediaries) due to the large number of bond saturations the FMC has seen. They have proposed that domestic NVOs increase their current bond requirement from $75,000 to $100,000 and up to $200,000 in the case of a foreign NVO. They have proposed that ocean freight forwarders bonds be increased from the minimum of $50,000 to $75,000. Failure to maintain bonds in sufficient amounts will result in license revocation by the FMC.
We will keep you posted on further developments regarding these changes.
For more information on this legislation, please click here.