Thursday, August 29, 2019 Informative

What is an Ocean Transportation Intermediary (OTI)?

An ocean transportation intermediary (OTI) is a company that is licensed by the Federal Maritime Commission (FMC) to operate in the United States as an ocean freight forwarder, non-vessel operating common carrier (NVOCC), or both.

How to Apply for an OTI License. www.fmc.gov

 

What is an OTI Bond?

OTI bonds are required by the Federal Maritime Commission (FMC) from all ocean freight forwarders (OFFs) and non-vessel-operating common carriers (NVOCCs) who wish to become licensed as ocean transportation intermediaries (OTI) and operate in the United States.

The cost of your OTI bond depends on its bonding amount– whether it’s a $50,000, $75,000, $96,000, or $150,000 bond. When determining the rate or surety premium of a bond, sureties base it on the total bonding amount and make it a percentage thereof.

To determine your rate, sureties look at your personal credit score first and foremost, and at other financial and business-related items, such as your financial statements or industry experience.

If you have a high credit score and a solid business history you can expect to receive a standard market rate: from 1%-5% of the total amount of your bond. If your credit score isn’t that high, the surety will typically offer a rate that’s between 5%-10% of the bonding amount.

So, to obtain a NVOCC bond at standard rates for a licensed U.S. entity you would have to pay between $750 and $3,750.

For complete details visit Lance Surety Bonds website. www.suretybonds.org
Complete List of Registered OTIs / NVOCCs 2019 By FMC Records 364KB