OMB No. 3072-0018

Expires 11/30/2026

Form FMC-68

FEDERAL MARITIME COMMISSION

Ocean Transportation Intermediary (OTI) Guaranty Form

Guaranty in Respect of Ocean Transportation Intermediary (OTI) Liability for Damages, 

Reparations or Penalties Arising from Transportation-Related Activities Under the 

Shipping Act of 1984 (46 U.S.C. 40101-41309) (Shipping Act)

1. Whereas ___________________ (Name of Applicant [indicate whether NVOCC or Freight 

Forwarder]) (hereinafter “Applicant”) is or may become an Ocean Transportation Intermediary 

(“OTI”) subject to the Shipping Act of 1984 (46 U.S.C. 40101-41309) and the rules and regulations 

of the Federal Maritime Commission (FMC), or is or may become a group or association of OTIs, 

and desires to establish its financial responsibility in accordance with section 19 of the Shipping

Act (46 U.S.C. 41107-41109), then, provided that the FMC shall have accepted, as sufficient for 

that purpose, the Applicant's application, supported by evidence of a financial rating for the 

Guarantor of Class V or higher under the Financial Size Categories of A.M. Best & Company or 

equivalent from an acceptable international rating organization on such rating organization's 

letterhead or designated form, or, in the case of Guaranty provided by Underwriters at Lloyd's, 

documentation verifying membership in Lloyd's, or, in the case of surplus lines insurers, 

documentation verifying inclusion on a current “white list” issued by the Non-Admitted Insurers' 

Information Office of the National Association of Insurance Commissioners, the undersigned 

Guarantor certifies that it has sufficient and acceptable assets located in the United States to cover 

all damages arising from the transportation-related activities of the covered OTI as specified under 

the Shipping Act.

2. Whereas, this Guaranty is written to ensure compliance by the Applicant with section 19 of the 

Shipping Act (46 U.S.C. 40901-40904), and the rules and regulations of the Federal Maritime 

Commission relating to evidence of financial responsibility for OTIs (46 CFR part 515), this 

guaranty shall be available to pay any judgment obtained or any settlement made pursuant to a 

claim under 46 CFR 515.23 for damages against the Applicant arising from the Applicant's 

transportation-related activities under the Shipping Act, or order for reparations issued pursuant to 

section 11 of the Shipping Act (46 U.S.C. 41301-41302, 41305-41307(a)), or any penalty assessed 

against the Applicant pursuant to section 13 of the Shipping Act (46 U.S.C. 41107-41109).

3. Now, Therefore, The condition of this obligation is that the penalty amount of this Guaranty 

shall be available to pay any judgment obtained or any settlement made pursuant to a claim under 

46 CFR 515.23 for damages against the Applicant arising from the Applicant's transportationrelated activities or order for reparations issued pursuant to section 11 of the Shipping Act (46 

U.S.C. 41301-41302, 41305-41307(a)), or any penalty assessed against the Principal pursuant to 

section 13 of the Shipping Act (46 U.S.C. 41107-41109).
4. The undersigned Guarantor hereby consents to be sued directly in respect of any bona fide claim 

owed by Applicant for damages, reparations or penalties arising from Applicant's transportationrelated activities under the Shipping Act, in the event that such legal liability has not been 

discharged by the Applicant after any such claimant has obtained a final judgment (after appeal, if 

any) against the Applicant from a United States Federal or State Court of competent jurisdiction 

and has complied with the procedures for collecting on such a judgment pursuant to 46 CFR 

515.23, the FMC, or where all parties and claimants otherwise mutually consent, from a foreign 

court, or where such claimant has become entitled to payment of a specified sum by virtue of a 

compromise settlement agreement made with the Applicant and/or Guarantor pursuant to 46 CFR 

515.23, whereby, upon payment of the agreed sum, the Guarantor is to be fully, irrevocably and 

unconditionally discharged from all further liability to such claimant. In the case of a guaranty 

covering the liability of a group or association of OTIs, Guarantor's obligation extends only to 

such damages, reparations or penalties described herein as are not covered by another insurance 

policy, guaranty or surety bond held by the OTI(s) against which a claim or final judgment has 

been brought.

5. The Guarantor's liability under this Guaranty in respect to any claimant shall not exceed the 

amount of the guaranty; and the aggregate amount of the Guarantor's liability under this Guaranty 

shall not exceed the amount per OTI set forth in 46 CFR 515.21, or the amount per group or 

association of OTIs set forth in 46 CFR 515.21 in aggregate.

6. The Guarantor's liability under this Guaranty shall attach only in respect of such activities giving 

rise to a cause of action against the Applicant, in respect of any of its transportation-related 

activities under the Shipping Act, occurring after the Guaranty has become effective, and before 

the expiration date of this Guaranty, which shall be the date thirty (30) days after the date of receipt 

of mail or email (bcl@fmc.gov) written notice to the Director, Bureau of Certification and 

Licensing, Federal Maritime Commission, Washington, DC. 20573, that either Applicant or the 

Guarantor has elected to terminate this Guaranty. The Guarantor and/or Applicant specifically 

agree to file such written notice of cancellation.

7. Guarantor shall not be liable for payments of any of the damages, reparations or penalties 

hereinbefore described which arise as the result of any transportation-related activities of 

Applicant after the cancellation of the Guaranty, as herein provided, but such cancellation shall 

not affect the liability of the Guarantor for the payment of any such damages, reparations or 

penalties prior to the date such cancellation becomes effective.

8. Guarantor shall pay, subject to the limit of the amount per OTI set forth in 46 CFR 515.21, 

directly to a claimant any sum or sums which Guarantor, in good faith, determines that the 

Applicant has failed to pay and would be held legally liable by reason of Applicant's transportationrelated activities, or its legal responsibilities under the Shipping Act and the rules and regulations 

of the FMC, made by Applicant while this agreement is in effect, regardless of the financial 

responsibility or lack thereof, or the solvency or bankruptcy, of Applicant.

9. The Applicant or Guarantor will promptly notify the Director, Bureau of Certification and 

Licensing, Federal Maritime Commission, Washington, DC. 20573, in writing by mail or email 
(bcl@fmc.gov), of all claims made, lawsuits filed, judgments rendered, and payments made under 

the Guaranty.

10. Applicant and Guarantor agree to handle the processing and adjudication of claims by 

claimants under the Guaranty established herein in the United States, unless by mutual consent of 

all parties and claimants another country is agreed upon. Guarantor agrees to appoint an agent for 

service of process in the United States.

11. This Guaranty shall be governed by the laws in the State of ___________ to the extent not 

inconsistent with the rules and regulations of the FMC.

12. This Guaranty is effective the day of ____________ ,_____ 12:01 a.m., standard time at the 

address of the Guarantor as stated herein and shall continue in force until terminated as herein 

provided.

13. The Guarantor hereby designates as the Guarantor's legal agent for service of process domiciled 

in the United States __________, with offices located in the United States at __________ , for the 

purposes of enforcing the Guaranty described herein.

___________________________________________ 

(Place and Date of Execution)

___________________________________________

(Type Name of Guarantor)

___________________________________________

(Type Address of Guarantor)

___________________________________________

By

___________________________________________

(Signature and Title)

Form FMC 68

(Rev. 12/2015)