{"id":2226,"date":"2018-09-10T15:30:02","date_gmt":"2018-09-10T19:30:02","guid":{"rendered":"\/?page_id=2226"},"modified":"2024-02-27T10:01:58","modified_gmt":"2024-02-27T14:01:58","slug":"ocean-transportation-intermediaries","status":"publish","type":"page","link":"\/resources-services\/ocean-transportation-intermediaries\/","title":{"rendered":"Ocean Transportation Intermediaries"},"content":{"rendered":"<h1>Ocean Transportation Intermediaries<\/h1>\n<p>Ocean Transportation Intermediaries (OTIs) are either Ocean Freight Forwarders or Non-Vessel-Operating Common Carriers and are regulated by the FMC pursuant to the\u00a0Shipping Act of 1984.<\/p>\n<p>An\u00a0<strong>Ocean Freight Forwarder (OFF)<\/strong>\u00a0is an individual or company located in the U.S. which:<\/p>\n<ul>\n<li>arranges cargo movement to an international destination<\/li>\n<li>dispatches shipments from the United States via common carriers and books or otherwise arranges space for those shipments on behalf of shippers<\/li>\n<li>prepares and processes the documentation and performs related activities pertaining to those shipments<\/li>\n<\/ul>\n<p>Prior to Offering Services in the U.S. Trades, OFFs:<\/p>\n<ul>\n<li>are\u00a0<a href=\"https:\/\/www.ecfr.gov\/current\/title-46\/chapter-IV\/subchapter-B\/part-515#515.3\">required to obtain a license from the FMC<\/a>\u00a0(46 CFR \u00a7 515.3)<\/li>\n<li>are\u00a0<a href=\"https:\/\/www.ecfr.gov\/current\/title-46\/chapter-IV\/subchapter-B\/part-515#subpart-C\">required to submit proof of financial responsibility for payment of claims<\/a>\u00a0(46 CFR Part 515 Subpart\u00a0C) arising from transportation-related activities<\/li>\n<\/ul>\n<p>A\u00a0<strong>Non-Vessel-Operating Common Carrier (NVOCC)<\/strong>\u00a0is:<\/p>\n<ul>\n<li>a common carrier that holds itself out to the public to provide ocean transportation, issues its own house bill of lading or equivalent document, and does not operate the vessels by which ocean transportation is provided<\/li>\n<li>a shipper in its relationship with the vessel-operating common carrier involved in the movement of cargo<\/li>\n<\/ul>\n<p>Prior to Offering Services in the U.S. Trades, NVOCCs:<\/p>\n<ul>\n<li>are\u00a0<a href=\"https:\/\/www.ecfr.gov\/current\/title-46\/chapter-IV\/subchapter-B\/part-515#515.3\">required to obtain a license from the FMC<\/a>\u00a0(46 CFR \u00a7 515.3)\u00a0(if a U.S.-based company)<\/li>\n<li>are\u00a0<a href=\"https:\/\/www.ecfr.gov\/current\/title-46\/chapter-IV\/subchapter-B\/part-515#subpart-C\">required to submit proof of financial responsibility for payment of claims<\/a>\u00a0(46 CFR Part 515 Subpart\u00a0C)\u00a0(arising from its transportation-related activities<\/li>\n<li>are\u00a0<a href=\"https:\/\/www.ecfr.gov\/current\/title-46\/chapter-IV\/subchapter-B\/part-520#520.3\">required to publish a tariff<\/a>\u00a0(46 CFR \u00a7 520.3)<\/li>\n<\/ul>\n<h2><strong>Applying for an OTI License<\/strong><\/h2>\n<p>U.S.-based companies or sole proprietors operating as OFFs or NVOCCs are required\u00a0<a href=\"\/resources-services\/how-to-apply-for-an-oti-license\/\">to obtain a license from the FMC<\/a>. Non-U.S.-based NVOCCs may obtain an FMC-issued license if they have a qualifying US presence.<\/p>\n<h2 id=\"publication-of-tariffs\"><strong>Publication of Tariffs<\/strong><\/h2>\n<p>All NVOCCs operating in the U.S. trades are\u00a0<a href=\"https:\/\/www.ecfr.gov\/current\/title-46\/chapter-IV\/subchapter-B\/part-520#520.3\">required to publish a tariff<\/a>\u00a0(46 CFR \u00a7 520.3). \u00a0Tariffs must be open for public inspection\u00a0and show all rates, charges, classifications, rules, and practices between all points or ports on their service routes.<\/p>\n<p>Tariffs must be published:<\/p>\n<ul>\n<li>Prior to a license being issued, and prior to commencement of services, a NVOCC must provide the Commission its organization name, home office address, name and telephone number of firm’s representative, the location of its tariff(s), and the publisher used to maintain its tariff(s), and submit this information using <a href=\"https:\/\/www2.fmc.gov\/Form1\">Form FMC-1<\/a>. (<a href=\"https:\/\/www.ecfr.gov\/current\/title-46\/part-520\/section-520.3#p-520.3(d)\">46 CFR \u00a7 520.3(d)<\/a>)<\/li>\n<li>If there is any change to the information on Form FMC-1, it must be submitted to the Commission within 30 days.<\/li>\n<li>A non-U.S.-based NVOCC must list in its tariff an agent for service of process in the United States. ((<a href=\"https:\/\/www.ecfr.gov\/current\/title-46\/part-520\/section-520.11#p-520.11(b)\">46 CFR 520.11(b)<\/a>)<\/li>\n<\/ul>\n<p>The Commission publishes the location of all\u00a0<a href=\"https:\/\/www2.fmc.gov\/FMC1Users\/scripts\/ExtReports.asp?tariffClass=oti\">NVOCC tariffs online<\/a>.<\/p>\n<p>Please see the below relevant industry advisories:<\/p>\n<div class=\"su-posts su-posts-teaser-loop\">\n\t\t\t\t\t<div id=\"su-post-8105\">\n\t\t\t\t\t\n\t\t\t<p><a href=\"\/fmc-announces-hearing-on-shipping-conditions-in-the-red-sea\/\">Commission Advisory Regarding Red Sea Surcharges<\/a> <br \/>\n\nPosted: January 12, 2024\t\t\t\t<\/p>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<div id=\"su-post-8093\">\n\t\t\t\t\t\n\t\t\t<p><a href=\"\/industry-advisory-requiring-no-cost-access-to-tariff-publication-systems\/\">Industry Advisory \u2013 Requiring No Cost Access to Tariff Publication Systems<\/a> <br \/>\n\nPosted: January 4, 2024\t\t\t\t<\/p>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<div id=\"su-post-7894\">\n\t\t\t\t\t\n\t\t\t<p><a href=\"\/industry-advisory-names-of-non-compliant-nvoccs-posted-to-fmc-website\/\">Industry Advisory – Names of Non-Compliant NVOCCs Posted to FMC Website<\/a> <br \/>\n\nPosted: August 31, 2023\t\t\t\t<\/p>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<div id=\"su-post-7788\">\n\t\t\t\t\t\n\t\t\t<p><a href=\"\/industry-advisory-requirements-for-doing-business-with-nvoccs-and-offs\/\">Industry Advisory \u2014 Requirements for Doing Business with NVOCCs and OFFs<\/a> <br \/>\n\nPosted: July 13, 2023\t\t\t\t<\/p>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<div id=\"su-post-7375\">\n\t\t\t\t\t\n\t\t\t<p><a href=\"\/industry-advisory-requirement-to-maintain-accurate-information-on-fmc-form-fmc-1\/\">Industry Advisory\u2014Requirement to Maintain Accurate Information on FMC Form FMC-1<\/a> <br \/>\n\nPosted: January 10, 2023\t\t\t\t<\/p>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n<h2><strong>Service Contracts<\/strong><\/h2>\n<p><a href=\"\/resources-services\/how-to-file-service-contracts\/\">A NVOCC may enter into a service contract<\/a>\u00a0for transportation services with a vessel-operating common carrier as a shipper signatory. The shipper party (NVOCC) must certify on the signature page its shipper status.<\/p>\n<h2><strong>NVOCC Service Arrangements (NSAs)<\/strong><\/h2>\n<p>NVOCCs that are in compliance with the requirements of\u00a0<a href=\"https:\/\/uscode.house.gov\/view.xhtml?path=\/prelim@title46\/subtitle4\/partA\/chapter409&edition=prelim\">the Shipping Act (46 USC 40901-40904)<\/a>\u00a0and\u00a0<a href=\"https:\/\/www.ecfr.gov\/current\/title-46\/chapter-IV\/subchapter-B\/part-515\">the Commission’s licensing and financial responsibility requirements<\/a>\u00a0(46 CFR \u00a7 515) may enter into an NSA with one or more NSA Shippers subject to\u00a0<a href=\"https:\/\/www.ecfr.gov\/current\/title-46\/chapter-IV\/subchapter-B\/part-531\">the Commission’s rules governing NVOCC Service Arrangements<\/a>\u00a0(46 CFR \u00a7 531).<\/p>\n<h2><strong>NVOCC Negotiated Rate Arrangements (NRAs)<\/strong><\/h2>\n<p>NVOCCs may enter into negotiated rate arrangements when provided exception from certain tariff rate publication requirements. The FMC procedures and requirements to qualify for and use the exemption are found in\u00a0<a href=\"https:\/\/www.ecfr.gov\/current\/title-46\/chapter-IV\/subchapter-B\/part-532\">Part 532 of the Commission’s Regulations<\/a>.<\/p>\n<h2>Contact Information<\/h2>\n<p><strong>Licensing and Proof of Financial Responsibility<\/strong><\/p>\n<p>Phone: 202-523-5843<\/p>\n<p>E-mail:\u00a0<a href=\"mailto:bcl@fmc.gov\">bcl@fmc.gov<\/a><\/p>\n<p><strong>Agreements, Carrier Rates, Service Contracts, and Tariffs<\/strong><\/p>\n<p>Phone: 202-523-5796<\/p>\n<p>E-mail:\u00a0<a href=\"mailto:tradeanalysis@fmc.gov\">tradeanalysis@fmc.gov<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ocean Transportation Intermediaries Ocean Transportation Intermediaries (OTIs) are either Ocean Freight Forwarders or Non-Vessel-Operating Common Carriers and are regulated by the FMC pursuant to the\u00a0Shipping Act of 1984. An\u00a0Ocean Freight Forwarder (OFF)\u00a0is an individual or company located in the U.S. which: arranges cargo movement to an international destination dispatches shipments... <a class=\"read-more\" href=\"\/industry-advisory-requirement-to-maintain-accurate-information-on-fmc-form-fmc-1\/\">Read More »<\/a><\/p>\n","protected":false},"author":7,"featured_media":0,"parent":2050,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.fmc.gov\/wp-json\/wp\/v2\/pages\/2226"}],"collection":[{"href":"https:\/\/www.fmc.gov\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.fmc.gov\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.fmc.gov\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fmc.gov\/wp-json\/wp\/v2\/comments?post=2226"}],"version-history":[{"count":13,"href":"https:\/\/www.fmc.gov\/wp-json\/wp\/v2\/pages\/2226\/revisions"}],"predecessor-version":[{"id":8255,"href":"https:\/\/www.fmc.gov\/wp-json\/wp\/v2\/pages\/2226\/revisions\/8255"}],"up":[{"embeddable":true,"href":"https:\/\/www.fmc.gov\/wp-json\/wp\/v2\/pages\/2050"}],"wp:attachment":[{"href":"https:\/\/www.fmc.gov\/wp-json\/wp\/v2\/media?parent=2226"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}