Yes. The Federal Maritime Commission (FMC) allows a group or association of Ocean Transportation Intermediaries (OTIs) to submit a group bond or other acceptable group financial responsibility instrument, subject to the applicable requirements.
This can be relevant to logistics groups that operate several NVOCC companies or other OTI entities in U.S. foreign trade.
The FMC provides two relevant bond forms:
Form FMC-48: Individual OTI bond.
Form FMC-69: OTI Group Bond.
The key difference is that an individual bond covers the specified OTI, while a group bond is designed to cover the OTIs identified as members of the group.
However, companies cannot simply assume that sharing a parent company, brand name or office means they are covered by one bond. The group must accept the applicable financial responsibility, clearly identify each covered OTI, and satisfy the FMC's requirements.
Official sources:
Navigator International supports foreign freight forwarders and NVOCCs with FMC qualification applications, NVOCC bond handling and related U.S. ocean trade compliance services.
International logistics groups sometimes operate several legal entities for different markets or business functions.
For example, a group may have:
A Hong Kong NVOCC
A Singapore NVOCC
A Vietnam NVOCC
A separate company serving customers in India
Additional entities handling different customer segments
If multiple entities independently provide NVOCC services in U.S. foreign trade, each entity's applicable FMC requirements must be reviewed.
A group may want to explore a Group Bond to coordinate financial responsibility across its participating OTIs.
Potential considerations include:
How many OTI entities are involved
Whether the entities qualify to participate in the proposed group structure
Whether the group can accept liability for its members' covered transportation-related activities
The total required financial responsibility
Surety underwriting and pricing
How member additions and removals will be managed
A Group Bond may simplify the administration of financial responsibility for a properly structured group. However, it does not automatically reduce the bond premium or eliminate the need to review each member's regulatory status.
The FMC identifies Form FMC-48 as the individual OTI bond form and Form FMC-69 as the OTI Group Bond form.
| Item | Individual Bond — FMC-48 | Group Bond — FMC-69 |
|---|---|---|
| Coverage structure | Individual OTI | Identified group or association of OTIs |
| Main applicant structure | A specified OTI | A group or association accepting financial responsibility |
| Covered entities | The OTI identified in the instrument | The OTIs identified in the group bond and applicable schedules |
| Financial responsibility | Based on the individual OTI category | Calculated under the group financial responsibility rule |
| Adding or removing companies | Requires the applicable individual bond arrangements | FMC states that members are added or cancelled through schedules filed to the group bond |
| Best starting point | A company operating independently | A group evaluating consolidated financial responsibility |
The appropriate structure depends on the company's regulatory status, corporate organization and financial responsibility arrangements.
Official source: FMC — Forms and Applications
The applicable amount depends on the regulatory category of each OTI in the group.
The FMC currently specifies the following general amounts:
| OTI Category | Required Financial Responsibility |
|---|---|
| Ocean freight forwarder | $50,000 |
| U.S.-based NVOCC | $75,000 |
| Licensed non-U.S.-based NVOCC | $75,000 |
| Registered non-U.S.-based NVOCC without an FMC-issued license | $150,000 |
Under 46 CFR § 515.21(b), a group must establish financial responsibility equal to the lesser of the total amount required for its members under § 515.21(a) or $3,000,000 in aggregate.
In practical terms, the required amount is calculated using the applicable financial responsibility amount for each member, subject to the aggregate cap.
Suppose a group has two foreign-based registered NVOCCs, neither holding an FMC-issued license.
Each generally requires $150,000 in financial responsibility.
The combined requirement would be:
$150,000 × 2 = $300,000
The group should assess whether a Group Bond is suitable for its structure and whether the surety will underwrite the proposed arrangement.
Suppose a group has four foreign-based registered NVOCCs, each requiring $150,000.
The combined requirement would be:
$150,000 × 4 = $600,000
The group should compare the administrative and commercial implications of a Group Bond against separate individual bonds.
If the sum of the applicable financial responsibility amounts for all members exceeds $3,000,000, the regulation caps the group requirement at $3,000,000 in aggregate.
This cap should not be interpreted as meaning that any group can simply purchase a $3 million bond and automatically cover any number of entities. The group must still satisfy the applicable requirements, identify its covered OTIs and establish the appropriate financial responsibility instrument.
Official source: 46 CFR § 515.21 — Financial Responsibility Requirements
Not automatically.
Common ownership can be relevant when assessing the proposed group structure, but sharing a parent company or trade name alone does not establish that the FMC has accepted one bond for every affiliate.
The group must be properly structured under the applicable rules, accept the relevant financial responsibility, and file an instrument that clearly identifies every covered OTI.
Before applying, a logistics group should prepare:
The legal name of each participating OTI
Each entity's FMC registration or license status
The applicable OTI category
Each member's required financial responsibility amount
The proposed group structure
The surety's underwriting requirements
The required member schedule
The FMC also states that when multiple persons operate under a common trade name, separate proof of financial responsibility is required to cover each corporation or person separately providing OTI services. A properly structured group bond may be relevant, but the companies should not assume that the shared trade name itself provides coverage.
A group bond must accurately identify the OTIs it covers.
The FMC states that members are added to and cancelled from Form FMC-69 through schedules filed to the bond.
For a logistics group planning to add a new foreign NVOCC, the process should therefore include:
Confirming the new company's legal identity.
Determining whether the company will operate as an NVOCC in U.S. foreign trade.
Reviewing its FMC registration or license requirements.
Confirming the financial responsibility amount that applies to it.
Coordinating the required addition to the group bond.
Confirming that the applicable FMC requirements are satisfied before the company provides regulated OTI services.
A company should not assume that it is covered merely because it has become an affiliate or has started using the group's trade name.
A member's departure also requires careful handling.
The FMC states that members are added and cancelled from Form FMC-69 by schedules filed to the bond.
Before removing a member, the group should review:
Whether the entity will continue providing OTI services
Whether it will obtain its own individual bond or another acceptable financial responsibility instrument
Whether the member's removal has been properly documented
Whether its FMC registration or license remains compliant
Whether the surety and the group have completed the required steps
Removing a member from a group bond should not be treated as a simple internal corporate decision.
If the departing company will continue operating as an NVOCC, it must ensure that its own financial responsibility requirements are satisfied.
No.
A Group Bond may provide administrative advantages for some logistics groups, but cost savings are not guaranteed.
The surety may consider factors such as:
The number and type of OTIs covered
The financial profile of the group
The operating history of its members
The total required financial responsibility
The surety's underwriting standards
The commercial terms of the proposed instrument
The group should compare quotations for the actual proposed structure rather than assuming a Group Bond is always cheaper.
It should also consider the administrative implications of adding or removing entities and maintaining accurate membership records.
A practical decision framework is:
Consider individual bonds when:
Each NVOCC operates independently.
Each company prefers separate financial responsibility arrangements.
The group has limited coordination between entities.
The companies want their bond arrangements managed independently.
Consider evaluating a Group Bond when:
Several OTIs belong to a coordinated group or association.
The group is prepared to accept the applicable financial responsibility.
The participating entities can be clearly identified.
The surety is willing to underwrite the proposed arrangement.
The group has a reliable process for member additions, cancellations and record updates.
Neither structure is automatically better. The correct choice depends on the entities involved, the applicable financial responsibility requirements and the commercial terms offered by the surety.
