Cargo Acceptance Restrictions  
       
 

As a NVOCC you are legally bound by the FMC Rules & Regulations. Consequently, you can only accept cargo for ocean shipment from the following parties:

  • Shipper/Consignee i.e. the present or future owner of the cargo.

  • Your Foreign Agent duly authorized to issue your House Bill of Lading. (U.S. Import).

  • Cargo Broker, if he owns the cargo at time of shipment.

  • A Co-Loading FMC OTI Licensed NVOCC or foreign-based NVOCC

  • FMC OTI Licensed Freight Forwarder

At times, a Cargo Broker can act as a shipper, if he acts as the owner of the cargo. If he acts on behalf of the interest of the shipper, the cargo cannot be accepted unless, the Cargo Broker utilizes a FMC OTI Licensed Freight Forwarder or NVOCC to tender the cargo.

It is imperative, that NO ocean cargo is accepted from an unlicensed freight forwarders i.e. a party which is not licensed by the FMC as an OTI Licensed Freight Forwarder. Any time, when a party claims himself as a Freight Forwarder, you are required to request a copy of his FMC OTI License and verify same via the FMC's Website at www.fmc.gov, where it should be included in the OTI Freight Forwarder listing. If the OTI number or the company name is not included in the list, it means that the said freight forwarder is not licensed anymore, as no $50,000 Bond is on file with the Federal Maritime Commission at the time of look-up. This list is updated on a weekly basis by the Federal Maritime Commission.

Remember, an OTI Freight Forwarder can claim commission only, if your Tariff Rule 9 Freight Forwarder Compensation so stipulates. Often such claims come later, so be sure that if you don't want to pay Freight Forwarder Compensation, to file a comment in your Rate Request like: "Rate is not subject to Rule 9 Freight Forwarder Compensation". By FMC Rules & Regulations, an OTI Licensed Freight Forwarder can only pass-on your tariff rate to his shipper/consignee, on which behalf he acts, as he is not allowed to increase your freight rate. This is the reason an OTI Licensed Freight Forwarder can claim Freight Forwarder Compensation from you.

  
 

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