FMC License for Ocean Freight Forwarders
Can an Ocean Freight Forwarder charge mark up on ocean freight?
OFFs must be prepared to provide shippers with a detailed breakout of all charges and underlying ocean freight bills upon request. The below notice is required on all OFF invoices.:
“Upon request, we shall provide a detailed breakout of the components of all charges assessed and a true copy of each pertinent document relating to these charges.”
Ocean Freight Forwarders typically charge their shipper customers a forwarder fee or documentation fee for preparing shipping documentation.
To learn more about DPI’s services for OFFs, click here. DPI Members may learn more about OFFs on the DPI Knowledge Center.
My company is based outside the US. Do I need an Ocean Freight Forwarder license?
No. FMC’s Ocean Freight Forwarder regulations only apply to companies based in the US that dispatch shipments from the US.
To learn more about DPI’s services for OFFs, click here. DPI Members may learn more about OFFs on the DPI Knowledge Center.
What is the difference between an Ocean Freight Forwarder (OFF) and a Non-Vessel-Operating Common Carrier (NVOCC)?
Ocean Freight Forwarders (OFFs) in the US are different from Non-Vessel-Operating Common Carriers (NVOCCs). OFFs only arrange for ocean freight on behalf of their shipper customers. They do not hold themselves out as an ocean carrier and do not issue their own bills of lading.
OFFs are prohibited from entering into Service Contracts with Vessel-Operating Ocean Carriers and must provide underlying ocean freight bills to shippers along with a detailed breakout of all charges upon request. OFFs typically charge their shipper customers forwarder fees or documentation fees for preparing shipping documentation. OFF may also earn forwarder commissions from ocean carriers.
To learn more about DPI’s services for OFFs, click here. DPI Members may learn more about OFFs on the DPI Knowledge Center.
Can an Ocean Freight Forwarder earn a Forwarder Commission from an Ocean Carrier?
Yes, Ocean Freight Forwarders may earn forwarder commissions from ocean carriers. Non-Vessel-Operating Common Carriers and cargo owners may not earn forwarder commissions from ocean carriers.
OFFs must certify that they have performed forwarding services prior to receiving commissions from VOCCs and NVOCCs.
To learn more about DPI’s services for OFFs, click here. DPI Members may learn more about OFFs on the DPI Knowledge Center.
Is it possible to obtain a license for both Ocean Freight Forwarder (OFF) and Non-Vessel-Operating Common Carrier (NVOCC)?
Yes, it is possible to obtain an FMC license for both Ocean Freight Forwarder and Non-Vessel-Operating Common Carrier services.
If your organization is based in the US and will offer both types of services, you may apply for both licenses at the same time. Click here to learn about our services for NVOCCs or contact DPI.