FMC License for Ocean Freight Forwarders

DPI has helped hundreds of companies offering ocean freight forwarding services obtain and maintain U.S. Federal Maritime Commission (FMC) licenses. 

  • 100s of FMC Applications Approved 
  • 45 Years of Experience
  • Expert Licensing Team
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Our expert staff is ready to assist companies seeking to offer freight forwarding services in the U.S. ocean trade lanes as Ocean Freight Forwarders (OFFs).

 

We offer Members the following services:

1000s of FMC Applications Approved

FMC License Application Handling for OFFs

Companies based in the US seeking to offer ocean freight forwarding services from the US under their own name must obtain an Ocean Freight Forwarder (OFF) license from the U.S. Federal Maritime Commission. This license is only available to companies with an office and staff in the US. 

OFFs are different from NVOCCs in that they only arrange for ocean freight as agents of their shipper customers. They do not hold themselves out as ocean carriers 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.

DPI has assisted hundreds of companies successfully apply for and obtain OFF licenses from the U.S. Federal Maritime Commission (FMC).

The application process includes detailed reporting of your company’s organizational structure and management. Every OFF must employ at least one company officer as a Qualifying Individual (QI) for FMC licensing purposes. The QI must have no less than three years of experience processing freight shipments in the U.S. ocean trade lanes. Our experts are familiar with all aspects of QI requirements and company documentation. We will assist you in preparing all needed reporting.

Once your application is prepared, we will handle submission and follow through with the FMC’s Licensing Bureau. Most applications handled by DPI are approved within 60 days.

For this service, we bill an hourly rate of US$ 60. Most applications require 12 hours of staff time. Please be advised that an application fee of US$ 250 must be submitted to the FMC with each new application.

Qualifying Individual (QI) Replacement

U.S. Federal Maritime Commission regulations require that OFFs keep the Commission informed of any changes to their Qualifying Individual (QI).

Should the QI no longer serve as an officer and employee of the OFF, the OFF must replace the QI within 30 days. Failure to do so may result in revocation of the OFF’s license or a monetary penalty.

DPI can help prepare your QI replacement license application. Our expert staff will help review your proposed QI to ensure that they meet the experience and background qualifications required by the FMC. We will also handle follow up with the FMC’s Bureau of Licensing should there be any questions.

For this service, we bill an hourly rate of US$ 60. Most license applications for Qualifying Individual (QI) replacement require 12 hours of staff time. Please be advised that an amendment fee of US$ 125 must be submitted to the FMC with each new application.

License Renewals & Updates

U.S. Federal Maritime Commission regulations require that OFFs keep the Commission informed of changes in their business information, such as address, telephone number, organizationa’ structure, related entities, legal name, trade name, shareholders / directors / officers, and branch offices.

Updates must be reported to the Commission within 30 days.

The FMC has also recently instituted a new renewal policy which requires OFFs to renew their license or registration every three years. 

DPI can help prepare your update or renewal to ensure smooth sailing when reporting any changes to the FMC. Our expert staff will help prepare all required documentation, and will also handle follow up with the FMC’s Bureau of Licensing should there be any questions.

With DPI’s assistance you can be sure that your update will be in order. We charge US$ 150 for license update and renewal handling.

FMC Bonds for OFFs

U.S. Federal Maritime Commission (FMC) regulations require that all Ocean Freight Forwarders (OFFs) maintain proof of financial responsibility. Most OFFs satisfy this requirement by obtaining an OFF Bond.

Licensed OFFs must maintain a bond in the amount of US$ 50,000.

DPI is happy to recommend insurance agents and sureties qualified to handle your OFF bonding requirements.

Our staff will coordinate with you and your bond agent to expedite all paperwork required to obtain speedy approval, so that you may begin operating as an OFF as soon as possible.

Frequently Asked Questions

The answers below are intended for informational purposes only. To view the FMC’s regulations as issued in the U.S. Code of Federal Regulations, please click here.

FMC License for Ocean Freight Forwarders

Can an Ocean Freight Forwarder charge mark up on ocean freight?

My company is based outside the US. Do I need an Ocean Freight Forwarder license?

What is the difference between an Ocean Freight Forwarder (OFF) and a Non-Vessel-Operating Common Carrier (NVOCC)?

Can an Ocean Freight Forwarder earn a Forwarder Commission from an Ocean Carrier?

Is it possible to obtain a license for both Ocean Freight Forwarder (OFF) and Non-Vessel-Operating Common Carrier (NVOCC)?

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