FMC TARGETS 81 OTIs FOR FAILURE TO POST INCREASED BONDS
Eighty-one ocean transportation intermediaries face the possibility of losing their licenses to operate in the U.S. foreign trades for failing to post increased bonds required by the Ocean Shipping Reform Act.
The FMC cited 20 freight forwarders for failing to increase their proof of financial responsibility from $30,000 to $50,000, plus $10,000 for each unincorporated branch office.
The commission also cited 53 non-vessel-operating common carriers for failing to increase the bonds from $50,000 to $75,000, plus $10,000 for each unincorporated branch office.
An additional seven firms operating as both forwarders and NVOs were cited by the FMC for failing to meet both forwarding and NVO bonding requirements.
One non-U.S. based NVO was cited by the FMC for failing to increase its bond from $50,000 to $150,000 and for failing to indicate the location of its electronically published tariff.
None of the firms have been issued new licenses by the FMC.
Firms which want an FMC hearing must make such a request to the agency by Feb. 12.
The parties were asked to file papers explaining why the FMC should not revoke their licenses for failing to comply with the new OSRA bonding requirements.
A final FMC ruling will be handed down by August 13.