Regulatory Compliance & Standards

Ocean Freight Compliance

Understanding the regulatory framework governing ocean freight transportation, including federal licensing, security standards, and international maritime law.

FMC Requirements

The Federal Maritime Commission (FMC) regulates Ocean Transportation Intermediaries (OTIs), including NVOCCs and Ocean Freight Forwarders operating in U.S. commerce.

Federal Regulation

C-TPAT Program

The Customs-Trade Partnership Against Terrorism (C-TPAT) is a voluntary program that strengthens cargo security and supply chain integrity for importers.

CBP Program

ISO Standards

ISO 9001:2015 quality management standards apply to logistics providers, ensuring consistent service delivery and continuous improvement processes.

Quality Management
Federal Maritime Commission

FMC Regulatory Compliance

All Ocean Transportation Intermediaries must comply with Federal Maritime Commission regulations, the Shipping Act of 1984 (as amended by OSRA 1998), and 46 CFR Part 515 requirements for licensing, bonding, and tariff publication.

NVOCC Standards

Meeting Non-Vessel Operating Common Carrier requirements for ocean transportation services

• $75,000 Surety Bond

• Published Tariff Required

• Service Contract Authority

Ocean Freight Forwarder

Arranging transportation of cargo and providing logistics services on behalf of shippers

• $50,000 Surety Bond

• Freight Forwarding Authority

• Documentation Services

Financial Responsibility

OTIs must maintain required surety bonds and proof of financial responsibility per 46 CFR § 515.21

• Continuous Bond Coverage

• Annual Renewal

• Claims Protection

Shipping Act of 1984 (As Amended by OSRA 1998)

The Shipping Act governs the operation of common carriers and ocean transportation intermediaries in U.S. foreign commerce. All OTIs must adhere to the provisions of this legislation.

46 U.S.C. § 40901-40904 - NVOCC Responsibilities

  • Establish, observe, and enforce just and reasonable rates and charges
  • Publish tariffs showing all rates and charges (46 CFR Part 520)
  • Enter into service contracts with shippers
  • Maintain financial responsibility and surety bonds
  • Comply with all FMC reporting requirements
  • Prohibit unjust discrimination or undue preference

46 CFR Part 515 - Licensing Requirements

  • Obtain and maintain valid FMC OTI license
  • Submit Form FMC-18 (License Application)
  • Provide qualifying individual information
  • Demonstrate business competency and integrity
  • Report changes to business information within 30 days
  • Maintain records for 5 years from contract termination

46 CFR Part 520 - Tariff Publication Requirements

As required by law, all NVOCCs must publish and maintain tariffs showing rates, charges, classifications, rules, and practices applicable to ocean transportation services.

Tariff Content Requirements:

  • All applicable rates and charges
  • Service terms and conditions
  • Rules of general applicability
  • Commodity classifications
  • Port pairs and service routes
  • Container specifications and limitations
  • Payment terms and conditions
  • Free time and detention policies

Publication Standards:

  • Published electronically in accessible format
  • Available for public inspection
  • 30-day notice for rate increases
  • Immediate filing for rate decreases
  • Organized location filing (Form FMC-1)
  • Updated within 24 hours of changes
  • Maintained for duration of service
  • Archived for 5 years after termination

46 CFR Part 530 & 532 - Service Contracts & NRA Regulations

NVOCCs may enter into confidential service contracts and Negotiated Rate Arrangements (NRAs) with shippers, subject to FMC filing requirements.

Service Contract Authority:

  • Negotiated rates below tariff rates
  • Volume commitments from shippers
  • Specified service levels
  • Exclusive dealing provisions
  • Confidential filing with FMC
  • Essential terms only disclosed

NVOCC Service Arrangements:

  • Individual NSAs with shippers
  • Minimum volume commitments
  • Time-definite obligations
  • Performance incentives/penalties
  • Electronic filing within 24 hours
  • 5-year record retention

Prohibited Practices:

  • No unjust discrimination
  • No unreasonable refusal to deal
  • No retaliation against shippers
  • No false or misleading information
  • No fighting ship practices
  • No predatory pricing

Additional U.S. Regulations

  • U.S. Customs and Border Protection (CBP) - Registered Importer
  • Transportation Security Administration (TSA) - Cargo Security
  • Department of Transportation (DOT) - Safety Standards
  • ISF Filing and 10+2 Rule Compliance (19 CFR Part 149)
  • AMS (Automated Manifest System) Filing
  • ACI (Advance Commercial Information) Requirements

International Maritime Standards

  • IMDG Code Compliant (Dangerous Goods Handling)
  • SOLAS Convention (Safety of Life at Sea) VGM Requirements
  • ISPS Code (International Ship and Port Facility Security)
  • AEO (Authorized Economic Operator) Recognition
  • IMO 2020 Sulphur Regulation Compliance
  • MARPOL Environmental Protection Standards

Security & Insurance Standards

Data Security

Ocean freight platforms must use SSL encryption for data transmissions and comply with data protection regulations.

GDPRPCI DSS

Cargo Insurance

Shippers should ensure adequate cargo insurance coverage. Standard marine cargo policies cover loss or damage during transit.

All-RiskMarine Cargo

Surety Bonds

NVOCCs must maintain a $75,000 surety bond, while Ocean Freight Forwarders require a $50,000 bond per FMC regulations.

FMC BondOTI Requirement

Compliance Process in Ocean Freight

01

Documentation Review

Thorough review of all shipping documents for accuracy and compliance

02

Regulatory Checks

Verification against current regulations and trade restrictions

03

Security Screening

Advanced screening procedures for all shipments and partners

04

Continuous Monitoring

Real-time compliance monitoring throughout the shipping process

Anti-Corruption & Ethics in Shipping

International shipping companies are expected to maintain zero-tolerance policies toward corruption and bribery, conducting business with integrity and transparency across all operations.

  • FCPA Compliant (Foreign Corrupt Practices Act)
  • UK Bribery Act Compliant
  • Regular Ethics Training for All Staff
  • Anonymous Whistleblower Hotline
  • Third-Party Due Diligence
  • Annual Compliance Audits