What is FMC in freight forwarding?

What is FMC in freight forwarding?

The Federal Maritime Commission (FMC) is an independent U.S. agency responsible for regulating foreign and inter-coastal ocean commerce shipping via U.S. ports. The FMC regulates both VOCCs (Vessel Operating Common Carriers) and NVOCCs (Non-vessel Operating Common Carriers).

What is FMC registration?

FMC registration is mandatory for any carrier operating services in USA.. The relationship or common factor between these two is the shipment itself as without the SCAC Code or an FMC registration, cargo cannot be imported into the USA..

Why do we need FMC?

The FMC was created to ensure that the American exporters, importers, and consumers were protected from unfair costs which may arise from the activities of liner shipping and other foreign government laws and regulation.

What is FMC compliance?

The Federal Maritime Commission (FMC) is an independent federal agency responsible for regulating the U.S. ocean transportation system for the benefit of U.S. exporters, importers and the U.S. consumer.

Who files FMC?

Who files an FMC tariff? Anyone operating seaborne and associated services to/from the USA must file a tariff.

What is FMC bond?

What Are Maritime Commission Bonds? The Federal Maritime Commission (FMC) requires every U.S.-based ocean freight forwarder (OFF) or non-vessel-operating common carrier (NVOCC) to obtain a surety bond generically known as an Ocean Transportation Intermediary (OTI) bond in order to become licensed.

How can I get FMC license?

How to Apply for an FMC OTI License?

1. Step 1: Determine the type of license the company needs depending on your requirements.
2. Step 2: Establish or confirm your corporate identity (sole proprietor, LLC, or Corporation).
3. Step 3: Appoint a qualifying individual (QI) with at least 3 years of verifiable OTI experience.

What is the full form of FMC?

At this time the company changed its name to Food Machinery Corporation, and began using the initials FMC. In 1948, the company name changed again, to Food Machinery & Chemical Corporation. In 1961, Food Machinery & Chemical Corporation was changed to simply FMC.

How can I become a freight forwarder in India?

Freight forwarders need to get registered with International air Transport Association (IATA) and Air Cargo Agent Association of India (ACCAI). It is also necessary to be a part of industry forums such as the Institute of Logistics so that issues raised to logistics industry may be raised.

What does HBL stand for in logistics?

House Bill of Lading Vs. Master Bill of Lading. The main difference between the HBL and MBL is that an HBL is issued by an NVOCC (or freight forwarder) and usually lists the actual shipper and consignee, whereas, the MBL is issued by the carrier.

Why are NVOCCs so popular?

NVOCC’s give you more flexibility with rates. Much of this has to do with the established networks and relationships maintained by NVOCC’s who are often able to get fixed, or low rates on batches of shipments. Utilizing an NVOCC for this purpose can reduce your costs.

How does NVOCC benefit new exporters?

The NVOCC purchases large blocks of space at a discounted rate from shipping lines and resells them in smaller blocks to other shippers. The NVOCC consolidates and transports shipments under a single bill of lading.

What does FMC stand for in shipping?

About the Federal Maritime Commission. The Federal Maritime Commission (FMC) is the independent federal agency responsible for regulating the U.S. international ocean transportation system for the benefit of U.S. exporters, importers, and the U.S. consumer.

Who controls international shipping?

Key Takeaways. The International Maritime Organization is an agency tasked with improving the security and safety of international shipping. One of its key duties is to devise strategies and measures to keep the waterways clean by preventing marine pollution from ships.

How do I report to FMC?

Ocean shipping or cruise complaints (Please contact the Office of Consumer Affairs and Dispute Resolution Services at [email protected]) Formal complaints to allege violations of the Shipping Act (Please visit https://www.fmc.gov/resources-services/filing-a-formal-complaint/ for more details)

What is service contract in shipping?

Service Agreement or Service Contract – Agreement between a shipper and a liner conference in which the shipper undertakes to ship some or all, as the case may be, of his cargo on conference line ships for a specific period of time in return for an agreed rate of freight and level of service.