The FEDERAL MARITIME COMMISSION - FMC revokes licenses, provisional licenses and order to discontinue operations in U.S. - foreign trades of 52 Ocean Transportation Intermediaries - "OTIs" for failure to comply with the new licensing and bonding requirements of the Ocean Shipping Reform Act of 1998.

Effective May 1, 1999, the OTI was created as part of the OSRA reforms. The term "OTI" is defined to include both ocean freight forwarders and non-vessel-operating common carriers ("NVOCCs"). As part of the OSRA amendments, NVOCCs operating in the United States must obtain a license. They must also file proof with the Commission that they have increased their financial responsibility from $50,000 to $75,000 (plus $10,000 for each unincorporated branch office) in accordance with the new regulations, and a Form FMC-1 indicating the location of their tariffs which they must publish in an electronically accessible automated tariff system.

Freight forwarders' obligations were also affected by the enactment of OSRA. Although they continue to maintain their existing licenses, they are now required to increase the amount of their financial responsibility on file from $30,000 to $50,000 (plus $10,000 for each unincorporated branch office) and file proof of the increase with the Commission.

The Order identified, in Schedule A, the freight forwarders which had not yet increased their financial responsibility under the Commission's implementing regulations; in Schedule B, the NVOCCs which had not yet applied for an OTI license, provided proof of increased financial responsibility, or filed a Form FMC-1; in Schedule C, OTIs which had failed to meet both the new freight forwarder and NVOCC requirements;(1) and in Schedule D, a single foreign-domiciled NVOCC which had failed to increase the amount of its financial responsibility on file from $50,000 to $150,000.

Copy of the FMC ruling with full detail of forwarders and NVOCC involved is available at:

http://www.fmc.gov/Dockets/00-12%20Revocation.htm