An Ocean Transportation Intermediary (OTI) bond is a type of financial security that is required by the Federal Maritime Commission (FMC) for certain companies that operate in the international ocean transportation industry. OTI bonds are specifically required for Ocean Freight Forwarders (OFFs) and non-vessel-operating common carriers (NVOCCs), which are companies that arrange for the transportation of goods by ocean carrier on behalf of shippers, but do not own or operate the vessels themselves.

The purpose of an OTI bond is to provide financial protection for shippers and other parties in the event that an OFF or NVOCC fails to fulfill its obligations or causes financial loss. OTI bonds are intended to ensure that these companies have the financial resources to meet their obligations and to provide compensation for any losses that may occur.

To obtain an OTI bond, a company must submit an application and pay a fee to a surety bond company, which will then issue the bond. The bond amount is typically based on the company’s estimated annual gross transportation revenue and may range from $75,000 to $150,000. The bond remains in effect for a specific period of time, usually one year, and must be renewed on an annual basis.