If you're shipping something overseas, you must be familiar with the role of the Federal Maritime Commission in ocean shipping. This guide will help you understand what an FMC is, understand its history, and determine its role in maritime shipping.
What is FMC?
First, what does FMC stand for? The acronym FMC refers to the Federal Maritime Commission, which was established in 1961 as a regulatory agency for 4 liner shipping groups and U.S. importers and exporters.
Although the FMC acronym was not adopted until August 12, 1961, its origins date back to the First World War. The Kennedy administration worked with Congress to create the Federal Maritime Commission so they could create regulations for maritime activities. shipping company.
The goal is to separate the governing bodies that oversee the U.S. merchant fleet and international shipping companies. The latter is now administered by the FMC and aims to regulate U.S. marine commerce.
The role of FMC in shipping
As you can see, the FMC, the Federal Maritime Commission, plays an important role in ocean shipping. Their mission is to ensure a competitive and reliable international maritime supply system that not only supports the U.S. economy but also protects the public from any deceptive or unfair practices.
Since its inception, FMC has adapted to all changes related to international shipping. They have been working to create a fair and efficient environment for exporters and importers while protecting the American public.
To accomplish this mission, they regulate the activities of Ocean Transportation Intermediaries (OTIs), which include ocean freight forwarders and NVOCCs.
Licensing Requirements
The FMC has specific licensing requirements. All OTIs must be licensed before performing any services in the United States. This licensing requirement means that if a company wants to buy or sell ocean freight services — whether to or from the U.S. — they must register with the Federal Maritime Commission.
If the agent is not licensed or registered with the FMC, they cannot use their ocean freight services, or any NVOCC services, in the United States. These unlicensed agents can only act as booking agents or freight forwarders.
Fees and Penalties
The Federal Maritime Commission reserves the right to assess fees and fines imposed by its regulatory agency. These penalties can be assessed if there are irregularities related to fees charged to customers and compensation received by ocean carriers from carriers.
The Federal Maritime Commission (FMC), as the regulator of maritime transport, ensures that the system is fair and competitive, while protecting the public from any unfair practices. They have licensing requirements and regulations that they must follow. Otherwise, they reserve the right to assess fees and fines.
