§40902 Financial Responsibility

Summary

You may not advertise, call yourself, or work as an ocean transportation intermediary (a company that arranges ocean shipments) unless you provide a bond, insurance, or other financial guarantee. The Federal Maritime Commission decides the kind and amount of that guarantee to make sure you can pay. The guarantee must come from a surety company that the Secretary of the Treasury accepts. If you are not based in the United States, you must name a U.S. resident agent to receive legal papers and subpoenas. The guarantee must cover penalties under section 41109 and reparations under section 41305. It can also pay claims against the intermediary for transportation-related activities if the company agrees and the surety reviews it, or if the company ignores proper notice and the surety finds the claim valid. If a claimant first tries to settle a claim this way and it is not fixed in a reasonable time, the guarantee must cover any court judgment for damages that come from the intermediary’s transportation activities. The Commission must make rules to protect claimants, intermediaries, and sureties, and to ensure a money judgment only covers damages tied to the intermediary’s transportation work as the Commission defines.