Transportation Bonds


Let Avalon help you fulfill your bond obligations.

OTI Bonds

The Federal Maritime Commission (FMC) requires that Ocean Freight Forwarders (OFF) and Non-Vessel Operating Common Carriers (NVOCCs) who handle cargo to or from the US must be licensed and bonded as Ocean Transportation Intermediaries (OTIs).

The OTI bond provides proof of financial responsibility that guarantees compliance with the Ocean Shipping Reform Act, FMC regulations and contractual obligations with shippers and carriers

Bonding Requirements

US OFF: Bond $50,000

US NVOCC: Bond $75,000

Non-US Domiciled, unlicensed NVOCC: Bond $150,000*

Please note that if a corporate entity has both an OFF and NVOCC operation, the FMC can issue one license, however separate bonds are required.

Photo of a semi truck front, semi trick back and inside of a semi truck with driver

Property/Freight Broker and Domestic Surface
Freight Forwarder Bonds

The Federal Motor Carrier Safety Administration (FMSCA) requires that all Property/Freight Brokers and Domestic Surface Freight Forwarders obtain a surety bond in the amount of $75,000. This bond (i.e. the BMC-84) guarantees payment to shippers and motor carriers if the broker fails to remit payment for services rendered.

Please note that if a corporate entity has both a Property Broker and Freight Forwarder authority issued in the same name, the FMCSA will only require one $75,000 bond.


SDDC Bonds

Transportation providers moving goods for the Department of Defense (DOD) are required to secure a Surface Deployment and Distribution Command (SDDC) bond to secure their operations.

SDDC bonds guarantee that carriers will perform their contractual obligations to deliver tendered freight. It will respond to situations where DOD freight is not delivered as a result of  abandoned shipments, default or bankruptcy of the transportation provider.


Military Truck on the road driving


Custodial Bonds (Customs C2 and C3 Bonds)

  • Bonded Carriers
  • Bonded Warehouses
  • Centralized Freight Stations
  • International Carrier Bonds

C2 Custodial bond are required by US Customs for operations that transport or warehouse cargo that is still "in-bond" which has not been entered into the commerce of the United States nor duties paid. The bond amount is based on the type of activities you are required to bond and is subject to the Port Director's discretion.

Foreign Trade Zone Bonds (Customs C4)

A bond required by US Customs that guarantees the operation of a Foreign Trade Zone (FTZ) and guarantees that the operator will comply with CBP regulations. The minimum bond amount is $50,000 but is subject to the Port Director's discretion based on the application.


Let us help you with your Transportation bond needs.

Download Bond Application