Setting Up a New Ocean Carrier or NVOCC or Freight Forwarder

Start ups seem to be the focus of our upcoming election and also the regs and requirements for these start ups are at issue nationally. So, if you want to start an Ocean Carrier or NVOCC-FF business, there are several steps at a minimum that need to be completed in order for you to start operations.

Now, a bit of background here. ARTEMUS Transportation Solutions has helped start up 5 NVOCC-FF businesses over the last two years and 2 OCEAN CARRIERS during that time plus we are working with a third Master Carrier right now. So, that's the experience that goes with the entry you are reading. There are several details that are required beneath many of these steps but these basic steps are "required" parts of the process. So, here goes.....

First, what's in a name? What's the name of the company? Do you have your organization set up in the US as a corporation, LLC etc.?  If so, please obtain an EIN Number. This is required down the road.   With your company name, you also need a company contact or key person to represent your company in this process.  This name will be listed with the FMC and used when publishing your application to the public through the Federal Register.

Next, have financials available. If this is a company that already exists but is now looking to get into the US Market, your financial performance and corporate profile will be critical in many parts of the process.

Identify, what will you do? Are you a Master Carrier, Freight Forwarder or NVOCC? Let's get that SCAC for your company

Go to www.nmfta.org and apply for your Standard Carrier Alpha Code (SCAC). A letter is issued to you within 24-48 hours. This four digit identifier is used in so many areas.

Then, contact a bond or surety company and apply for your Type 3 Carrier Bond or continuous bond. The bond company can provide you with details on which would better suit your business.

Pick a Tariff Publishing Company to help you set up the publishing of your tariff. This applies more to the Master Carrier...could apply to the NVOCC and depending on your operation, might apply to the FF. Each case is different as we have found out.

For the Master Carrier, you need to start by going to the FMC Website and complete a FMC FORM-1. During this form filling out process, you will need to identify who will publish your tariff for you. There are several tariff filing companies available and you can usually get recommendations, based on what you are looking for.

For the NVOCC and Freight Forwarder, you need to get an FMC License. If you apply online, the cost is a third of what it would be if you print the application out and mail it in. This is also done through the www.FMC.gov website

Then, of course, you will need to set up filing your imports through AMS and ISF.  This is the company who can help you with this and teach you how to file your own shipments....ARTEMUS Transportation Solutions.

NEXT BLOG - So, now we have our tariff publishing company, our SCAC, our FMC License or Form 1 filled out, we have our bond, company name, corporation set up, and we are ready to go. Now, do you have your bill of lading set up and completed? What about your customer experience? Customer Service, Documentation process, managing containers, shipments etc. Do you have a shipment management system?

Check back later this month for the next steps in the process of How to Set Up a Master Carrier or NVOCC-Freight Forwarder. Until then.....

ARTEMUS OUT!