BlogSimpliship Updates for Shippers, NVOCCs, and Freight Forwarders


FMC Licensing and Its Role in International Shipping

The Federal Maritime Commission (FMC) regulates the U.S. international ocean shipping system. They audit contracts among international ocean carriers serving the United States for unfair practices or any arrangements that would adversely affect the cost of shipping. By instituting tariffs, the FMC helps to regulate shipping costs, so Non-Vessel-Operating Common Carriers (NVOCC) set prices fairly. The FMC intercedes when foreign governments or private businesses create undesirable conditions on U.S. shipping trades. They provide a place where they resolve shipping disputes by investigating and making rulings on legitimate complaints.

Freight forwarders and NVOCC's should obtain a FMC license.

The Shipping Act of 1984 prohibits individuals from acting as ocean transportation emissaries without a FMC license. When these companies have a FMC license, they show their customers and clients validation of conducting their business legally. Clients feel secure knowing the company they work with is under heavy regulation and can be held accountable through official channels. Another advantage for freight forwarders and NVOCC's who hold a license is the security knowing they can voice their complaints to a governing agency that will take action on their behalf. Because the FMC has these channels, the advantage of licensing through the FMC provides protection to all freight forwarders and NVOCC's.

The Federal Maritime Commission provides the U.S. international shipping system with much-needed administration. They protect the financial interests of the U.S. and its importers and exporters. Getting a FMC license for freight forwarding is essential in conducting business legally and securely while trading outside the United States.