OTI
Ocean Transportation Intermediary (OTI)
WHAT IS AN OTI?
- OTI stands for Ocean Transportation Intermediary. A freight intermediary (also known as an OTI or Ocean Transportation Intermediary) is someone that assists an exporter or an importer in securing the best freight rates possible while providing the quickest routing for their cargoes and also preparing and processing the documents related to these shipments.
- An OTI is regulated by the FMC (Federal Maritime Commission) in accordance with the Shipping Act of 1984. Freight forwarders and/or NVOCCs fall in the category of OTI, although both play different roles.
- If the OTI is based in the USA, they can operate as freight forwarders or NVOCC only after obtaining an operating license from the FMC. Non-USA OTIs are not required to obtain an FMC license, but it is recommended.
Definitions Of The OTIs.
- A Freight Forwarder is a multi-function agent/operator who arranges the movement of goods from point A to point B on behalf of a BCO (Beneficial Cargo Owner).
- Apart from arranging the movement, a freight forwarder also prepares and processes the documentation and performs all activities related to the safe movement of goods using a NVOCC or a VOCC using either their service contract or the BCO’s service contract.
- FMC has a whole regimen regarding OTIs applying for licenses to operate in the USA.