AnalysisLicences and fraud · The check that matters
How do I know if a freight forwarder is legit, when 2 of 245 pages show a licence number
Legitimacy in this industry has a federal answer, and it is public. A company arranging ocean carriage for US cargo needs an ocean transportation intermediary licence or, if foreign-based and acting as an NVOCC, a registration. Both are searchable, free, without an account. Of the 245 pages SeaRates measured across the ranking clusters on 07/25-26/2026, 2 show an actual OTI number, 29 name a bond amount, and 4 point the reader at the database at all.
The check, in order
1. Get the entity name that issues the bill of lading. Not the brand on the website, not the salesperson's signature block. The bill of lading names the carrier for your shipment, and that is the name the register has to match.
2. Search it in the FMC OTI application, by company name and by trade name. One licensee can appear under several trade names, so a nil result on the brand is not a nil result on the company.
3. Read what came back. A licensed US entity shows a licence number. A registered foreign-based NVOCC shows no licence number and is still legitimately in the list. Absence from both lists, for a company arranging ocean carriage for US cargo, is the finding.
4. Match the address and the qualifying individual. A licence belongs to an entity at an address with a named qualifying individual behind it. A cloned site copies the number and not the rest.
What the licence proves, and what it does not
| The licence confirms | The licence says nothing about |
|---|---|
| Authority to arrange ocean carriage | Service quality |
| A bond of the stated category is posted | Solvency |
| A qualifying individual with experience | Whether your quote is complete |
| An entity that can be complained about | How it behaves when cargo is held |
That last row is the useful one. The register is a floor, not a recommendation. It excludes the category of counterparty that cannot be complained to, which is a smaller claim than most badge displays imply — and a more reliable one.
Badges that are not licences
Association marks are routinely displayed in the same visual register as federal authority, and they answer different questions.
| Badge | What it confirms | What it does not |
|---|---|---|
| FIDI FAIM | Passing a recurring quality audit | Authority to arrange ocean carriage |
| IAM / WCA | Network membership, dues paid | Any regulator's approval |
| CTPAT | Participation in a CBP security programme | Financial responsibility or federal authority |
Of the 245 pages measured, 20 display IAM or WCA badges. None of those badges is a substitute for the register, and a page showing a badge while showing no licence number has answered the easier question.
The three failure patterns
Cloned site. Real licence number, someone else's. Check the domain age and the payment instructions, not the number.
Fresh registration. A company incorporated weeks ago with a licence application pending. Pending is not licensed, and the register shows the difference.
Hijacked invoice. Bank details change late in the file, with urgency attached. Confirm by voice on a number you already held.
Where this goes next
Three pages carry the rest of this question: the number behind it, the comparison of whoever would do it, and the check that runs before you pay.
- the arithmetic of the total, duty and federal fees included — the figure behind it
- how the forwarder lists are built, and on what data — who does it
- the two-minute check that runs before you pay — check the licence
Two neighbouring pieces sit closer to this one than any of them: none of which costs anything, and How is LCL calculated.
Frequently asked questions
How do I know if a freight forwarder is legit?
Search the entity that issues the bill of lading in the FMC Ocean Transportation Intermediary application, by company name and by trade name. It is free, needs no account and takes about two minutes.
How do I know if a freight company is legit?
Establish which leg it is performing. Ocean carriage runs on an FMC licence or registration; the US road leg runs on FMCSA registration; customs entries run on a CBP broker permit. Each has its own public list.
What if the company has no licence number?
For a US-based entity arranging ocean carriage, that is the finding. For a foreign-based NVOCC it is expected: those are registered rather than licensed and appear in the list without a number, against a $150,000 bond.
Is an IAM or WCA badge enough?
No. Those confirm network membership and paid dues. They are not a regulator approval and do not evidence authority to arrange ocean carriage.
Does a licence mean the company is good?
No. It confirms authority, a posted bond and a qualifying individual. It says nothing about service quality, solvency or whether the quote you were given is complete.
Sources
- Federal Maritime Commission, OTI search application — searchable by company name and trade name, read 07/26/2026.
- Federal Maritime Commission, licensing and certification — qualifying individual requirement and foreign registration.
- SeaRates measurement of 245 pages across the ranking clusters, 07/25-26/2026: 2 show an OTI number, 29 name a bond amount, 4 point to the federal database, 20 display IAM or WCA badges.