Brokerage Commissions

Foreign Agricultural Service - Notice to the Trade

Freight Forwarding and Vessel Brokerage Commissions under Food for Progress and the McGovern-Dole International Food for Education and Child Nutrition Programs

To: All Implementing Partners, their Freight Forwarders, and all other Interested Parties

In accordance with USDA’s regulation §1599.6(c) and §1499.6(c) which states that “The recipient will ensure that the total commission or fees paid to intermediaries in the transportation procurement process will not exceed two and a half percent of the total transportation costs.”

Accordingly, USDA can ONLY authorize freight forwarding commissions to licensed freight forwarders up to 2 ½ percent. Therefore, in line with USDA’s regulations, USDA will only allow freight forwarding commission to freight forwarders at 2 ½ per cent instead of 2/3 of 2 ½ percent. There will be no split between freight forwarding and vessel broker commissions.

This notice is effective for solicitations and awards made to carriers as of March 1, 2018.  

If you have any questions concerning this notice, please contact Nicholas Kharabadze, at (202) 720-0143.