Every freight carrier, broker, forwarder, and logistics company that wants to move military cargo needs one thing before they can access a single government load: a military freight bond. Without it, you cannot register with the government’s transportation system, you cannot bid on military freight tenders, and you cannot be awarded DoD freight contracts. This guide covers everything you need to know to get bonded, stay compliant, and keep your access to one of the most stable freight markets in the country.
What Is a Military Freight Bond?
A military freight bond — formally called a USTRANSCOM Performance Bond, and commonly known as an SDDC bond, DoD performance bond, or ARTRANS bond — is a commercial surety bond required of Transportation Service Providers (TSPs) who wish to transport U.S. military freight. It is a mandatory registration requirement, not optional risk management.
The bond is currently administered by the U.S. Army Transportation Command (ARTRANS), which was previously known as the Military Surface Deployment and Distribution Command (SDDC). The full naming history: the program began under the Military Traffic Management Command (MTMC), was renamed SDDC in 2004, and was renamed again to ARTRANS in 2024. When you see “SDDC bond,” “MTMC bond,” or “ARTRANS bond” in registration documents or bonding guides, they all refer to the same bond requirement.
The official legal name of the bond filed with the surety market is the USTRANSCOM Performance Bond.
Two Categories of Military Freight Bonds
Most carriers entering this market are aware of freight carrier bonds. There is a second category — personal property carrier bonds — with an entirely different bond structure. Getting the wrong information about which applies to your operation can result in serious underbonding.
Freight Carrier Bonds guarantee the performance and delivery of military cargo: government equipment, supplies, materials, and DoD freight transported between installations, depots, ports, and operational locations. Motor carriers, freight brokers, logistics companies, and freight forwarders hauling military supplies need this bond.
Personal Property Carrier Bonds guarantee the transport of military personnel’s household goods and personal property when service members relocate between assignments. Companies participating in any of the following DoD programs need a personal property bond:
- Domestic Personal Property Program — interstate and intrastate household goods shipments within the continental United States (CONUS)
- International Personal Property Program — shipments to, from, and between overseas locations (OCONUS)
- Mobile Home Personal Property Program — movement of mobile homes within CONUS
- Boat Personal Property Program — movement of boats within CONUS
A company that moves both military cargo and military household goods may need both bonds, maintained simultaneously with separate surety filings in separate government systems.
Bond Amounts for Freight Carriers
The required bond amount for freight carriers is determined by company size and the number of states in which shipments will originate and terminate. Both origin and destination must fall within the states you select — a carrier bonded for California cannot accept a California-to-Nevada load without coverage for Nevada.
For large freight carriers:
| States Served | Required Bond Amount |
|---|---|
| One (1) state | $25,000 |
| Two (2) to three (3) states | $50,000 |
| Four (4) or more states | $100,000 |
For SBA-registered small carriers:
| States Served | Required Bond Amount |
|---|---|
| Up to three (3) states | $25,000 |
| Up to ten (10) states | $50,000 |
| Eleven (11) or more states | $100,000 |
Special categories:
- Freight brokers, freight forwarders, logistics companies, air freight forwarders, shipper agents: $100,000 flat
- Bulk fuel carriers: $25,000 flat
Revenue-based option (carriers with 3+ years of DoD experience): Carriers who have operated under their own name with the DoD for three or more consecutive years may bond at 2.5% of their total DoD revenue for the prior 12 months. The minimum under this option is $25,000 and the maximum is $100,000. For carriers with significant DoD revenue, this formula often produces lower required amounts than the standard state-based tiers — run the calculation before selecting your bond amount.
Important note on bond increases: If ARTRANS determines that your required bond amount must increase — because your DoD revenue has grown, your service area has expanded, or the program requirements change — you will receive formal notification and have 30 days to submit a new, larger bond. Missing this window results in immediate registration suspension.
Bond Amounts for Personal Property Carriers
The personal property carrier bond uses a different formula than the freight carrier tiers. Rather than state-based tiers, personal property carrier bonds are calculated as revenue-based minimums:
- Domestic program: Bond must equal $50,000 or 2.5% of previous-year domestic DoD revenue, whichever is greater
- International program: Bond must equal $100,000 or 2.5% of previous-year international DoD revenue, whichever is greater
This means the personal property bond does not cap at $100,000 the way freight carrier bonds do. A personal property carrier with $6 million in international DoD household goods revenue would owe a bond of $150,000 (2.5% of $6M), exceeding the freight carrier maximum. Carriers entering the personal property market must calculate their actual exposure under this formula, not assume the same bond amounts apply as for cargo carriers.
Personal property carrier bonds are filed through the Defense Personal Property System (DPS), a separate government platform from the Freight Carrier Registration Program (FCRP) used for cargo carrier bonds.
What Military Freight Bonds Cover
The bond covers specific, defined categories of performance failure. Understanding the boundaries matters for compliance purposes and for knowing what separate insurance coverage you need.
The military freight bond covers:
- Carrier default on contracted DoD shipments
- Abandoned shipments
- Carrier bankruptcy while freight is under contract or in transit
- Any situation requiring the government to source a replacement carrier at additional expense
The bond does not cover:
- Late pickup or delivery
- Excessive transit times
- Refusals or no-shows
- Improper or inadequate equipment
- Payment disputes with subcontractors
- Lost or damaged cargo claims
Cargo damage, loss, and theft are covered by cargo insurance — a separately required and separately maintained coverage. The bond and cargo insurance serve entirely different purposes. Believing your military freight bond provides cargo coverage is a compliance gap that creates real financial exposure. Both coverages are required; neither substitutes for the other.
Who Is Exempt
The following carrier types are exempt from the military freight bond requirement: local drayage carriers, commercial zone carriers, barge carriers, rail carriers, sealift carriers, and pipeline carriers.
Additionally, the bond requirement does not apply to domestic intrastate movement — carriers hauling DoD freight entirely within a single state without crossing state lines may not be subject to this requirement. This exemption is relevant for carriers operating near large military installations who accept local assignments that do not cross state boundaries. Carriers who intend to expand to interstate movement should bond in advance of doing so, not after accepting a cross-border load.
One Bond Per SCAC
Each Standard Carrier Alpha Code your company holds requires a separate military freight bond. A carrier operating under two SCAC codes must obtain and maintain two bonds. A company that has acquired another carrier with its own SCAC must bond each entity separately.
The SCAC is a two-to-four letter identifier issued by the National Motor Freight Traffic Association (NMFTA). You cannot file a bond with ARTRANS without one. Apply at nmfta.org — $68 online, $78 by mail, processing in one to three business days.
Not accepted in lieu of a bond: Trust funds, customs bonds, DOT bonds, letters of credit, and cash deposits. A surety bond from an authorized company is the only acceptable financial guarantee.
Cost of Military Freight Bonds
The annual premium you pay to the surety company is calculated as a percentage of the required bond amount. Personal credit is the primary pricing factor — all owners with 10% or more ownership are evaluated.
| Credit Profile | Annual Premium Rate | $25,000 Bond | $50,000 Bond | $100,000 Bond |
|---|---|---|---|---|
| Excellent (720+) | 1%–2% | $250–$500 | $500–$1,000 | $1,000–$2,000 |
| Good (650–719) | 2%–3% | $500–$750 | $1,000–$1,500 | $2,000–$3,000 |
| Fair (600–649) | 3%–5% | $750–$1,250 | $1,500–$2,500 | $3,000–$5,000 |
| Challenged (550–599) | 5%–8% | $1,250–$2,000 | $2,500–$4,000 | $5,000–$8,000 |
| Poor (below 550) | 8%–10% | $2,000–$2,500 | $4,000–$5,000 | $8,000–$10,000 |
Carriers with weaker credit who can provide strong business financial statements, documentation of liquid assets, or a demonstrable DoD performance history sometimes qualify for better rates than credit alone would suggest. Carriers denied by standard markets can still often get bonded through specialty programs at higher rates.
Bond renewals are annual. Your credit is re-evaluated at each renewal — improved credit between issuance and renewal can lower your premium; a claim on record will likely raise it or trigger additional underwriting scrutiny. A carrier who files a claim risks not just the claim cost but the ability to renew and maintain registration.
The Dual Bond Requirement: ARTRANS Bond + BMC-84
Companies that operate as both a military freight carrier and a freight broker must maintain two bonds simultaneously:
1. ARTRANS/USTRANSCOM Performance Bond — required by ARTRANS for military freight transportation, filed through the FCRP or DPS depending on program type.
2. BMC-84 Freight Broker Bond — required by the FMCSA for all property brokers, $75,000 minimum, filed with the federal motor carrier safety administration.
These are separate bond products with separate obligees (ARTRANS vs. FMCSA), separate sureties (which may or may not be the same company), separate filing systems, and separate annual renewal timelines. A company that both arranges and physically moves military freight must track compliance for both bonds independently.
The Registration Process: From Application to ETA Password
The military freight bond is one step in a multi-step registration process that qualifies your company to access government freight loads. The bond alone does not activate your registration; every step must be completed before you receive system access.
Step 1: Apply for a Standard Carrier Alpha Code (SCAC) Visit nmfta.org. Apply online for $68 or by mail for $78. Each business entity needs its own SCAC, and each SCAC requires its own bond.
Step 2: Establish an Electronic Payments Account Register with U.S. Bank Syncada (formerly PowerTrack). This free enrollment enables electronic billing and payment for DoD freight services.
Step 3: Verify DOT Operating Authority You must have maintained continuous DOT authority for at least three years before registering. Motor carriers need an MC number; forwarders need an FF number. ARTRANS verifies your history during review.
Step 4: Complete CBA License Application (If Applicable) Surface freight forwarders and brokers handling commercial bills of lading must complete this application to be authorized for DoD commercial freight documentation.
Step 5: Obtain Your Military Freight Bond Apply for your ARTRANS/USTRANSCOM Performance Bond through an authorized surety company. After payment, the surety files the bond electronically — no original paper bond document is required. Processing typically takes 24–48 hours after payment.
Step 6: Secure Cargo Insurance Maintain cargo insurance meeting ARTRANS minimums: $150,000 for general freight; $25,000 for bulk fuel carriers. This is a registration prerequisite, not an afterthought.
Step 7: HAZMAT Certification (If Applicable) If your contracts will include hazardous materials, obtain HAZMAT certification through the Pipeline and Hazardous Materials Safety Administration (PHMSA).
Step 8: Section 889 Compliance Certification Self-certify compliance with the FY2019 National Defense Authorization Act Section 889(a)(1)(B), which prohibits use of telecommunications or video surveillance equipment from Huawei, ZTE, Hytera, Hikvision, or Dahua. Review your company’s network equipment, phones, and cameras before certifying.
Step 9: Submit ARTRANS Registration Submit your Freight Carrier Registration Package through the ARTRANS portal. Approval notification typically arrives within three business days.
Upon approval: The ETA Password When your registration is confirmed and your bond is accepted, ARTRANS issues an Electronic Transportation Acquisition (ETA) password. This password unlocks access to the DoD freight bidding and load management system — the platform where military freight opportunities are posted, bid on, and awarded. The ETA password is the purpose of the entire registration process. Without it, no military loads can be accessed, bid on, or accepted, regardless of how otherwise qualified you are.
Renewing Your Military Freight Bond
Military freight bonds are annual and must be renewed every year to maintain registration. At renewal, your surety re-evaluates your credit and resets the premium accordingly. At the time of renewal, the surety files confirmation of renewal directly with ARTRANS.
If your bond lapses: Your ARTRANS registration is suspended immediately. ETA system access is revoked. You cannot bid on new DoD loads and cannot accept freight under contracts you currently hold. Reinstatement requires re-submission of a new bond and re-processing through ARTRANS, which can take several business days. The disruption to active operations can be significant.
Set renewal reminders at 60 days and 30 days before your bond’s annual expiration date. Pay renewal invoices as soon as they arrive, not at the deadline.
How to Get a Military Freight Bond
Apply, receive a Quote, Pay the premium, File the bond. For applicants with acceptable credit, this takes 24–48 hours. Applicants with challenged credit or bond amounts above $50,000 may need to provide business financial statements or documentation of liquid assets to complete underwriting.
The bond alone does not qualify you to haul military freight. You must complete all ARTRANS registration steps — SCAC, Syncada enrollment, DOT authority verification, cargo insurance, and the full registration submission — before your ETA access is granted. Plan for the full registration timeline when pursuing your first military freight contract.
Swiftbonds writes ARTRANS/USTRANSCOM Performance Bonds (military freight bonds, DoD performance bonds, SDDC bonds) for freight carriers, brokers, forwarders, and logistics companies in all 50 states.
Swiftbonds LLC
2025 Surety Bond Technology Provider of the Year
4901 W. 136th Street
Leawood KS 66224
(913) 214-8344
https://swiftbonds.com/
Frequently Asked Questions
What is the difference between an SDDC bond, a DoD performance bond, and an ARTRANS bond?
They are the same bond requirement under different names. SDDC (Military Surface Deployment and Distribution Command) was the administering authority from 2004 until 2024, when it was renamed ARTRANS (U.S. Army Transportation Command). Before SDDC, the program was administered by MTMC (Military Traffic Management Command). The official legal name throughout has been the USTRANSCOM Performance Bond.
What is a military freight bond specifically for?
It guarantees that a Transportation Service Provider will fulfill their obligations to deliver DoD freight. It covers default, abandoned shipments, and carrier bankruptcy — situations where the carrier completely fails to deliver. It does not cover late delivery, cargo damage, operational failures, or payment disputes with subcontractors.
How much does a military freight bond cost annually?
For carriers with good credit, typically 1%–3% of the required bond amount per year. A $25,000 bond costs $250–$750 annually; a $100,000 bond costs $1,000–$3,000 annually. Carriers with poor credit may pay 8%–10%, with options to improve their rate by providing financial documentation.
Can I haul military freight with bad credit?
Yes, though at a higher premium. Most applicants can be bonded regardless of credit; the tradeoff is premium cost, not eligibility. Carriers who are denied by standard surety markets can typically access specialty programs.
Do personal property movers (military household goods) need a different bond than cargo carriers?
Yes. Personal property carrier bonds use a different formula — they are the greater of a floor amount ($50,000 domestic, $100,000 international) or 2.5% of prior-year DoD revenue. This can produce required bond amounts larger than the $100,000 maximum that applies to cargo carriers. Personal property bonds are also filed through DPS (Defense Personal Property System), not the FCRP used by cargo carriers.
Do I need a separate bond if I also act as a freight broker?
Yes. A company acting as both a military freight carrier and a property broker must maintain the ARTRANS/USTRANSCOM Performance Bond and a separate FMCSA BMC-84 Freight Broker Bond ($75,000). These are independent requirements with separate obligees, filing systems, and renewal timelines.
What happens if ARTRANS says my bond amount needs to increase?
You will receive formal notification and have 30 days to submit a new, larger bond. Failure to provide the increased bond within 30 days results in registration suspension.
Is intrastate military freight hauling subject to the bond requirement?
The bond requirement does not apply to domestic intrastate movement — freight hauled entirely within a single state without crossing state lines. Carriers operating exclusively within one state near military installations may be exempt. Carriers planning to expand to interstate operations should bond before accepting any cross-state loads.
What is the ETA password and why do I need it?
The Electronic Transportation Acquisition (ETA) password is issued by ARTRANS upon completion of the full registration process, including bond acceptance. It provides access to the DoD’s freight load management and bidding platform. Without the ETA password, you cannot view, bid on, or accept any military freight loads. It is the practical result of everything the registration process requires.
Conclusion
Military freight bonds are not administrative paperwork — they are the entry credential to one of the most stable, consistent, and well-paying freight markets in the US transportation industry. Carriers and brokers who understand the bond requirements, maintain compliance, and operate reliably build access to government freight that is unaffected by market downturns, fuel price spikes, or shipping demand cycles. The registration process requires attention and preparation, but once complete, the ETA access it unlocks opens a freight market that rewards performance with steady, recurring opportunity.
5 Things About Military Freight Bonds That Most Carriers Don’t Know
- Personal property carriers (military movers) face a different bond formula than cargo carriers — and it can produce required amounts larger than the cargo carrier maximum. Every general surety bonding guide treats military freight bonds as a single product with a maximum of $100,000. Personal property carriers moving military household goods, mobile homes, or boats operate under a bond formula with no ceiling — if 2.5% of your international DoD revenue exceeds $100,000, that higher amount is what you owe. A high-volume military mover with $8 million in annual international household goods contracts owes $200,000 in bond coverage, not $100,000. Carriers entering the household goods market for military families should calculate their actual bond requirement under the personal property formula before budgeting for registration costs.
- The program has been renamed twice since its origin, and most bonding resources on the internet have not caught up to either change. The bond started under MTMC, became the SDDC bond in 2004, and became the ARTRANS bond in 2024 when the U.S. Army Transportation Command took over. Most surety websites — including some of the highest-ranking ones — still use “SDDC” exclusively. Searching “SDDC bond” will still return relevant results, and the old name is fine for search purposes, but carriers submitting registration paperwork, reviewing official government materials, or communicating with the administering authority should use current ARTRANS terminology. The official registration welcome package is published on army.mil, not the old sddc.army.mil domain that many surety sites still link to.
- Your required bond amount is not fixed at registration — ARTRANS can require you to increase it, and you have 30 days to comply or face suspension. Most carriers assume they obtain a bond once, renew it annually, and the amount stays constant unless they expand their service area. This is not correct. If ARTRANS determines your bond amount is insufficient — because your DoD revenue has grown past the threshold where your current bond covers 2.5% — they will notify you and give you 30 days to submit a higher bond. Missing that 30-day window results in immediate registration suspension. Build a review of your DoD revenue against your current bond amount into your annual renewal process, and proactively request an increased bond if your revenue has grown significantly, rather than waiting for an ARTRANS notification.
- If you also operate as a freight broker, you need a second bond — the BMC-84 — and the two bonds are managed through completely separate government systems. Carriers who arrange DoD transportation for other carriers (acting as brokers) in addition to hauling freight themselves must maintain both the ARTRANS/USTRANSCOM Performance Bond and the FMCSA BMC-84 Freight Broker Bond. These have separate obligees, separate filing platforms, separate renewal cycles, and separate compliance consequences if they lapse. A company that lets its BMC-84 lapse while maintaining its ARTRANS bond may find itself compliant for military hauling but suspended for brokering. Dual-compliance tracking should be built into your operations calendar if you operate in both modes.
- A claim against your military freight bond does not just cost money — it can permanently close your access to the military freight market. The bond is a guarantee, not insurance. If ARTRANS files a valid claim and the surety pays it, you owe that money back to the surety in full, plus interest and administrative expenses. Beyond the direct financial cost, a claim creates a permanent record in your surety history that makes future bond applications significantly harder — some sureties will decline to renew or rewrite a carrier with a claim history, and the ones that will may charge rates that make the program economically unviable. Carriers who face a potential default situation — a truck mechanical failure mid-haul, a bankruptcy event, an inability to deliver — are better served by contacting their surety immediately and working transparently toward a resolution than by allowing a claim to be filed. The surety has options to assist a struggling principal; a paid claim leaves both parties with fewer options going forward.
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