You cannot haul a single load for the U.S. military without one specific piece of paper in place. Most carriers find this out during registration — when the process stalls because they skipped a step they did not know existed. This guide covers every requirement, every bond amount, every prerequisite, and every common mistake so you can enter the military freight market without the guesswork.
What Is a Military Freight Bond?
A military freight bond — also called an SDDC bond, an ARTRANS bond, or a Department of Defense performance bond — is a commercial surety bond required of all Transportation Service Providers (TSPs) who want to transport freight for the U.S. military. It functions as a financial guarantee to the government that the TSP will fulfill its contractual obligations to deliver military cargo as agreed.
This is not a construction performance bond. Despite using the word “performance,” the military freight bond is classified as a commercial surety bond, priced and processed differently from the contract performance bonds used on building projects. Carriers and brokers working with surety providers who specialize only in construction bonding should seek out providers with transportation-specific expertise.
The Command Behind the Bond — and Two Name Changes Most Guides Miss
The bond has existed under three different command names. It started as the MTMC bond under the Military Traffic Management Command. In 2004, MTMC was renamed the Military Surface Deployment and Distribution Command, giving the bond the “SDDC” name the industry still uses widely today. On September 24, 2025, the SDDC was officially redesignated as the U.S. Army Transportation Command — now known as ARTRANS.
Separately, the Department of Defense itself was renamed the Department of War (DoW) under the current administration. The official government URL is now war.gov. No competitor guide in this keyword’s top search results has updated to reflect either change. The bond program and all requirements remain exactly the same — but carriers communicating with current program administrators will encounter the ARTRANS and Department of War names going forward.
Who Needs a Military Freight Bond
Any TSP seeking to transport DoD/Department of War freight through ARTRANS must obtain and maintain this bond. That includes freight carriers, freight brokers, logistics companies, surface freight forwarders, and air freight forwarders. Not every carrier type is required to participate — local drayage operators, commercial zone carriers, barge operators, rail carriers, sealift carriers, and pipeline carriers are all exempt from the bond requirement.
What the Bond Covers — and What It Does Not
The military freight bond covers financial losses resulting from a TSP’s failure to deliver contracted cargo. Understanding what falls inside and outside the bond’s scope is critical — many carriers incorrectly assume the bond functions like cargo insurance.
| Covered by the Bond | Not Covered by the Bond |
|---|---|
| Carrier default on delivery | Late pickup or delivery |
| Abandoned shipments | Excessive transit times |
| Carrier bankruptcy | Refusals or no-shows |
| Failure to perform contracted haul | Improper or inadequate equipment |
| Claims for lost or damaged cargo | |
| Payment to subcontractors or middlemen |
If a shipment is damaged in transit or if a carrier shows up late, those situations are handled by cargo insurance — not this bond. The bond exists specifically to protect the government against a carrier completely failing to perform: walking away from a load, going bankrupt mid-contract, or defaulting outright.
The Four Program Categories This Bond Covers
Most guides treat military freight as a single category. In reality, the ARTRANS bond requirement applies across four distinct Department of War logistics programs. Understanding which program applies to your operation helps clarify your bond filing requirements:
The Domestic Personal Property Program covers interstate and intrastate shipments within CONUS (the continental United States). The International Personal Property Program covers shipments to and from CONUS/OCONUS destinations, as well as movements between OCONUS locations. The Mobile Home Personal Property Program governs movement of mobile homes within CONUS using One-Time-Only rates. The Boat Personal Property Program covers movement of boats within CONUS, also under One-Time-Only rates.
Operators participating in international programs face a higher bond minimum. International participants must file a performance bond of no less than $100,000 or 2.5% of their previous-year international DoD revenue, whichever is greater. Domestic operators must post $50,000 or 2.5% of prior-year domestic DoD revenue, whichever is greater. The bond does not apply to domestic intrastate movement.
Bond Amounts: The Complete Table
For most carriers and brokers, bond amounts are determined by company size, TSP type, and the number of states in which the carrier operates. Movements must begin and end in one of the selected states.
For large companies (non-SBA):
| States of Operation | Required Bond Amount |
|---|---|
| 1 state | $25,000 |
| 2 to 3 states | $50,000 |
| 4 or more states | $100,000 |
For SBA-registered small carriers:
| States of Operation | Required Bond Amount |
|---|---|
| Up to 3 states | $25,000 |
| Up to 10 states | $50,000 |
| 11 or more states | $100,000 |
Special fixed amounts apply to certain TSP categories regardless of state count: surface freight forwarders, logistic companies, freight brokers, and air freight forwarders all require a $100,000 bond due to the volume of traffic they handle. Bulk fuel carriers require only $25,000.
Carriers who have operated continuously in their own name with the DoD for three or more years may have the option to calculate their bond as 2.5% of their total DoD revenue for the prior 12 months — subject to a floor of $25,000 and a ceiling of $100,000. For high-revenue operators, this formula can result in a higher required bond amount than the flat state-based tier, so both calculations should be compared before filing.
One requirement that surprises many multi-code operators: you must obtain a separate bond for each Standard Carrier Alpha Code (SCAC) you hold. There is no consolidated bond option for companies operating under multiple SCAC codes.
Before You Apply: The Prerequisites
This is the step that trips up most new entrants. The bond application is not the starting point — it comes after a multi-step registration process that must be completed in sequence. You must also meet specific insurance and safety requirements before applying:
Cargo insurance of $150,000 for general freight (or $25,000 for bulk fuel carriers) must be in place. A satisfactory FMCSA safety rating — or the applicable state agency equivalent — must be maintained throughout participation. These prerequisites are required before ARTRANS will accept your carrier registration, and the bond cannot be filed without an active registration.
The registration sequence itself runs as follows. First, obtain a Standard Carrier Alpha Code from the National Motor Freight Traffic Association (NMFTA) — SCAC registration costs $68 online or $78 by mail. Second, establish an Electronic Payments Account with U.S. Bank Freight Payments to enable electronic payment for military freight services. Third, become Syncada certified — Syncada (formerly PowerTrack) is the free online platform through which shippers and carriers coordinate transportation management. Fourth, complete your ARTRANS carrier registration online, which requires your SCAC and Syncada certification to already be in place. Fifth, apply for and obtain your military freight bond. Once your bond is accepted, the surety files it electronically through the Defense Personal Property System (DPS) — the official government platform for this bond type. ARTRANS does not require the original bond document.
How to Get Your Military Freight Bond
Once your prerequisites and registration steps are complete, the bond process is direct. Submit your application along with a personal credit check — for most bond amounts this is the primary underwriting input, though financial statements may also be requested. Swiftbonds handles military freight bonds nationwide and files electronically with ARTRANS, so you are not chasing paperwork between agencies. You apply, receive a quote, pay the annual premium, sign the indemnity agreement (your personal guarantee that you will reimburse the surety for any claims paid), and the bond is filed. Once ARTRANS confirms acceptance, you receive your Electronic Transportation Acquisition (ETA) password — your credential for accessing DoD transportation programs and bidding on military freight loads. Without a confirmed bond and active ETA password, you cannot access the military freight assignment system at all.
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What It Costs
Annual premium rates are based primarily on personal credit. All owners with 10% or more ownership in the company have their credit evaluated as part of underwriting — not just the primary applicant.
| Credit Profile | Annual Premium Rate |
|---|---|
| Strong credit (700+) | 1% to 3% of bond amount |
| Average or imperfect credit | 3% to 5% of bond amount |
| Poor credit or prior issues | 5% to 10% of bond amount |
For a $50,000 bond at 2%, the annual premium is $1,000. At 8%, the same bond costs $4,000 per year. Poor credit is not an automatic disqualification, but it meaningfully affects the annual cost and may result in denial at some sureties. Submitting clean financial statements and documented liquid assets can help offset a weaker credit profile by demonstrating your ability to cover potential claims if they arise.
Filing, Renewals, and the No-Lapse Rule
The bond term is one year and is annually renewable. The surety files the bond electronically with ARTRANS through the Defense Personal Property System. The original bond is not required. Upon renewal, the surety emails confirmation directly to ARTRANS — maintaining an unbroken, documented renewal trail.
One requirement that almost no guide addresses: ARTRANS bonds must be written as continuous obligations with no lapse in coverage at any time. A gap in your bond — even a brief one — can disrupt your carrier registration, suspend your ETA password access, and create compliance violations on any active contracts. Set renewal reminders well in advance of your expiration date and work with a surety provider who sends proactive renewal notices.
If ARTRANS determines that your bond amount needs to increase — for example, because your DoD revenue has grown into a higher tier — you will receive a written notification and 30 days to submit a new bond at the higher amount. Missing that deadline can place your registration in jeopardy.
Why Military Freight Is Worth the Setup
The registration process is more involved than most commercial carrier setups. But once you are in, the military freight market offers something rare in transportation: consistent, government-backed freight volume with a reputable obligee. Carriers with clean performance records build credibility within the government contracting ecosystem that translates directly into more load opportunities and stronger positioning for future contract bids. A single claim, on the other hand, can significantly damage your ability to obtain future bonds and may permanently shut you out of the military freight market.
FAQs
What is ARTRANS and why do most guides still say SDDC? ARTRANS is the current name for the U.S. Army Transportation Command, redesignated from SDDC on September 24, 2025. The bond program, amounts, and requirements are unchanged. Most guides have not updated their content to reflect the rename, so both names remain in wide circulation. For current program communications and official registration materials, ARTRANS is the correct reference.
What is the difference between a military freight bond and a cargo insurance policy? They are entirely different instruments that serve different purposes. The military freight bond guarantees that you will perform your contractual delivery obligations. It covers the government’s losses if you default, abandon a shipment, or go bankrupt. Cargo insurance covers physical loss or damage to goods in transit. You are required to carry both — they are not substitutes for each other.
Can I use a trust fund or letter of credit instead of a bond? No. Trust funds, customs bonds, DOT bonds, and letters of credit are not accepted in lieu of the ARTRANS military freight bond. The surety bond is the only accepted financial instrument for this program.
Do I need a separate bond for each SCAC code I hold? Yes. Each Standard Carrier Alpha Code requires its own separate bond. Multi-SCAC operators must file separate bonds for each code and maintain all of them without lapse throughout active participation in the program.
What happens if a claim is filed against my military freight bond? The surety investigates the claim. If it is valid, the surety pays the Department of War up to the full bond amount and then seeks full reimbursement from you, including interest and investigation costs. A paid claim can significantly damage your ability to obtain future bonds and may result in denial — effectively removing you from the military freight market.
What is an ETA password and how do I get one? An ETA (Electronic Transportation Acquisition) password is the access credential issued to carriers after their bond is accepted by ARTRANS. It grants access to DoD transportation programs, load assignment systems, and contract management tools. You receive instructions for obtaining your ETA password in the filing confirmation your surety provides after ARTRANS accepts the bond.
How long does the bond process take from application to active status? For applicants with strong credit and clean documentation, the typical turnaround from application to bond in hand is 24 to 48 hours. The more time-consuming steps are the prerequisite registrations (SCAC, U.S. Bank account, Syncada, and ARTRANS carrier registration), which should be initiated well in advance.
What happens if my required bond amount increases after I’m already registered? If ARTRANS determines your bond needs to be higher — typically because your revenue has moved into a new tier — you will receive a notification and have 30 days to file a new bond at the increased amount. Failing to meet that deadline can jeopardize your active carrier registration.
Conclusion
The military freight bond is the financial foundation of your ability to operate in the Department of War’s transportation network. It is a commercial surety bond, not a construction bond, and it is backed by a specific registration sequence, cargo insurance prerequisites, annual renewal requirements, and a continuous-coverage obligation that has no parallel in standard commercial freight. With SDDC now operating as ARTRANS and the Department of Defense operating as the Department of War, carriers who stay current on these naming changes will be better positioned when navigating official program communications, registration forms, and filing confirmations. Getting into the military freight market takes preparation — but the stability, volume, and credibility that come with a clean performance record make it one of the most valuable lanes a freight company can establish.
5 Interesting Things About Military Freight Bonds Not Found in Any of the Top 10 Sites
- The Defense Personal Property System (DPS) — the platform through which military freight bonds must be electronically filed — is the same government system used to manage service members’ household goods shipments during military relocations. This means the bond that protects the government against carrier default is filed and tracked within a broader logistics platform that simultaneously manages the personal property of hundreds of thousands of active-duty military personnel and their families each year. The bond’s filing presence in DPS directly connects a carrier’s compliance status to a much larger household goods assignment pipeline that most freight-focused carriers never realize exists.
- The indemnity agreement that every bond applicant must sign is a personal guarantee — not just a corporate one. When you sign an ARTRANS bond indemnity agreement, you are personally committing to repay the surety for any claims paid, regardless of whether your company is structured as an LLC or corporation. This personal indemnity exposure means that a bond claim is not just a business liability — it can follow the owner individually if the company cannot satisfy the surety’s reimbursement demand. This is the single most underexplained financial risk in the military freight bonding process and appears in almost no carrier-facing guide.
- The SCAC code that every carrier must obtain before applying for the bond has an interesting enforcement dynamic: it is technically issued by a private organization, the National Motor Freight Traffic Association (NMFTA), not by any government agency. The U.S. military’s ARTRANS program delegates carrier identification entirely to a private industry body, meaning the government’s access control for its own freight network starts with a fee paid to a trade association. The NMFTA annual SCAC maintenance fee is tiered by fleet size, which means larger carriers pay more to maintain the same two-to-four letter code that every small owner-operator also holds.
- Military freight carriers who participate in the International Personal Property Program — handling shipments to and from overseas military installations (OCONUS) — operate under a higher bond floor than domestic carriers regardless of their state count or revenue level. The international minimum is $100,000. This creates a meaningful financial distinction between carriers who only haul within the continental United States and those who participate in overseas military logistics. Most bond guides present a single bond amount table without distinguishing domestic from international program participation at all.
- The ARTRANS Freight Carrier Registration Program has historically operated on an open-season model — meaning there are designated periods when new carrier registrations are accepted and periods when the program is closed to new entrants. A carrier who completes all prerequisites, obtains their SCAC, sets up their bank account, gets Syncada certified, and purchases their bond during a closed registration season may still have to wait — sometimes months — before their carrier registration is activated. This open/closed season dynamic means the bond is a necessary but not sufficient condition for entering the military freight market, and timing your entry to an open season is a strategic consideration that almost no guide addresses.
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