FMC Fines NVOCCs and Others A Total of $305,000 For Alleged Shipping Violations
The Federal Maritime Commission (FMC) has issued a news release announcing that it has entered into five compromise agreements resulting in the payment of civil penalties in an aggregate amount of $305,000.
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The FMC collected the following sums for the alleged violations of the Shipping Act of 1984 (Act) and other statutes as follows:
A $55,000 compromise agreement with Aces, Ltd. and Northeast Consolidators, Inc., a licensed ocean freight forwarder (Aces) and a licensed non-vessel operating common carrier (NVOCC) (Northwest), both located in Scituate, MA. The FMC alleges that Aces allegedly obtained freight forwarder compensation from ocean common carriers on shipments in which it had a direct or indirect beneficial interest. It was further alleged that Northeast obtained transportation by water for property at less than the rates or charges which would have been applicable through the device or means of permitting a related freight forwarding company, Aces, to collect forwarder compensation on shipments handled by Northeast.
A $25,000 compromise agreement with Air Parcel Express, Inc., a licensed ocean transportation intermediary (OTI) located in Miami, FL, for allegedly accessing service contracts to which it was not a signatory thereby obtaining ocean transportation for property at less than the rates and charges that would otherwise be applicable and operating as an NVOCC without the requisite OTI license and without publishing a tariff or providing proof of required financial responsibility.
A $60,000 compromise agreement with Cosa Freight Inc., a licensed and bonded OTI located in City of Industry, CA, for allegedly accessing service contracts to which it was not a signatory thereby obtaining ocean transportation for property at less than the rates and charges that would otherwise be applicable and providing transportation in the liner trade that was not in accordance with the rates and charges set forth in its published tariff.
A $25,000 compromise agreement with Nations Express Inc., a licensed freight forwarder located in Charlotte, NC, for allegedly providing service as an ocean freight forwarder and collecting compensation therefore, without obtaining the requisite OTI license and without providing proof of financial responsibility.
A $140,000 compromise agreement with Topocean Consolidation Service, Inc., a licensed NVOCC based in Los Angeles, CA, for allegedly obtaining ocean transportation of property at rates less than those which would have otherwise been applicable by improperly describing the commodities shipped and through the unlawful use of equipment substitution and providing service in the liner trades that was not in accordance with the rates charges, classifications, rules, and practices contained in a published tariff.
FMC press release (NR 05-16, dated 10/05/05) available at http://www.fmc.gov/speeches/newsrelease.asp?SPEECH_ID=211.