FMC Collects $338,000 In Penalty Payments - Global Trade Magazine
  October 10th, 2016 | Written by

FMC Collects $338,000 In Penalty Payments

[shareaholic app="share_buttons" id="13106399"]

Sharelines

  • FMC reached agreements recovering $338,000 in civil penalties.
  • One vessel-operating common carrier and six ocean transportation intermediaries paid penalties to FMC.
  • The parties settled with FMC and agreed to penalties, but did not admit to violations.

The Federal Maritime Commission has completed compromise agreements recovering a total of $338,000 in civil penalties. The agreements were reached with one vessel-operating common carrier and six ocean transportation intermediaries (both non-vessel-operating common carriers and ocean freight forwarders).

The agreed-to penalties resulted from investigations conducted by the Commission’s Area Representatives in Houston, Seattle, South Florida, and New York, and by Washington D.C. headquarters staff. The parties settled and agreed to penalties, but did not admit to violations of the Shipping Act or Commission regulations.

“These agreements and penalties reflect continuous efforts to level the regulatory playing field for all segments of the maritime industry, guard against unfair trade practices, and ensure that the shipping public is served by qualified ocean transportation intermediaries,” said FMC Chairman Mario Cordero.

The agreements involve Posey International an NVOCC and ocean freight forwarder based in Spring, Texas. Commission staff alleged that Posey continued operating without a valid qualifying individual for a period in excess of one year.

King Ocean Services, a vessel-operating common carrier out of Miami, Florida was accused of providing services under contracts that were not timely filed with the commission.

CL USA Inc., an NVOCC and ocean freight forwarder located in Medley, Florida, was said to have operated without a valid qualifying individual for a period in excess of one year.

Carlo Shipping International is a licensed ocean transportation intermediary located in Elizabeth, New Jersey. It was alleged that the company accepted cargo for ocean transportation from unlicensed NVOCCs and provided transportation that was not in accordance with rates in its NVOCC tariff.

Sino Connections Logistics, a registered NVOCC based in Kowloon, Hong Kong, was accused of improperly utilizing rates limited to certain named accounts in one of its service contracts. It was also alleged the company provided transportation in the liner trade that was not in accordance with its NVOCC tariff.

Baron Worldwide, an ocean freight forwarder located in Centennial, Colorado, was alleged to have operated without a qualifying individual for a period in excess of one year.

China International Freight Co., based in Taipei, Taiwan, is an NVOCC registered with the commission. Commission staff alleged that China International obtained ocean transportation at less than rates and charges that would be otherwise applicable by improperly utilizing rates and charges limited to specific named accounts in its service contracts. China International also provided transportation that was not in accordance with the rates and charges published in its NVOCC tariff.