FMC Investigates Whether 9 Household Goods Moving Companies Operated as NVOCCs Without a License, Etc.
The Federal Maritime Commission (FMC) has ordered an investigation (D/N 06-01) of nine household goods moving companies (respondents) to determine whether they violated the 1984 Shipping Act and the FMC's regulations by operating as non-vessel operating common carriers (NVOCCs) in the U.S. trades without obtaining licenses from the FMC, without providing proof of financial responsibility, without publishing an electronic tariff, and by failing to establish, observe, and enforce just and reasonable regulations and practices relating to or connected with receiving, handling, storing, or delivering property, etc.
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(Respondents in this investigation are listed by the FMC as: Moving Services, L.L.C.; Worldwide Relocations, Inc.; International Shipping Solutions, Inc.; Dolphin International Shipping, Inc.; All-in-One Shipping, Inc.; Boston Logistics Corp.; Around the World Shipping, Inc.; Tradewind Consulting, Inc.; Global Direct Shipping; Sharon Fachler; Oren Fachler; Lucy Norry; Patrick J. Costadoni; Steve Kuller; Megan K. Karpick (a.k.a. Catherine Kaiser, Kathryn Kaiser, Catherine Kerpick, Megan Kaiser and Alexandria Hudson); Barbara Deane (a.k.a. Barbara Fajardo); Baruch Karpick; Martin J. McKenzie; Joshua S. Morales; Elizabeth F. Hudson; Daniel E. Cuadrado (a.k.a. Daniel Edward); Ronald Eaden; and Robert Bachs.)
FMC received over 250 consumer complaints about respondents. The FMC states that it has received over 250 consumer complaints from shippers alleging that they hired one of the nine apparently related household goods moving companies to transport their personal effects and vehicles from various locations in the U.S. to foreign destinations. It appears that as early as the year 2002, a core group of individuals began to form a series of corporations for the purpose of providing ocean transportation services.
Shipments were contracted with licensed OTIs, etc. According to the FMC, each of the individuals, using the nine company names, dispatched shipments via ocean common carriers and arranged for the ocean transportation of full container load and less than full container load cargo on behalf of shippers. Shipments were contracted with licensed ocean transportation intermediaries (OTIs) under the names of the actual shippers as well as under the names of the various corporate entities.
The FMC states that in some cases, the actual shipper paid the respondent company directly for the marked-up ocean freight and the licensed OTI would in turn look to the respondent company and individual for payment of its invoiced freight amount.
According to the FMC, shipper complaints include allegations that the company hired to provide the transportation: failed to deliver the cargo and refused to return the pre-paid ocean freight; lost the cargo; charged the shipper for marine insurance but never obtained insurance coverage for the shipment; etc.
FMC Obtains an Injunction Against 3 Respondents. On January 17, 2006, the U.S. District Court for the Southern District of Florida granted the FMC's request for a preliminary injunction against three of the respondents in its investigation in Docket No. 06-01, All-In-One Shipping, Inc., Around The World Shipping, Inc., Boston Logistics Corp., and their respective officers, Defendants Joshua Morales, Daniel Cuadrado, and Elizabeth F. Hudson, as well as Defendant Global Direct Shipping (defendants). The injunction prohibits the defendants from acting as NVOCCs without a license, proof of financial responsibility, or public tariff. According to the FMC, violation of the injunction could lead to the Defendants being held in civil contempt by the court.
The FMC's press release on the injunction note that the FMC's complaint and motion against the three defendants are based on its order of investigation in Docket No. 06-01. The FMC states that it decided to seek injunctive relief to enjoin the defendants from conducting unlawful activities pending the completion of the FMC's formal investigation.
- initial decision of Administrative Law Judge due by 01/11/07
- final decision of FMC due by 05/11/07
FMC order of investigation and hearing (served 01/11/06, D/N 06-01) available at http://www.fmc.gov/images/homepage_content/Docket_No__06-01_(2).doc.
FMC press release on preliminary injunction (released 01/18/05, NR 06-01) available at http://www.fmc.gov/speeches/newsrelease.asp?SPEECH_ID=214.