FMC Collects $383,000 Penalties in Deals With Six Carriers
The Federal Maritime Commission completed compromise agreements with six non-vessel-operating common carriers (NVOCCs) in the U.S. and abroad, recovering a total of $383,000 in civil penalties for alleged violations of the Shipping Act of 1984, said FMC Chairman Richard Lidinsky. The parties settled and agreed to penalties, but did not admit to violations of the Act or the Commission’s regulations. The compromise agreements are:
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- King Shipping Co.: FMC staff alleged that King Shipping knowingly and willfully obtained transportation under service contracts to which King Shipping was not a party, and through the further device of misdescribing the cargo or falsely declaring the cargo to be shipped on behalf of a named account in the service contract. In addition, King Shipping provided service other than at the rates and charges in its tariff, it said. King Shipping made a payment of $100,000.
- American Freight Line -- Southeast: FMC staff alleged that American Freight Line provided service to unlicensed or unbonded NVOCCs in the shipment of used automobiles to West Africa. American Freight Line paid $85,000.
- Greating Shipping: Greating Shipping allegedly knowingly and willfully obtained ocean transportation for property at less than the rates and charges that would otherwise be applicable by the device or means of misdescription of the commodities shipped under certain service contracts with K-Line. Greating Shipping made a payment of $68,000.
- Proshipping Group: Staff alleged that Proshipping knowingly and willfully obtained transportation under service contracts to which Proshipping was not a contract signatory, and provided service other than at the rates and charges in its tariff. Proshipping made a payment of $60,000.
- U.S. Pacific Transport: USPTI allegedly knowingly and willfully obtained transportation of imports from China by using service contracts to which USPTI was not a party, and by misdescribing commodities under service contracts to which it was a contract signatory. USPTI paid $50,000.
- Icon Logistics Service: Icon Logistics allegedly acted as a NVOCC without obtaining a license as an ocean transportation intermediary from the FMC, without providing the FMC evidence of a bond, insurance or other form of security and without publishing an electronic tariff. Icon Logistics also agreed to seek licensed OTI status at the earliest possible time. Icon Logistics paid $20,000.