“It appears that after registering with the FMC in April 2009 Sinicway originated and substantially participated in an ongoing practice of misdescribing cargo to the transporting ocean common carrier,” the FMC said in Wednesday’s Federal Register.
“Due to the difference between the rate Sinicway paid to ship the misdescribed goods and the rate at which the cargo should have moved under the various service contracts used by Sinicway, it appears that Sinicway obtained lower than applicable rates for these shipments, in violation of section 10(a)(1) of the Shipping Act,” the agency said.
The FMC said it has started an investigation to determine whether the firm unfairly obtained lower rates and whether it provided service other than at the rates, charges, and classifications set forth in its published NVO tariff or applicable NVOCC Service Arrangement.
FMC ordered a public hearing in the matter
