FMC INVESTIGATES NVOS FOR SHIPPING ACT VIOLATIONS

FMC INVESTIGATES NVOS FOR SHIPPING ACT VIOLATIONS    The U.S. Federal Maritime Commission has ordered an investigation into the shipping practices of New York-based non-vessel-operating common carriers Empire United Lines Co. and All Flags Forwarding for alleged 1984 Shipping Act violations.
   Between April 2, 1997 and Oct. 5, 1999, Empire United Lines, which regularly ships cargo from the United States to Russia, allegedly listed a freight forwarder on numerous bills of lading for its own shipments, allowing the forwarder to collect unwarranted compensation from several ocean carriers. A portion of this compensation was then pocketed by Empire United Lines, the FMC said.
   The FMC also found that on numerous occasions that Empire assessed and collected money from its customers based on rates that do not correspond to those filed with the agency.
   From April 2, 1997 to Aug. 17, 1999, All Flags also “knowingly and willfully” collected forwarder compensation from at least three ocean carriers without performing any services required to receive this compensation, the FMC said.
   “This activity appears to have resulted from another NVOCC consistently listing All Flags and the name “Joe Catania” in the freight forwarder box on ocean bills of lading from shipments which were being processed entirely by the NVOCC’s employees at its office in Brooklyn,” the FMC said. “All Flags and its principals knowingly and willfully shared a portion of the compensation with the NVOCC by issuing payments pursuant to apparently unsubstantiated invoices generated by the NVOCC for various alleged services and products.”
   The initial decision by the FMC’s Administrative Law Judge will be issued for both NVO cases by Aug. 1, 2003, and the final decision from the commission will be released by Dec. 1, 2003, the FMC said.