FMC orders probe of Chinese NVO

FMC orders probe of Chinese NVO    The U.S. Federal Maritime Commission said it has ordered an investigation and hearing into possible violations of the Shipping Act of 1984 by Worldwide Logistics Co. Ltd., a Chinese non-vessel-operating common carrier.
   “It appears that Worldwide originated and substantially participated in an ongoing practice of misdescribing cargo to the transporting ocean common carrier since at least April 2008,” the FMC said in a Federal Register notice.
   “Contemporaneous documentation such as the commercial invoice or the NVOCC house bill of lading reflect that shipments declared to the vessel operator as 'fabric' or 'cotton fabric' actually were loaded with garments or with other miscellaneous finished textile goods,” the FMC explained. “Due to the difference between the rate Worldwide paid to ship the misdescribed goods and the rate at which the cargo should have moved under the various service contracts used by Worldwide, it appears that Worldwide obtained lower than applicable rates for these shipments, in violation of section 10(a)(1) of the Shipping Act.”
   The FMC added it appeared that for the same shipments, 'the rate assessed by Worldwide to its NVO customers appears to differ substantially from its published tariff rates, which would be a violation of 10(b)(2) of the Shipping Act.”