FMC receives $334,000 in civil penalties from seven businesses

The Federal Maritime Commission reached compromise agreements with several NVOCCs, forwarders and other companies, but none admitted to alleged violations of the Shipping Act.    The FMC said it has completed compromise agreements recovering a total of $334,000 in civil penalties from seven businesses – five ocean transportation intermediaries (OTIs), both NVOCCs and freight forwarders, as well as two unlicensed entities operating as OTIs.
   The parties settled and agreed to penalties, but did not admit to violations of the Shipping Act or FMC regulations.
   The compromise agreements are with:
   *The British Association of Removers Ltd., a registered NVOCC based in the United Kingdom, doing business as Movers Trading Club. It was alleged that Movers Trading Club obtained ocean transportation for property at less than the rates and charges otherwise applicable through the unfair device or means of permitting third parties to access NYK Line service contracts to which such third parties were not contract signatories nor affiliates thereunder. In addition, Movers Trading Club provided OTI services to its customers at rates not in accordance with its NVOCC tariff. Under the terms of the compromise, Movers Trading Club paid $80,000.
   *Sparx Logistics USA Limited, a licensed freight forwarder and NVOCC based in Charlotte, NC. FMC staff alleged Sparx obtained ocean transportation for property at less than the rates and charges otherwise applicable through the unfair device or means of utilizing rates limited to certain “named accounts” in MSC and ZIM service contracts. Also by improperly obtaining access to a ZIM service contract to which Sparx was not a contract signatory and by improperly allowing access to Sparx service contracts by another NVOCC not a contract signatory thereto. It was also alleged that Sparx had provided OTI services in the period immediately prior to obtaining its OTI license, and had provided transportation to its customers at rates not in accordance with Sparx’ NVOCC tariff. Sparx paid $80,000.
   *Azap Motors Inc., based in Jacksonville, Fla., was alleged through the actions and direction of its owner and chief executive officer, Ali Y. Husein, to have conducted OTI services without an FMC license, filing a surety bond, or publishing an NVOCC tariff. Under the terms of the compromise, Azap paid the FMC $60,000 and agreed to the dissolution of Azap as a Florida corporation.
   *Wilhelmsen Ships Services, Inc., a licensed and bonded NVOCC and freight forwarder located in Pasadena, Texas was alleged to have continued to operate as an OTI without a valid qualifying individual for a period in excess of one year. Wilhelmsen made a payment of $35,000.
   *Aromark Shipping LLC, a licensed and bonded freight forwarder and NVOCC headquartered in Newark, N.J., was alleged to have violated the Shipping Act by providing service to unlicensed or unbonded NVOCCs in the shipment of household goods to the Dominican Republic and Haiti. Aromark made a payment to the FMC of $32,500.
   *Knopf International Inc., based in Alexandria, VA, offers international household relocation services on behalf of employees of Knopf’s corporate clients. It was alleged that Knopf continued to conduct OTI services without benefit of an FMC license or bond, disregarding written and oral warnings by Commission staff. Knopf paid $24,000.
   *N/J International Inc., a licensed and bonded NVOCC and freight forwarder located in Houston, was alleged to have continued operating as an OTI  without a valid qualifying individual for a period in excess of one year. N/J International made a payment of $22,500.