FMC takes in $925,000 in penalty payments

The Federal Maritime Commission completed compromise agreements with eight non-vessel-operating common carriers and one unlicensed entity for Shipping Act violations which resulted in the collective recovery of $925,000 in civil penalties.    The Federal Maritime Commission completed compromise agreements with eight non-vessel-operating common carriers and one unlicensed entity for Shipping Act violations which resulted in the collective recovery of $925,000 in civil penalties. 
   “The parties settled and agreed to penalties, but did not admit to violations of the Shipping Act or commission regulations,” the FMC said in a July 13 statement.
   Separate compromise agreements were reached with NVOs Brilliant Group Logistics Corp. of Valley Stream, N.Y.; King Freight (USA) in Cerritos, Calif.; Interglobo North America in Jersey City, N.J.; Fastic Transportation Co. Ltd. of Shanghai, China; and Pudong Prime Int’l Logistics in El Monte, Calif., for “knowingly and willfully obtaining transportation at less than applicable rates and charges by improperly using rates contained in service contracts limited to certain named shipper accounts for unrelated shipments of cargo.” 
   Each compromise agreement also alleged that the NVOs provided transportation in the liner trade that was not in line with their published tariffs.
   A joint compromise agreement with NVOs Seamaster Logistics of Diamond Bar, Calif. and Toll Global Forwarding (Hong Kong) Ltd. in Hong Kong alleged that they knowingly and willfully allowed another NVO to access their service contracts for a fee, and “thereby unlawfully permitted a non-contract party to receive the benefits of service contracts contrary to its contract with the respective ocean common carrier.” 
   The FMC also alleged these NVOs provided ocean transportation in the liner trade that was not in accordance with their published tariffs.
   The agency said its compromise agreement with Pacific International Import Export of Auburn, Wash., alleged the entity acted as an NVO without a license, evidence of financial responsibility, or a published tariff.
   A compromise agreement with licensed NVO A-Sonic Logistics (USA) in Valley Stream, N.Y., alleged it “knowingly and willfully accepted cargo from one or more ocean transportation intermediaries that did not have a published tariff, bond or other surety,” which are required by the Shipping Act. In addition, the FMC alleged the NVO provided transportation that was “not in accordance with the rates and charges set forth in its published tariff.”