NVOs pay $618,000 for Shipping Act violations

The Federal Maritime Commission has completed compromise agreements with eight non-vessel-operating common carriers, resulting in the recovery of $618,000 in civil penalties.    The U.S. Federal Maritime Commission has completed compromise agreements with eight non-vessel-operating common carriers, resulting in the recovery of $618,000 in civil penalties. 
   Miami-based Blue Cargo Group and Trans Orient Express of Los Angeles, both licensed NVOs, along with Bondex Logistics, a registered NVO based in China, allegedly obtained with knowledge transportation at less than applicable rates and charges by improperly using service contract rates that were limited to certain shipper accounts for unrelated cargo. 
   The compromise agreement with Bondex Logistics also alleged that the NVO provided service in the liner trade that was not in line with its published tariff.
   In another compromise agreement, Jiangsu Feiliks International Logistics, a registered NVO located in China, was alleged to have knowingly and willfully allowed another NVO to unlawfully access its ocean carrier service contracts.
   The FMC also reached compromise agreements with licensed NVOs Walmay Logistics of Diamond Bar, Calif.; Prime Shipping International in the City of Industry, Calif.; and SWAT International of Jamaica, N.Y., for allegedly obtaining transportation at less than applicable rates and charges by unlawfully accessing service contracts to which they were not a party. In addition, the compromise agreements alleged that each NVO provided transportation in the liner trade that was not in line with their respective published tariffs.
   Lastly, the FMC said a compromise agreement was reached with North Star World Trade Service of Mendota Heights, Minn., a licensed NVO and freight forwarder, for allegedly operating without a qualifying individual for more than a year.
   The individual compromise agreement amounts by NVO are Blue Cargo ($75,000), Trans Orient Express ($70,000), Bondex Logistics ($73,000), Jiangsu Feiliks International Logistics ($85,000), Walmay Logistics ($75,000), Prime Shipping ($120,000), SWAT International ($85,000), and North Start World Trade Service ($35,000).
   “The parties settled and agreed to penalties, but did not admit to violations of the Shipping Act or commission regulations,” the FMC said.