FMC Reaches $617,500 Settlement with NVOCCs and Freight Forwarders Over Shipping Act Allegations
Nine non-vessel-operating common carriers (NVOCCs) and freight forwarders will pay $617,500 in civil penalties as part of an agreement reached with the Federal Maritime Commission related to allegations of violations of the Shipping Act of 1984, the FMC said. "The parties settled and agreed to penalties, but did not admit to violations of the Shipping Act," the agency said.
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The agreements include the following companies:
- East-West Logistics Inc.: It was alleged that East-West Logistics violated the Shipping Act by knowingly and willfully obtaining ocean transportation for property at less than the rates and charges that would otherwise be applicable by misdescribing the commodities shipped under certain service contracts, and by improperly obtaining reduced rates limited to certain named accounts under certain service contracts. East-West Logistics made a payment of $55,000.
- Versatile International Corp. dba King Yang Shipping: The FMC alleged that Versatile violated the Shipping Act by engaging in cargo misdescription activities involving inbound shipments to the West Coast and by providing service that was not in accordance with the rates or charges contained in Respondent’s NVOCC tariff. Versatile made a payment of $55,000.
- Whale Logistics (Shanghai) Co. Ltd.: Whale Logistics was alleged to violate the Shipping Act by obtaining transportation under service contracts to which Whale Logistics (Shanghai) was not a party and by providing transportation in the liner trade that was not in accordance with the rates and charges set forth in its published tariffs. Whale Logistics (Shanghai) paid $70,000.
- Koil, Inc. dba VShip Co.:The FMC alleged that Koil transported cargo for the account of ocean transportation intermediaries, none of which had a published tariff or bond, in violation of the Shipping Act, and provided service to its customers that was not in accordance with the rates or charges contained in its published NVOCC tariff. Koil paid $75,000.
- China International Freight Co. Ltd.: The FMC alleged that China International Freight violated the Shipping Act by obtaining transportation at less than the rates or charges otherwise applicable by falsely declaring the cargo to be shipped on behalf of a named account in the service contract. China International Freight made a payment of $80,000.
- UTi, United States, Inc.: UTi United States submitted a voluntary self-disclosure to the Commission disclosing potential violations the Shipping Act arising from a failure to maintain a general tariff covering all points or ports on its own routes and on any through transportation routes established. Based on the company’s self-disclosure and remedial measures voluntarily undertaken, a compromise agreement was reached under which UTi United States paid $140,000.
- Top Shipping Logistics Co. Ltd., City Ocean Logistics Co. Ltd., and City Ocean International Inc.: The agency alleged that Top Shipping, City Ocean Logistics, and City Ocean International obtained ocean transportation for property at less than the rates and charges that would otherwise be applicable by providing a false U.S. inland destination point for inbound shipments, and by allowing City Ocean Logistics to access service contracts to which City Ocean Logistics was not a signatory. They made a payment of $142,500.