Shippers Pay $3.7 Million Over Faulty Container Weight Disclosures
Farrell Lines and Damco paid $3.7 million in civil penalties to the U.S. as a result of the companies' use of inauthentic shipment weight disclosures in violation of a contract with the government, said the U.S. Attorney's Office for the…
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Southern District of Illinois in a news release (here). The case involved a contract between Farrell, its affiliate Damco and the U.S. Transportation Command that called for shipping services for government cargo in and out of Afghanistan, said the USAO. "The price of the contract was based almost exclusively on the weight of the shipments, and documented cargo weights, consisting of 'weight tickets' issued by a certified commercial scale for each cargo container, needed to be included with billing invoices to the Government," it said. Instead of using "authentic" weight tickets, Damco employees "recreated" 563 tickets to support the billing invoices, said the USAO.