The US Federal Maritime Commission completed compromise agreements with eight non-vessel-operating common carriers (NVOCC), recovering a total of $618,000 in civil penalties. The agreed penalties resulted from investigations by the Commission’s Area Representatives in Houston, and New York/New Jersey, and by Washington D.C. headquarters staff.
The parties settled and agreed to penalties, but did not admit to violations of the Shipping Act or Commission regulations.
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Namely, compromise agreements were entered with Blue Cargo Group, LLC, Miami, FL, and Trans Orient Express, Inc., Los Angeles, CA, both licensed NVOCCs; and with Bondex Logistics, Inc., a registered NVOCC based in the People’s Republic of China.
For the above, the Federal Maritime Commission said that “each respondent knowingly and willfully obtained transportation at less than applicable rates and charges by improperly utilizing rates contained in service contracts limited to certain named shipper accounts for unrelated shipments of cargo.”
The agreement with Bondex Logistics also alleged that it provided service in the liner trade that was not in accordance with its published tariff.
The agreement with Jiangsu Feiliks alleged that the company knowingly allowed another NVOCC to access its service contracts and unlawfully permitted a non-contract party to enjoy the benefits of service contracts contrary to the terms of its contract with the respective ocean common carrier.
In addition, the agreement with North Star World Trade Service alleged that the company operated without a Qualifying Individual for more than year.
Separate agreements with licensed NVOCCs Walmay Logistics, Diamond Bar, Prime Shipping International, City of Industry, and SWAT, alleged that these companies knowingly obtained transportation at less than applicable rates and charges by unlawfully accessing service contracts to which they were not a party. The agreements also allege that the companies provided transportation in the liner trade that was not in accordance with its published tariff.