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Ocean Shipping Violation Penalties Increased

Thursday, June 30, 2016
Sandler, Travis & Rosenberg Trade Report

The Federal Maritime Commission has issued an interim final rule adjusting the maximum amounts of each statutory civil monetary penalty subject to FMC jurisdiction, as follows. These updated amounts will apply to all penalties, including those whose associated violation pre-dated the update, that are assessed after Aug. 1. The FMC was required to make these adjustments pursuant to a recent law mandating that federal agencies make a one time “catch-up” adjustment to their penalty amounts to account for inflation and make subsequent inflationary adjustments each year.

Violation

Maximum penalty < Aug. 1

Maximum penalty > Aug. 1

Adverse impact on U.S. carriers by foreign shipping practices

$1,600,000

$1,978,690

Knowing and willful violation of 1984 Shipping Act or FMC regulation or order

$45,000

$56,467

Violation of 1984 Shipping Act or FMC regulation or order not knowing and willful

$9,000

$11,293

Operating in foreign commerce after tariff suspension

$80,000

$112,934

Failure to provide required reports

$9,000

$8,908

Adverse shipping conditions

$1,600,000

$1,781,560

Operating after tariff or service contract suspension

$80,000

$89,078

Failure to establish financial responsibility for non-performance of transportation

$9,000

$22,500

Failure to establish financial responsibility for death or injury

$9,000

$22,500

Making false claims

$9,000

$10,781

Giving false statement

$9,000

$10,781

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