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FMC Recovers $334,000 to Settle Alleged Violations by Forwarders, NVOCCs

Wednesday, December 16, 2015
Sandler, Travis & Rosenberg Trade Report

The Federal Maritime Commission announced Dec. 14 the recovery of $334,000 in civil penalties to settle charges that five ocean transportation intermediaries and two unlicensed transport businesses committed various violations of the Shipping Act or FMC regulations.

- A registered NVOCC located in the U.K. paid $80,000 to settle charges that it permitted third parties to access service contracts with an ocean carrier to which they were not signatories or affiliates and that it provided OTI services at rates not in accordance with its NVOCC tariff.

- A licensed forwarder and NVOCC located in North Carolina paid $80,000 to settle charges that it utilized rates limited to certain named accounts in carrier service contracts,  improperly allowed access to its service contracts to another NVOCC, provided OTI services prior to obtaining its OTI license and charged rates to its customers not in accordance with its NVOCC tariff.

- A Florida-based entity paid $60,000 to settle charges that it conducted OTI services without obtaining an FMC license, filing a surety bond or publishing an NVOCC tariff. The terms of the settlement also required the dissolution of this corporation.

- A licensed and bonded NVOCC and forwarder located in Texas paid $35,000 to settle charges that it continued operating as an OTI without a valid qualifying individual for more than one year.

- A licensed and bonded NVOCC and forwarder located in New Jersey paid $32,500 to settle charges that it provided service to unlicensed or unbonded NVOCCs in the shipment of household goods to the Dominican Republic and Haiti.

- A Virginia-based company that specializes in international household relocation services paid $24,000 to settle charges that it continued to conduct OTI services without an FMC license or bond despite receiving written and oral warnings from the FMC.

- A licensed and bonded NVOCC and forwarder located in Texas paid $22,500 to settle charges that it continued operating as an OTI without a valid qualifying individual for more than one year.

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