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$1.5 Million Penalty for Shipping Act Violations

Wednesday, October 12, 2016
Sandler, Travis & Rosenberg Trade Report

The Federal Maritime Commission announced Oct. 11 a compromise agreement that will collect a combined $1.5 million in civil penalties from two affiliated vessel-operating common carriers operating roll on/roll off and pure car carrier vessels in the U.S. import and export trades. The two entities also agreed to provide ongoing cooperation with other FMC investigations or enforcement actions with respect to the activities at issue.

According to the FMC, this agreement resolves allegations that over an extended period of time and in numerous U.S. trade lanes these entities acted in concert with other carriers with respect to the transportation of automobiles and other motorized vehicles by RO/RO or specialized car carrier vessels where such agreements had not been filed with the FMC or become effective under the Shipping Act. The carriers also allegedly failed to file space charter agreements or provided transportation under service contracts that had not been filed.

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