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$840,000 in Penalties for Violations of Shipping Act or FMC Regulations

Tuesday, May 17, 2016
Sandler, Travis & Rosenberg Trade Report

The Federal Maritime Commission announced May 12 that it has completed compromise agreements recovering a total of $840,000 in civil penalties from five ocean transportation intermediaries.

- A registered non-vessel-operating common carrier with its principal office in Hong Kong paid $300,000 to settle charges that it (a) misrepresented cargo to be that of certain named shippers to obtain the benefit of lower rates applicable under a service contract and (b) provided OTI services to its customers at rates not in accordance with its NVOCC tariff.

- A licensed and bonded NVOCC based in Georgia paid $350,000 to settle charges that it improperly obtained access to numerous service contracts to which it was not a signatory and provided transportation to its customers at rates not in accordance with its NVOCC tariff.

- A licensed NVOCC and freight forwarder located in Texas paid $80,000 to settle charges that it unfairly utilized rates limited to certain named accounts under a service contract.

- A licensed freight forwarder and NVOCC based in New York paid $60,000 to settle charges that it improperly obtained access to service contracts to which it was not a party.

- A licensed and bonded NVOCC and freight forwarder located in New York paid $50,000 to settle charges that it improperly obtained access to a service contract to which it was not a party and provided transportation to its customers at rates not in accordance with its NVOCC tariff.

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