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Major Carrier to Pay $1.275 Million Penalty for Shipping Autos Under Unfiled Agreements

Friday, February 14, 2014
Sandler, Travis & Rosenberg Trade Report

The Federal Maritime Commission announced Feb. 12 a compromise agreement with a vessel-operating common carrier based in Japan and its corporate affiliate, which operate pure car carriers and roll-on/roll-off vessels in the U.S. inbound and outbound trades. This agreement imposes $1.275 million in penalties to resolve allegations that over a period of several years and in numerous U.S. trade lanes the two companies acted in concert with other ocean common carriers with respect to the shipment of automobiles and other motorized vehicles by RO/RO or specialized vessels under carrier agreements that had not been filed with the FMC or become effective under the Shipping Act. The compromise also addresses related activities and violations arising under such carrier agreements.

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