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FMC Collects $962,500 In Penalty Payments

Friday, December 16, 2016
Sandler, Travis & Rosenberg Trade Report

The Federal Maritime Commission announced Dec. 15 that it has completed the following compromise agreements recovering a total of $962,500 in civil penalties.

- A registered foreign-based non-vessel-operating common carrier, a licensed NVOCC, and a licensed NVOCC and ocean freight forwarder collectively paid $300,000 to settle charges concerning the NVOCCs’ access to certain contracts between the carrier and several other carriers to which neither NVOCC was a party.

- A licensed NVOCC and a licensed and bonded ocean freight forwarder jointly paid $220,000 to settle charges that the NVOCC improperly accessed service contracts to which it was not a signatory and provided service in the liner trade that was not in accordance with the rates and charges in its published tariffs. It was also alleged that both entities operated without a qualifying individual for more than a year.

- A registered foreign-based NVOCC and a licensed U.S. NVOCC jointly paid $180,000 to settle charges that they knowingly and willfully improperly used rates limited to certain named accounts in their service contracts for cargo of other accounts and that they allowed other ocean transportation intermediaries to access certain of their service contracts to which those OTIs were not signatories or affiliates.

- A registered foreign-based vessel-operating common carrier paid $157,000 to settle charges that it participated under certain space charter agreements with other carriers that had not been filed with the FMC or had not yet become effective.

- A registered foreign-based NVOCC paid $75,000 to settle charges that it knowingly and willfully accessed service contracts to which it was not a signatory. It was also alleged that the NVOCC provided service in the liner trade and charged its NVOCC customers rates and charges that were not in accordance with its published tariff.

- A licensed NVOCC paid $30,000 to settle charges that it operated without a QI for more than a year.

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