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FMC News: Penalty Increases, Freight Forwarder Regs, OTI Licenses, Maritime Agreements

Thursday, February 07, 2019
Sandler, Travis & Rosenberg Trade Report

Penalties Increased. Effective Jan. 15 the Federal Maritime Commission increased for inflation the maximum civil monetary penalty amounts for the following regulatory or statutory violations.

- adverse impact on U.S. carriers by foreign shipping practices: from $2,052,107 to $2,103,861

- violation of 1984 Shipping Act or FMC regulation or order issued thereunder: from $58,562 to $60,039 for knowing and willful violations, from $11,712 to $12,007 for others

- operating in foreign commerce after tariff suspension: from $117,125 to $120,079

- failure to provide required reports: from $9,239 to $9,472

- adverse shipping conditions: from $1,847,663 to $1,894,261

- operating after tariff or service contract suspension: from $92,383 to $94,713

- failure to establish financial responsibility for non-performance of transportation or death or injury: from $23,335 to $23,924

- making false claims or giving false statements in violation of Program Fraud Civil Remedies Act: from $11,181 to $11,463

Freight Forwarder Regulations. The FMC has reopened through Feb. 22 the period for public comment on a proposed rule that would amend FMC rules governing licensing, financial responsibility requirements, and general duties for ocean transportation intermediaries. The FMC has said the proposed changes, which are detailed here, are mainly administrative and procedural.

OTI License Revocations and Applications. The FMC has given notice that the following ocean transportation intermediary licenses have been revoked. A revocation may occur after a license is surrendered voluntarily by the OTI or for failure to maintain a valid bond.

- license #025810N: ACS USA LLC, City of Industry, CA

- license #027212NF: AGL Logistics LLC, San Juan, PR

- license #024612F: AJ Freight Services Inc., Miami, FL

- license #3231NF: American Cargo International LLC, Miami, FL

- license #021250F: America-Westafrica Trade Link Inc., Cary, NC

- license #2492NF: DEKA Associates Inc. dba DEKA International, San Francisco, CA

- license #014662F: Janel Group Inc., Lynbrook, NY

- license #013562N: Leader Int’l Express Corp., Fort Lee, NJ

- license #3604NF: Mid-Atlantic Purveyors Inc. dba Mid-Atlantic International Freight Forwarders, Miami, FL

- license #024152N: O.K. Cargo Corp. dba GVUSA Logistics, Miami, FL

- license #023583N: Promise Lines Inc., Bowie, MD

- license #023691NF: Sintra USA LLC, Springfield, NJ

- license #022064N: St. Blue & Co. Inc. dba AP Logistics, Carson, CA

- license #026445N: Stewart Global Logistics LLC, Houston, TX

- license #022772NF: Transoceanic Projects Development Company Inc. dba AKL Shipping Company, Houston, TX

- license #0268670N: Universal Freight and Logistics LLC, Doral, FL

In addition, the FMC has provided notice that the following have filed applications (a) for OTI licenses as non-vessel-operating common carriers and/or ocean freight forwarders or (b) to amend an existing OTI license or the qualifying individual for a licensee.

- ANSA MCAL (U.S.) Inc., Miami, FL (QI change)

- Caliber Cargo Logistics Inc., Corona, CA (new NVO license)

- Cargoprime LLC dba AP Logistics, Los Angeles, CA (new NVO and OFF license)

- Core Freight Inc., Great Neck, NY (QI change)

- Deluxe Shipping Inc., Brooklyn, NY (QI change)

- Egreen Transport Corporation dba Clipper Transport, Rancho Cucamonga, CA (QI change)

- EZ Logistics LLC, Englewood Cliffs, NJ (QI change)

- Grupo JL Logistics LLC, Miami, FL (new NVO and OFF license)

- Honour Lane Logistics (USA) Inc., City of Industry, CA (QI change)

- Interocean Cargo Logistics, Santa Ana, CA (adding trade name Interport Cargo Logistics)

- JSL Logistics Inc., Cerritos, CA (new NVO and OFF license)

- LAM USA International Transport Inc., Miami, FL (QI change, name change to LAM USA International Transport LLC, and business structure change to LLC)

- Mc Baker International Inc., Houston, TX (QI change)

- Navia USA LLC dba Consol Alliance, Fort Lauderdale, FL (QI change)

- Pantos USA Inc., Englewood Cliffs, NJ (QI change)

- Practical Shipping Corp., Middle Island, NY (adding trade name Patco Shipping)

- Siman Logistics Inc., Bensenville, IL (QI change)

- SNA Cargo Inc., New York, NY (new NVO and OFF license)

- Tazmanian Freight Forwarding Inc., Middleburg Heights, OH (QI change)

- Waterview Logistics LLC, Cedar Park, TX (adding QI)

- Xpress Freight Services Inc., Doral, FL (adding OFF services)

- Zoom Ocean Freight LLC, Miami, FL (QI change)

Maritime Agreements Filed. The FMC has issued notice that the following new or amended agreements have been filed. Interested parties may submit comments by Feb. 18.

LGL/Glovis Space Charter Agreement (Hyundai Glovis Co. Ltd. and Liberty Global Logistics LLC) – The amendment adds Qatar, Iraq, and India to the scope of the agreement; revises Article 5.1 to replace the ad hoc space chartering arrangement with a more defined reciprocal space chartering arrangement; and revises the duration and termination of the agreement.

Digital Container Shipping Association Agreement (Maersk Line A/S; Hapag-Lloyd AG; CMA CGM S.A.; MSC Mediterranean Shipping Company S.A.; and Ocean Network Express Pte. Ltd.) – The agreement authorizes the parties to form a non-profit corporate entity through which they can discuss, exchange information, and agree on the development, establishment, standardization, and harmonization of terminology, guidelines, and standards for information technology used in any aspect of the movement of containers or services ancillary thereto.

International Vessel Operators Dangerous Goods Association Agreement (Evergreen Line Joint Service Agreement; Hapag-Lloyd AG; Hyundai Merchant Marine Co., Ltd.; Independent Container Line, Ltd; Maersk Line A/S; Matson Navigation Company, Inc.; Ocean Network Express Pte. Ltd.; Orient Overseas Container Line Limited; Tampa Bay International Terminals, Inc.; The National Shipping Company of Saudi Arabia d/b/a Bahri; Tropical Shipping & Construction Co., Ltd.; Wallenius Wilhelmsen Ocean AS; Wan Hai Lines Ltd.; Yang Ming Marine Transport Corporation; APL C. Pte. Ltd.; Crowley Caribbean Services LLC; Crowley  Latin America Services, LLC; COSCO Shipping Lines Co., Ltd.; Bermuda Container Line Ltd.; Seaboard Marine Ltd.; and the Klinge Corporation) – The amendment deletes Alianca Navegacao E Logistica Ltda; Atlantic Container Line AB; Hamburg Süd; Kawasaki Kisen Kaisha Ltd.; Mitsui O.S.K. Lines, Ltd.; and Nippon Yusen Kaisha Line as parties to the agreement, adds Ocean Network Express Pte. Ltd. as a party, and adds Klinge Corporation and Tampa Bay International Terminals Inc. as associate parties.

Maersk Line/APL Slot Exchange Agreement (American President Lines, LLC; APL Co. Pte. Ltd.; and Maersk Line A/S) – The amendment revises the amount of space being chartered by Maersk and revises the name of one of the APL entities that is a party to the agreement.

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