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FMC Levies $2.3 Million in Civil Penalties for Shipping Act Violations

Thursday, December 26, 2013
Sandler, Travis & Rosenberg Trade Report

The Federal Maritime Commission announced Dec. 23 that it has completed compromise agreements with two common carriers operating pure car carriers and roll on/roll off vessels in U.S. inbound and outbound trades recovering a total of $3,425,000 in civil penalties for alleged violations of the Shipping Act of 1984. The compromise agreements resolve allegations that these two carriers violated section 10(a) and other provisions of the Shipping Act by acting in concert with other ocean common carriers with respect to the shipment of automobiles and other motorized vehicles by RO/RO or specialized car carrier vessels, where such agreement(s) had not been filed with the Commission or become effective under the Shipping Act. FMC staff alleged that these practices persisted over a period of several years and involved numerous U.S. trade lanes, including from and/or to the Far East, Europe, the Middle East and South America. In concluding the compromise agreements, the two carriers agreed to provide cooperation with other FMC investigations or enforcement actions with respect to these types of activities. 

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