The U.S. maritime regulator collected a total of $465,000 in civil penalties from the non-vessel-operating common carriers for allegedly violating the Shipping Act or commission regulations.
The U.S. Federal Maritime Commission (FMC) has collected a total of $465,000 in civil penalties from six non-vessel-operating common carriers (NVOCCs) for violations of the Shipping Act or commission regulations.
The penalties resulted from investigations conducted by the FMC’s area representatives in Houston and Seattle, as well as its Washington headquarters. The parties settled and agreed to the penalties without admitting to the violations to the Shipping Act or commission regulations, the FMC said.
The FMC alleged that Golden Padlock of San Gabriel, Calif., and Young-Ko Trans Co. Ltd. in Carson, Calif., willingly and knowingly engaged in an arrangement in which Young-Ko misrepresented to the carrier under its service contract that Golden Padlock was an affiliate and allowed it access to the cheaper contract rates. Golden Padlock agreed to a civil penalty of $50,000, while Young-Ko agreed to pay $75,000.
A joint compromise agreement with DSV Air & Sea Inc. in Clark, N.J., and DSV Ocean Transport A/S of Denmark was reached after the NVOCCs voluntary disclosed that their service descriptions in the liner trade for a period were not in line with their published tariffs. In addition, the FMC said the NVOCCs were misrepresented as affiliates in various service contracts operated by U.S.-based DSV without a qualifying individual for more than a year. DSV agreed to a civil penalty of $175,000.
The FMC reached a compromise agreement with NZS Worldwide, Inc., San Francisco for allegations of knowingly and willfully accepting cargo from one or more ocean transportation intermediaries that did not have a published tariff, bond or other surety as required by the Shipping Act. It was also alleged that the NVOCC provided transportation that was not in line with the rates and charges in its published tariff. NZS agreed to a civil penalty of $50,000.
Lastly, the FMC and Translink Shipping, Inc. in Seattle reached a compromise agreement for the alleged obtainment of transportation at less than applicable rates and charges by improperly using rates contained in service contracts limited to certain shippers for unrelated shipments of cargo. The compromise agreement also alleged that Translink performed services without publishing a tariff showing all of its applicable rates and charges. Translink agreed to a civil penalty of $115,000.
FMC collects civil penalties from six NVOCCs
