FMC ORDERS INVESTIGATION OF HONG-KONG-BASED NVO FOR WRONGDOING
The U.S. Federal Maritime Commission has issued an order of investigation and hearing into the activities of Hudson Shipping (Hong Kong) Ltd., a Hong Kong-based non-vessel operation common carrier, for allegedly violating the 1984 Shipping Act by allowing other non-affiliated consolidators to use its ocean carrier service contracts.
Hudson began operations in 1988. It’s owned and operated by Chi Kwan “Sunny” Ng and his spouse Yin King “Rosa” Fong.
“Hudson benefited not only directly but also indirectly from the successful implementation of its scheme,” the FMC said. “Hudson demanded and received compensation from the NVOCCs for each instance in which the NVOCCs assumed Hudson’s identity and used its service contracts.”
“In addition, as a result of allowing other NVOCCs to use its service contracts, Hudson avoided payment of liquated damages for failure to ship the minimum quantity requires under one service contract,” the agency said.
The FMC’s administrative law judge will make initial decision into Hudson’s alleged wrongdoing on April 7, 2003, and the agency will issue a final decision by Aug. 4, 2003.
Under section 13 of the Shipping Act, a person is subject to a civil penalty of not more than $25,000 for each violation knowingly or willfully made, and not more than $5,000 for each other violation.