United Arab Shipping Co. agreed to pay $537,000 to the FMC to settle rebate allegations.
The U.S. Federal Maritime Commission said it has completed compromise agreements, resulting in the recovery of more than $1.2 million in civil penalties from United Arab Shipping Co. and seven non-vessel-operating common carriers.
The parties settled and agreed to penalties, but did not admit to violations of the Shipping Act or the commission’s regulations. Under the agreements:
- UASC paid $537,500 to the FMC, which “alleged that UASC violated 46 U.S.C. 41104(1) by unlawfully rebating to its NVO customer, Falcon Maritime and Aviation Inc., a portion of the applicable service contract rate in the form of an administrative fee not identified in the service contract, and for which no services were provided. UASC also violated 46 U.S.C. 41104(2) by providing transportation not in accordance with the rates and charges in its published tariff.”
- Falcon Maritime and Aviation, a licensed NVO based in Jamaica, N.Y., paid $85,000. It was alleged that the NVO violated 46 U.S.C. 41102(a) by unlawfully obtaining rebates.
- City Ocean Logistics Co., Ltd., a bonded NVO located in Shenzhen, China; and City Ocean International and CTC International, licensed NVOs and freight forwarders co-located in Diamond Bar, Calif. paid $325,000, and the OTI license of CTC will be surrendered. Commission staff alleged City Ocean Logistics and City Ocean International knowingly and willfully obtained ocean transportation for property at less than the rates and charges that would otherwise be applicable by improperly utilizing rates limited to certain “named accounts” in service contracts, and through the collection of forwarder compensation on export shipments in which City Ocean Logistics acted as the NVO. In addition, CTC International unlawfully collected forwarder compensation on shipments in which City Ocean Logistics, City Ocean International and/or CTC International had a beneficial interest. City Ocean Logistics, City Ocean International and CTC International also provided transportation in the liner trade that was not in accordance with the rates and charges set forth in their published tariffs.
- Oriental Logistics Group, a tariffed and bonded NVO located in Taipei, Taiwan, paid $100,000. Commission staff alleged that Oriental Logistics Group violated 46 U.S.C. 41102(a) by knowingly and willfully obtaining transportation at less than applicable rates by misrepresenting the names of shipper accounts under one of its service contracts, and by improperly describing cargo under such contract. Oriental Logistics Group also violated 46 U.S.C. 41104(2) by providing transportation not in line with the rates and charges in its published tariff.
- Hyundai Logistics (USA), a tariffed and bonded NVO and forwarder located in La Mirada, Calif., paid $100,000. Commission staff alleged that the company violated 46 U.S.C. 41102(a) by knowingly and willfully obtaining transportation at less than applicable rates by means of improperly allowing third parties to access service contracts to which Hyundai Logistics (USA) was the contract signatory.
- Sea Gate Logistics is a licensed NVO and forwarder based in Valley Stream, N.Y., paid $80,000. Commission staff alleged that Sea Gate Logistics violated 46 U.S.C. 41102(a) by knowingly and willfully obtaining transportation at less than applicable rates by means of improperly obtaining access to service contracts to which the company was not the contract signatory. Sea Gate also violated 46 U.S.C. 41104(2) by providing transportation not in line with the rates and charges in its published tariff.
