The Federal Maritime Commission has reached seven compromise agreements recovering a total of $617,500 in civil penalties.
The agreements were reached with nine non-vessel-operating common carriers (NVOCCs) and freight forwarders located in the U.S. and abroad. The agreed penalties resulted from investigations conducted by the FMC’s area representatives in the Seattle, South Florida, Los Angeles, New York and Washington, D.C., headquarters offices. Bureau of Enforcement staff attorneys negotiated the compromise agreements. The parties settled and agreed to the penalties, but did not admit to violations of the Shipping Act.
In making the announcement, Federal Maritime Commission Chairman Mario Cordero stated: “The commission remains committed to protecting the shipping public from unfair and deceptive practices.”
The compromise agreements are:
- East-West Logistics Inc.: East-West Logistics Inc. is a licensed NVOCC located in La Mirada, Calif. It was alleged that East-West Logistics violated the Shipping Act by obtaining ocean transportation for property at less than the rates and charges that would otherwise be applicable by misdescribing the commodities to be shipped; the company is to have also improperly obtained reduced rates limited to certain named accounts under certain service contracts. In addition, East-West Logistics allegedly provided services other than at the rates and charges in its NVOCC tariff. East-West Logistics made a payment of $55,000 in compromise of these allegations.
- Versatile International Corp. dba King Yang Shipping: Versatile International Corp. is a licensed NVOCC based in El Monte, Calif. Commission staff alleged that Versatile knowingly and willfully violated the Shipping Act by engaging in cargo misdescription activities involving inbound shipments to the West Coast; it also allegedly provided service that was not in accordance with the rates or charges contained in Respondent’s NVOCC tariff. Versatile made a payment of $55,000 in compromise of these allegations.
- Whale Logistics (Shanghai) Co. Ltd.: It was alleged that Whale Logistics (Shanghai) — a foreign-based, bonded NVOCC with offices in Shanghai, China — the Shipping Act by knowingly and willfully obtaining transportation under service contracts to which Whale Logistics (Shanghai) was not a party; it also caused a violation by providing transportation in the liner trade that was not in accordance with the rates and charges set forth in its published tariffs. Whale Logistics (Shanghai) paid $70,000 in compromise of these charges.
- Koil, Inc. dba VShip Co.: The licensed and bonded NVOCC based in Long Island City, N.Y., allegedly transported cargo for the account of ocean transportation intermediaries, none of which had a published tariff or bond; the company also allegedly provided service to its customers that was not in accordance with the rates or charges contained in its published NVOCC tariff. Under the terms of the compromise, Koil paid $75,000.
- China International Freight Co. Ltd.: The Taipei-based tariffed and bonded foreign-based NVOCC was alleged to have obtained transportation at less than the rates or charges otherwise applicable by falsely declaring the cargo to be shipped on behalf of a named account in the service contract. China International Freight made a payment of $80,000 in compromise of these allegations.
- UTi, United States, Inc.: UTi, United States, Inc. is a licensed NVOCC and freight forwarder headquartered in Long Beach, Calif. UTi, United States, submitted a voluntary self-disclosure to the commission disclosing potential violations of 8(a)(1) of the Shipping Act arising from a failure to maintain a general tariff covering all points or ports on its own routes and on any through transportation routes established. Based on the company’s self-disclosure and remedial measures voluntarily undertaken, a compromise agreement was reached under which the company paid $140,000.
- Top Shipping Logistics Co. Ltd., City Ocean Logistics Co. Ltd., and City Ocean International Inc.: Top Shipping Logistics Co. Ltd is a bonded NVOCC based in Qingdao, China; City Ocean Logistics Co., Ltd. is a bonded NVOCC located in Shenzhen, China; and City Ocean International is a bonded and licensed NVOCC and freight forwarder based in Diamond Bar, Calif.. Commission staff alleged that Top Shipping, 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 providing a false U.S. inland destination point for inbound shipments; the parties were also in violation by allowing City Ocean Logistics to access service contracts to which City Ocean Logistics was not a signatory. In addition, Top Shipping, City Ocean Logistics and City Ocean International allegedly provided transportation in the liner trade that was not in accordance with the rates and charges set forth in their published tariffs. The parties made a payment of $142,500 in compromise of these allegations.
