FMC settles four investigations for $ 625,000
The Federal Maritime Commission announced four compromise agreements in which an ocean carrier and intermediaries agreed to pay a total of $625,000 in civil penalties for alleged violations of the Shipping Act of 1984.
China Shipping Container Line, headquartered in Shanghai and controlled by the government of the People's Republic of China, agreed to pay $440,000 to settle alleged violations involving more than one thousand shipments over four years. These alleged violations included: (1) providing transportation services to intermediaries that did not have tariffs, licenses, or bonds as required by the statute; (2) misdescribing cargo they shipped; (3) allowing use of service contracts by persons who were not parties to those contracts; and (4) providing transportation that was not in accordance with the rates and charges set forth in published tariffs.
A.T.I. U.S.A. Inc., a licensed and bonded NVOCC and freight forwarder based in Elizabeth, New Jersey, paid $115,000 in civil penalties to settle allegations that it misdeclared the measurements of certain shipments of motor vehicles and permitted use of service contracts by persons who were neither signatories nor affiliates to those contracts.
Other licensed and bonded NVOCC's MT Global Freight Solutions Inc. of Grapevine, Texas and Cosa Freight Inc. of Pomona, California. Cosa Freighteach aslo made payments of $35,000 pursuant to compromise agreements.
Federal Maritime Commission Chairman Richard A. Lidinsky, Jr. praised the Commission's Area Representatives and Bureau of Enforcement for their hard work protecting competition and the shipping public: "These penalties should serve as a reminder to any carriers or intermediaries who may be tempted to disregard the Commission's rules against unfair or deceptive practices. The Federal Maritime Commission's team on the front lines will be vigilant in protecting the emerging green shoots of recovery in the ocean shipping industry, international trade, and the larger economy."
Although the settling parties paid penalties, they did not admit to violations of the FMC Act or the Commission's regulations.
