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$430,000 In Penalty Payments Collected

June 10, 2015

NR 15-07

Chairman Mario Cordero announced that the Federal Maritime Commission has completed compromise agreements recovering a total of $430,000 in civil penalties. The agreements were reached with six non-vessel-operating common carriers (NVOCCs) and one freight forwarder. The agreed penalties resulted from investigations conducted by the Commission’s Area Representatives in Miami, Houston, Los Angeles, Seattle and Washington D.C. headquarters staff. The parties settled and agreed to penalties, but did not admit to violations of the Shipping Act or the Commission’s regulations.

In making the announcement, Chairman Cordero stated: "Fraud and commercial deception in the international shipping marketplace must be found and vigorously dealt with. These settlement agreements and the penalties collected demonstrate that the Commission remains committed to the difficult task of detecting threats to cargo security and the shipping public, both in the U.S. and in locations abroad."

The compromise agreements are:

Blue Cargo Group LLC.

Blue Cargo Group LLC, dba Blu Logistics, is a licensed NVOCC and freight forwarder headquartered in Miami, FL. It was alleged that Blue Cargo violated section 10(b)(1) of the Shipping Act by knowingly and willfully remitting monetary compensation to the transportation manager of its largest shipper-customer. Blue Cargo made a payment of $105,000 in compromise of this allegation.

Unipac Shipping Inc.

Unipac Shipping is a licensed and bonded NVOCC and freight forwarder based in Diamond Bar, CA. Commission staff alleged that Unipac Shipping violated section 10(a)(1) by obtaining transportation at less than applicable rates by means of accessing service contracts to which Unipac Shipping was not a party; Unipac Shipping also violated section 10(b)(2) by providing transportation other than in accordance with the rates and charges in its published tariff. Under the terms of the compromise, Unipac Shipping paid $75,000.

Hughes International LLC.

Hughes International is a licensed and bonded NVOCC and freight forwarder with offices in Clark, NJ. It was alleged that Hughes International violated section 10(a)(1) by knowingly and willfully obtaining transportation at less than applicable rates by means of improperly allowing third parties to access service contracts to which Hughes was the contract signatory, and by misdescribing commodities under certain service contracts. Under the terms of the compromise, Hughes International paid $75,000.

JHJ International Transportation Co. Ltd.

JHJ International is a tariffed and bonded NVOCC located in Shanghai, PRC. Commission staff alleged that JHJ International violated section 10(a)(1) by knowingly and willfully obtaining transportation at less than applicable rates by misrepresenting the names of shipper accounts under certain service contracts; and that JHJ International also violated section 10(b)(2)(A) by providing transportation other than in accordance with the rates and charges in its published tariff. JHJ International made a payment of $65,000 in compromise of these allegations.

CTS International Logistics Corp., Ltd.

CTS International is a tariffed and bonded NVOCC located in Shanghai, PRC. It was alleged that CTS International violated section 10(a)(1) by obtaining transportation at less than applicable rates by means of accessing service contracts to which CTS International was not a party; and that CTS International also violated section 10(b)(2)(A) by providing transportation other than in accordance with the rates and charges in its published tariff. Under the terms of the compromise, CTS International paid $50,000.

Ri-Time Logistic Corp.

Ri-Time Logistic is a licensed NVOCC located in City of Industry, CA. Commission staff alleged that Ri-Time Logistic violated section 10(a)(1) by knowingly and willfully obtaining transportation at less than applicable rates by means of misdescribing commodities and misdeclaring the names of shipper accounts under certain service contracts. Under the terms of the compromise, Ri-Time Logistic paid $35,000.

C.H. Robinson Project Logistics, Inc.

C.H. Robinson Project Logistics is a licensed and bonded freight forwarder located in Houston TX. It was alleged that C.H. Robinson Project Logistics continued operating as an ocean transportation intermediary without a valid Qualifying Individual for more than one year. C.H. Robinson Project Logistics made a payment of $25,000 in compromise of this allegation.