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FMC Announces Compromise Agreement with NYK Line

January 8, 1998

FEDERAL MARITIME COMMISSION

FMC Announces Compromise Agreement with NYK Line

NR 98-01

Washington, D.C. 20573


CONTACT: VERN W. HILL, DIRECTOR
BUREAU OF ENFORCEMENT AT (202) 523-5783

FOR RELEASE JANUARY 8, 1998

Harold J. Creel Jr., Chairman of the Federal Maritime Commission, announced today that the Commission has entered into a compromise agreement with Nippon Yusen Kaisha ("NYK Line"), an ocean common carrier serving the United States - Far East trades. Under the settlement, NYK Line paid civil penalties in the amount of $425,000 for alleged violations of the Shipping Act of 1984.

Chairman Creel stated: "The compromise agreement announced today is the third with major shipping lines operating in the Transpacific Trades. It follows other enforcement efforts, both informal settlements and formal proceedings, designed to address cargo misdescriptions and other unfair and anticompetitive trading practices within the ocean shipping industry. Our enforcement activities are ongoing as to shippers, cargo intermediaries and carriers alike. The Commission urges the industry to increase its own vigilance in combating rate malpractices in these trades and in requiring adherence by employees and agents to the mandates of the 1984 Act."

The settlement with NYK Line resolved allegations that the carrier violated sections 10(b)(1), 10(b)(3) and 10(b)(4) of the 1984 Act by failing to charge those rates publicly held out to shippers, and by permitting others to obtain transportation at less than applicable rates through false or unfair devices or means, including commodity misdescription, improper equipment substitution practices, and by other service contract abuses. In concluding the above compromise, Respondent did not admit any violations of law.

The compromise agreements resulted from investigations by Area Representatives of the Bureau of Enforcement located in Los Angeles, New Orleans, Seattle and Washington, D.C. Staff attorneys with the Bureau of Enforcement negotiated the agreement.