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FMC Announces Compromise Agreements

July 9, 2003

Federal Maritime Commission
Washington, D.C. 20573

FMC ANNOUNCES COMPROMISE AGREEMENTS

NR 03 - 05

FOR RELEASE: July 9, 2003

 

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

The Federal Maritime Commission today announced eleven compromise agreements recovering civil penalties in an aggregate amount of $700,000. The agreements were reached with a vessel-operating common carrier ("VOCC"), a passenger-vessel operator ("PVO") and ocean transportation intermediaries ("OTIs"), acting both as non-vessel-operating common carriers ("NVOCCs") and freight forwarders. The compromise agreements are:

Alspac Miami Corporation and Alspac Transportes Internationales & Agenciamento, Ltda.
Alspac Miami Corporation located in Miami, FL and Alspac Transportes Internationales & Agenciamento, Ltda. of Sao Paulo, Brazil ( jointly "Alspac"), were alleged to have operated as a freight forwarder and NVOCC in the trades between the United States and Brazil without publishing a tariff, obtaining a license and furnishing the requisite proof of insurance in violation of sections 8(a) and 19 of the Shipping Act of 1984 ("1984 Act"). In compromise of these allegations, Alspac made a payment of $25,000.

Dynalink Systems, Inc. Dynalink Systems, Inc. ("Dynalink") is a NVOCC located in Inglewood, CA. It was alleged that Dynalink violated sections 10(a)(1), 10(b)(1) and 10(b)(2)(A) of the 1984 Act by obtaining transportation of property at less than the applicable service contract rates and charges through misdescription of commodities, accessing service contracts to which it was not signatory and permitting non-signatory parties to access its service contracts and providing transportation services not in accordance with the rates, charges and descriptions of commodities set forth in its published tariff. In compromise of these allegations, Dynalink paid the sum of $40,000.

Embassy Cargo S.p.A., Embassy Cargo Inc. and Embassy Cargo NJ, Inc. Embassy Cargo S.p.A., is incorporated in Italy. Its U.S. affiliates are Embassy Cargo Inc., Rosedale, NY, a licensed NVOCC, and Embassy Cargo NJ Inc. located in Skillman, NJ (collectively the "Embassy Cargo companies"). It was alleged that the Embassy Cargo companies violated sections 10(a)(1), 10(b)(1), 10(b)(2), 10(b)(11) and 19 of the 1984 Act by executing and accessing service contracts without status as lawful signatories thus obtaining transportation at less than the proper rates and charges, by providing OTI services without a license and by providing OTI services to an entity which did not have a tariff and evidence of financial security. Under the terms of the compromise, the Embassy Cargo companies paid the sum of $75,000.

Famous Target Logistics, Inc. Famous Target Logistics, Inc. ("Famous Target") is a freight transportation company located in Jamaica, NY. It was alleged that Famous Target violated sections 8(a)(1), 10(a)(1), 19(a) and 19(b)(1) of the 1984 Act by obtaining or attempting to obtain ocean transportation at less than applicable rates and charges by utilizing the name and license number of a non-related entity to enter into service contracts and offer ocean transportation services to the public, and by operating as an OTI without license, tariff or bond. In compromise of these allegations, Famous Target made a payment in the amount of $20,000.

Glacier Bay Park Concessions, Inc. and Glacier Bay Marine Services, Inc. Glacier Bay Park Concessions, Inc. and Glacier Bay Marine Services, Inc. dba Glacier Bay Cruises ("Glacier Bay") is a PVO located in Seattle, WA offering cruises through the Pacific Northwest and Alaska . It was alleged that, for the period August 5 to September 6, 2002,Glacier Bay arranged, offered, advertised and provided passage on vessels embarking passengers from a United States port, without having a valid Certificate of Financial Responsibility for Indemnification of Passengers for Nonperformance of Transportation from the Commission, in violation of section 3(a) of Public Law 89-777, 46 U.S.C. app. ยง 817(e). In compromise of this allegation, Glacier Bay paid the sum of $20,000.

Gramter International (U.S.A.) Co., Ltd. Gramter International (U.S.A.) Co., Ltd. ("Gramter") is a licensed OTI based in Inglewood, CA. It was alleged that Gramter violated section 10(a)(1) of the 1984 Act by obtaining transportation at less than applicable rates and charges by accessing service contracts for which it was a non-signatory. Under the terms of the compromise, Gramter made a payment of $45,000.

JJB Trucking Service Corporation. JJB Trucking Service Corporation ("JJB Trucking") is a freight transportation company located in Elizabeth, NJ. It was alleged that JJB Trucking violated section 10(a)(1) of the 1984 Act by obtaining transportation at less than applicable charges by entering into service contracts without status as a lawful NVOCC. It also was alleged that JJB Trucking violated sections 8(a)(1), 19(a) and 19(b)(1) of the 1984 Act offering ocean transportation services to the public and provided OTI services without a license, tariff or bond. JJB Trucking paid $20,000 in compromise of these allegations.

Orient Star Transport International Ltd. Orient Star Transport International Ltd. ("Orient Star") is a NVOCC located in Hong Kong, PRC. It was alleged that Orient Star violated sections 10(a)(1), 10(b)(1) and 10(b)(2)(A) of the 1984 Act by obtaining transportation at less than applicable rates and charges by misdescription of commodities shipped, by allowing non-signatory entities to access its service contracts and by providing ocean transportation services not in accordance with the rates and charges in its published tariff. Pursuant to the compromise agreement, Orient Star made a payment of $45,000.

Rich Shipping Company Limited, Rich Shipping (USA), Inc. and Cargo Management International. Rich Shipping Company Limited ("Rich") is a tariffed and bonded NVOCC located in Hong Kong, PRC. Rich Shipping (USA), Inc. ("Rich USA"), a corporate subsidiary of Rich, is a licensed OTI operating as a freight forwarder located in Monterey Park, CA. Cargo Management International ("CMI"), owned and operated by an employee/consultant of Rich USA, was a licensed NVOCC located in Gardena, CA. It was alleged that Rich violated sections 10(a)(1), 10(b)(2)(A) and 10(b)(11) by failing to meet minimum quantity commitments with respect to certain service contracts, by providing ocean transportation services not in accordance with its published tariffs and by accepting from or transporting cargo for the accounts of OTIs without license, tariffs or bonds. It was alleged that Rich USA violated sections 8(a) and 19 of the 1984 Act by providing NVOCC services without license, tariff or bond. Also, it was alleged that CMI violated sections 10(a)(1) and 10(b)(2)(A) of the 1984 Act and certain provisions of the Commissions regulations found at 46 C.F.R. pt. 515, by unlawfully accessing service contracts to which it was not signatory, by providing ocean transportation services not in accordance with its published tariffs and by providing incorrect or misleading information in forms filed with the Commission. In compromise of these allegations, CMI ceased operation as an OTI and surrendered its OTI license to the Commission and these companies, collectively, made a payment in the amount of $300,000.

Shanghai Pudong Int'l Transportation Co., Ltd. and Pudong Trans U.S.A., Inc. Shanghai Pudong Int'l Transportation Co., Ltd. ("Shanghai Pudong") is a tariffed and bonded NVOCC located in Shanghai, PRC and Pudong Trans U.S.A., Inc. ("Pudong Trans") is a licensed NVOCC located in El Monte, CA. It was alleged that Shanghai Pudong, and its subsidiary Pudong Trans, violated sections 10(a)(1) and 10(b)(1) of the 1984 Act by obtaining transportation services at less than applicable rates and charges, by unlawfully accessing service contracts to which they were not signatories or affiliates, by allowing non-signatory entities to access their service contracts, by misdescribing commodities to the ocean common carrier and by providing ocean transportation services at other than the rates or charges provided in published tariffs. Shanghai Pudong and Pudong Trans made a payment of $70,000 in compromise of these allegations.

Tropical Shipping & Construction Co., Ltd. and Tropical Shipping International. Tropical Shipping & Construction Co., Ltd. ("Tropical") is a VOCC located in Riviera Beach, FL. Tropical Shipping International ("Tropical International"), a corporate subsidiary of Tropical, is a licensed NVOCC located in Opa Locka, FL. It was alleged that Tropical and Tropical International violated sections 10(b)(1) and 10(b)(11) by providing ocean transportation services at less than the rates and charges shown in their respective tariffs and by accepting and transporting cargo for the account of OTIs that did not have tariffs and evidence of financial security. Further it was alleged that Tropical violated section 10(b)(12) of the 1984 Act by entering into service contracts with OTIs that did not have required tariffs and bonds. In compromise of these allegations the Tropical companies made a payment of $40,000.

In concluding the above compromises, the parties did not admit any violations of the 1984 Act, Public Law 89-777 or the Commission's regulations. These compromise agreements resulted from investigations conducted by Area Representatives of the Bureau of Enforcement located in Los Angeles, Miami, New York, Seattle and Washington, DC. Staff attorneys with the Bureau of Enforcement negotiated the compromise agreements.