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FMC Announces Seven Compromise Agreements

October 1, 1997

FEDERAL MARITIME COMMISSION

FMC Announces Seven Compromise Agreements

NR 97-17

Washington, D.C. 20573

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

FOR RELEASE OCTOBER 1, 1997

The Federal Maritime Commission today announced seven compromise agreements for alleged violations of the Shipping Act of 1984 and Commission regulations, recovering civil penalties in an aggregate amount of $954,000. The agreements were entered into with a variety of transportation entities, including ocean common carriers, non-vessel-operating common carriers, freight forwarders and a proprietary shipper. The compromise agreements are:

Alexander Air Express Inc. Alexander Air Express Inc., located in Inglewood, California, is a consignee and destination agent for non-vessel-operating common carrier cargo moving from Hong Kong to the United States. It was alleged that Alexander Air Express Inc. violated section 10(a)(1) of the Shipping Act of 1984 by obtaining ocean transportation at less than the applicable rates or charges through the use of a false, fraudulent or unfair device or means, namely commodity misdescription. In accordance with the terms of the agreement, Alexander Air Express Inc. paid the sum of $20,000.

Frederic Henjes Jr., Inc. Frederic Henjes Jr., Inc. was a licensed ocean freight forwarder located in Palm Beach, Florida. Henjes was charged with violating section 10(a)(1) of the Shipping Act of 1984 and the Commission's freight forwarding regulations at 46 C.F.R. 510.21(f) and 510.22(a) by collecting freight forwarder compensation where no freight forwarding services were provided and by sharing freight forwarder compensation with persons having a beneficial interest in the shipments. After surrendering its license, Frederic Henjes Jr., Inc. paid the sum of $120,000.

Honorwell Shipping Limited. Honorwell Shipping Limited is a non-vessel-operating common carrier located in Hong Kong. It was alleged that Honorwell violated section 10(b)(1) of the Shipping Act of 1984 by providing transportation on shipments to the United States from Hong Kong and the Peoples Republic of China at less than the rates and charges shown in applicable tariffs. Honorwell paid the sum of $14,000 in the compromise of these allegations.

Kawasaki Kisen Kaisha, Ltd. Kawasaki Kisen Kaisha, Ltd. ("K"Line) is an ocean common carrier headquartered in Tokyo, Japan. It was alleged that "K"Line, through the actions of its agents in Taiwan or other overseas locations, violated sections 10(b)(1), 10(b)(3) and 10(b)(4) with respect to shipments transported in the eastbound Far East-United States trades by providing transportation at less than the rates or charges otherwise applicable, through the device or means of commodity misdescriptions or equipment substitution practices. Under the terms of the compromise agreement, "K"Line made a payment of $350,000 to the Commission.

Ocean World Lines Inc. and RF International Ltd. Ocean World Lines, Inc. is a non-vessel-operating common carrier located in New York. RF International Ltd., a related company of Ocean World Lines, Inc., is a licensed ocean freight forwarder also located in New York. It was alleged that the non-vessel-operating common carrier violated section 10(a)(1) of the Shipping Act of 1984 by receiving a portion of the freight forwarder compensation collected on its shipments. In addition, it was alleged that RF International's qualifying individual participated in this arrangement. Under the terms of the compromise, the parties agreed to replace RF International's qualifying individual and to pay the Commission the sum of $380,000.

South Seas Steamship Co., Ltd. South Seas Steamship Co, Ltd. is an ocean common carrier located in San Francisco, California, operating in the trade between the United States and New Zealand/Pacific Islands. It was alleged that South Seas violated Section 10(b)(1) of the Shipping Act of 1984 by entering into an arrangement with a shipper to provide transportation on shipments from New Zealand and Fiji at less than the rates and charges in its applicable tariffs or service contracts. Pursuant to the compromise, South Seas Steamship Co., Ltd. has tendered the amount of $40,000.

Three Hands Corp. Three Hands Corp. is an importer located in Sylmar, California. It was alleged that Three Hands violated Section 10(a)(1) of the Shipping Act of 1984 by obtaining transportation at less than the applicable rates or charges through the device or means of misdescription of the commodities shipped. Three Hands Corp. paid the sum of $30,000 to the Commission.

In concluding the above compromises, these companies did not admit any violations of the Shipping Act of 1984. The compromise agreements resulted from investigations conducted by Area Representatives of the Bureau of Enforcement located in Los Angeles, Miami, Seattle and Washington. Staff attorneys with the Bureau of Enforcement negotiated the settlements.