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Federal Maritime Commission Announces Compromise Agreements

March 23, 2000

FEDERAL MARITIME COMMISSION

FMC ANNOUNCES COMPROMISE AGREEMENTS

NR 00-06

WASHINGTON, D.C. 20573

 

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

FOR RELEASE: March 23, 2000

The Federal Maritime Commission today announced eight compromise agreements recovering civil penalties in an aggregate amount of $328,000. The agreements were entered into with a vessel operating common carrier and ocean transportation intermediaries operating in the Transpacific and European trades. The compromise agreements are:

Ace Shipping Corp. and Young S. Kim d.b.a. Ace Young Company. Ace Shipping Corp. is a tariffed, bonded and licensed NVOCC located in Des Plaines, IL. Young S. Kim is a principal in Ace Shipping Corp. and also acts as a licensed freight forwarder in his individual capacity, doing business under the trade name Ace Young Company, located in Jamaica, NY. It was alleged that Ace Shipping Corp. violated sections 10(a)(1) and 19(e) of the Shipping Act of 1984 by obtaining transportation of property at less than the applicable service contract rates and charges by designating a related entity, Ace Young, as freight forwarder on master bills of lading in the outbound Transpacific trades in order to obtain forwarder compensation on shipments for which no forwarder services had been rendered. In connection with the compromise, Mr. Kim surrendered the freight forwarder license of Ace Young. Ace Shipping Corp. and Ace Young Company also paid the sum of $23,000.

Asiana Express Corp. Asiana Express Corp., located in Torrance, CA, is licensed as a tariffed and bonded NVOCC and as a bonded freight forwarder. It was alleged that Asiana Express violated section 10(a)(1) of the Shipping Act of 1984 by obtaining transportation of property at less than the applicable rates and charges under its service contracts through the devices or means of misdescription of the commodities shipped and equipment substitution abuse. Pursuant to the terms of the compromise, Asiana Express Corp. paid the sum of $50,000.

Brian Min d.b.a. B & A Express. Brian Min d.b.a. B & A Express is a tariffed, bonded and licensed NVOCC located in Gardena, CA. Prior to surrendering its license, B & A Express also was authorized to act as an ocean freight forwarder. It was alleged that B & A Express violated sections 10(a)(1)and 19(e) of the Shipping Act of 1984 by obtaining transportation of property at less than the applicable service contract rates and charges by designating others as freight forwarder on certain master bills of lading in the outbound Transpacific trades, as a means of permitting others to obtain forwarder compensation on shipments in which no forwarder services had been rendered to the ocean common carrier. B & A Express also was designated as forwarder on shipments by other NVOCCs in order to qualify B & A Express for payments of forwarder compensation when B & A Express had rendered no forwarder services to the ocean common carrier. B & A Express paid the sum of $20,000 in compromise of the alleged violations.

DSR - Senator Lines GmbH. DSR - Senator Lines GmbH is a vessel-operating common carrier located in Bremen, Germany. Since 1997, majority ownership of Senator Lines has been held by Hanjin Shipping Co., of Korea. The compromise resolves allegations that Senator Lines violated sections 10(b)(1) and 10(b)(4) of the Shipping Act of 1984 by charging less compensation for transportation of property and allowing third parties to obtain transportation at less than the applicable rates by allowing access to a Senator Lines service contract without the consent of the shipper signatory. In compromise of these allegations, Senator Lines paid the sum of $120,000.

F.R.T. International Inc. d.b.a. Frontier Logistics Services. F.R.T. International Inc. d.b.a. Frontier Logistics Services, is a licensed NVOCC and freight forwarder located in Compton, CA. It was alleged that Frontier Logistics Services violated section 19(e) of the Shipping Act of 1984 by obtaining forwarder compensation from carriers on shipments for which it rendered no forwarder services. Frontier Logistics Services paid $15,000 in compromise of these allegations.

J.F. Hillebrand USA (West Coast), Inc. J.F. Hillebrand USA (West Coast), Inc. (now known as Ocean Coast Forwarders, Inc.), located in Sonoma, CA, was a licensed ocean freight forwarder for shipments in the European trades between January 1, 1995 and July 25, 1997. It was alleged that J.F. Hillebrand USA (West Coast), Inc. violated section 10(a)(1) of the Shipping Act of 1984 by knowingly and willfully obtaining or attempting to obtain ocean transportation for property at less than the rates or charges that would otherwise be applicable by the receipt of rebates. Pursuant to the compromise, J.F. Hillebrand USA (West Coast), Inc. paid the amount of $50,000.

Oceanic Bridge International Inc. Oceanic Bridge International Inc. is a tariffed, bonded and licensed NVOCC located in City of Industry, CA. It was alleged that Oceanic Bridge violated section 10(a)(1) of the Shipping Act of 1984 by obtaining transportation of property at less than the applicable service contract rates in the Transpacific trades due to the misdescription of commodities by its PRC origin agent on shipments transported under an Oceanic Bridge service contract with COSCO. Under the compromise, Oceanic Bridge paid the sum of $25,000.

Suntrans International, Inc. Suntrans International, Inc. is an ocean transportation intermediary based in Mt. Prospect, IL operating in the Transpacific trades. It was alleged that Suntrans International, Inc. violated section 10(b)(1) of the Shipping Act of 1984 by charging, demanding, collecting or receiving less compensation for the transportation of property than the rates and charges set forth in its tariff. It was also alleged that Suntrans International violated section 19(d)(4) of the Shipping Act of 1984 by collecting ocean freight forwarder compensation on shipments in which it had a beneficial interest. Suntrans International, Inc. paid the sum of $25,000.

In concluding these compromises, these entities 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, New Orleans, Seattle and Washington, DC. Staff attorneys with the Bureau of Enforcement negotiated the compromise agreements.