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Federal Maritime Commission Announces Compromise Agreements

March 14, 2000

FEDERAL MARITIME COMMISSION

FMC Announces Compromise Agreements

Washington, D.C. 20573

NR 00-05

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

FOR RELEASE: March 14, 2000

The Federal Maritime Commission today announced ten compromise agreements recovering civil penalties in an aggregate amount of $732,000. The agreements were entered into with vessel operating common carriers and ocean transportation intermediaries operating in the Central America, South America and Caribbean trades. The compromise agreements are:

Alexim Trading Corporation. Alexim Trading Corporation ("Alexim") is a licensed, tariffed and bonded NVOCC located in Miami, FL and operating in the South America trades. It was alleged that Alexim violated section 10(a)(1) of the Shipping Act of 1984 by obtaining transportation of property for less than applicable rates and charges by receiving rebates, by using service contracts to which it is not signatory and other rate concessions. In compromise of these allegations, Alexim paid the sum of $20,000.

Asecomer International Corporation d.b.a. Interworld Freight Inc. Asecomer International Corporation d.b.a. Interworld Freight Inc. ("Interworld") is a licensed, tariffed and bonded NVOCC located in Miami, FL and operating in the South America trades. It was alleged that Interworld violated section 10(a)(1) of the Shipping Act of 1984 by obtaining transportation of property for less than applicable rates and charges by receiving rebates and other rate concessions. In compromise of these allegations, Interworld paid the sum of $20,000.

Cargonauts, Inc. Cargonauts, Inc. is an ocean transportation intermediary located in Miami, FL and operating in the South America trades. It was alleged that Cargonauts, Inc. violated sections 10(a)(1), 10(b)(1) and 19(d)(4) of the Shipping Act of 1984 by obtaining transportation of property for less than applicable rates and charges by receiving rebates, by charging, demanding, collecting or receiving less compensation for the transportation of property than the rates and charges set forth in its tariff and by collecting ocean freight forwarder compensation on shipments in which it had a beneficial interest. Under the terms of the compromise, Cargonauts, Inc. paid the sum of $60,000.

Caribbean General Maritime, Ltd. Caribbean General Maritime, Ltd. ("CAGEMA") is a vessel operating common carrier located on the Caribbean island of St. Lucia. It operated in both the U.S. - South America and U.S. - Caribbean trades. It was alleged that CAGEMA violated sections 10(b)(1), 10(b)(2) and 10(b)(4) of the Shipping Act of 1984 by charging, demanding, collecting or receiving less than the applicable rates and charges shown in its tariffs or service contracts for the transportation of property by the payment of rebates in the South America trades. Further, it was alleged that CAGEMA violated section 10(b)(14) by knowingly and willfully providing service to an untariffed and unbonded entity in the Caribbean trades. In compromise of these allegations, CAGEMA paid $80,000.

Compania Chilena de Navegacion Interoceanica S.A. Compania Chilena de Navegacion Interoceanica S.A. ("CCNI") is a vessel operating common carrier located in Chile and operating in the South America trades. It was alleged that CCNI violated sections 10(b)(1), 10(b)(2) and 10(b)(4) of the Shipping Act of 1984 by charging, demanding, collecting or receiving less than the applicable rates and charges shown in its tariffs or service contracts for the transportation of property by the payment of rebates. Pursuant to the terms of the compromise, CCNI paid the sum of $150,000.

Empresa de Navegacao Alianca S.A. Empresa de Navegacao Alianca S.A. ("Alianca") is a vessel operating common carrier located in Rio de Janeiro, Brazil, which operated in the U.S. foreign commerce, including the trades between the U.S. and South America. It was alleged that Alianca violated sections 10(b)(1), 10(b)(2) and 10(b)(4) of the Shipping Act of 1984 by knowingly and willfully allowing shippers to obtain transportation for less than applicable rates and charges shown in its tariffs and service contracts by the payment of rebates and by allowing shipments which did not qualify for carriage under service contract to be transported at service contract rates. Alianca paid $290,000 in compromise of these allegations.

Express Container Line, Inc. Express Container Line, Inc. is a licensed, tariffed and bonded NVOCC located in Miami, FL and operating in the South America trades. It was alleged that Express Container Line violated section 10(a)(1) of the Shipping Act of 1984 by obtaining transportation of property for less than applicable rates and charges by receiving rebates and other rate concessions. In compromise of these allegations, Express Container Line paid the sum of $20,000.

Maritime Trading Group, Inc. Maritime Trading Group, Inc. is a licensed, tariffed and bonded NVOCC located in Miami, FL and operating in the South America trades. It was alleged that Express Container Line violated section 10(a)(1) of the Shipping Act of 1984 by obtaining transportation of property for less than applicable rates and charges by receiving rebates and other rate concessions. Under the terms of the compromise, Express Container Line paid the sum of $42,000.

Speed Cargo Service, Inc. Speed Cargo Service, Inc. is an ocean transportation intermediary, located in Miami, FL, operating in the South and Central America trades. It was alleged that Speed Cargo Service violated section 10(a)(1) of the Shipping Act of 1984 between May 1, 1999 and September 30, 1999, by obtaining transportation at less than the applicable rates and charges by means of commodity misdescription. Under the terms of the compromise, Speed Cargo Service, Inc. paid the amount of $30,000.

Total Marine System. Total Marine System is a non-vessel-operating common carrier located in Miami, FL and operating in the South America trades. It was alleged that Total Marine System violated sections 10(a)(1) and 10(b)(1) by obtaining transportation of property for less than applicable rates and charges by receiving rebates and other rate concessions and by engaging in service contract misuse, and by providing transportation of property at rates other than those set forth in its tariffs. Total Marine System paid the sum of $20,000 in compromise of these allegations.

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 Miami and Washington, DC. Staff attorneys with the Bureau of Enforcement negotiated the compromise agreements.