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FMC Collects $840,000 In Penalty Payments

May 12, 2016

NR 16-09

Contact: Karen V. Gregory, Secretary, (202) 523-5725

Federal Maritime Commission Chairman Mario Cordero announced that the Commission has completed compromise agreements recovering a total of $840,000 in civil penalties. The agreements were reached with five ocean transportation intermediaries (both non-vessel-operating common carriers (NVOCCs) and freight forwarders). The agreed penalties resulted from investigations conducted by the Commission’s Area Representatives in Seattle, Miami, Houston and New York, and by Washington D.C. headquarters staff. The parties settled and agreed to penalties, but did not admit to violations of the Shipping Act or Commission regulations.

In making the announcement, Chairman Cordero stated: "The Federal Maritime Commission is responsible for the regulation of oceanborne transportation in the foreign commerce of the U.S. The FMC is working to fulfill our core mission, which is to foster a fair, efficient and secure maritime transportation system. The agreements and penalties announced today demonstrate our staff’s dedication and continuing commitment to protect the American shipping public."

The compromise agreements are:

Hecny Shipping Limited.

Hecny Shipping Limited (Hecny Shipping) is a registered foreign-based NVOCC, with its principal office located in Hong Kong. Commission staff alleged that Hecny Shipping obtained ocean transportation for property at less than the rates and charges otherwise applicable by misrepresenting cargo to be that of certain named shippers to obtain the benefit of lower rates applicable under a service contract with UASC. In addition, Hecny Shipping provided OTI services to its customers at rates not in accordance with its NVOCC tariff. Hecny Shipping made a payment of $300,000 in compromise of these allegations.

American Global Logistics LLC.

American Global Logistics LLC (AGL) is a licensed and bonded NVOCC based in Atlanta, GA. Commission staff alleged that AGL obtained ocean transportation for property at less than the rates and charges otherwise applicable by improperly obtaining access to numerous service contracts, including carriers UASC, COSCO, Evergreen, Zim and Yang Ming, to which AGL was not a contract signatory. Staff also alleged that AGL provided transportation to its customers at rates not in accordance with AGL’s NVOCC tariff. Under the terms of the compromise, AGL paid $350,000.

Round The World Logistics (U.S.A.) Corp.

Round The World Logistics (U.S.A.) Corp. is a licensed NVOCC and freight forwarder located in Dallas, TX. Commission staff alleged that Respondent obtained ocean transportation for property at less than the rates and charges otherwise applicable by unfairly utilizing rates limited to certain "named accounts" under an Evergreen service contract. Round The World Logistics made a payment of $80,000 in compromise of these allegations.

Walker International Transportation LLC.

Walker International Transportation LLC is a licensed freight forwarder and NVOCC based in Valley Stream, NY. Commission staff alleged that Respondent obtained ocean transportation for property at less than the rates and charges otherwise applicable by improperly obtaining access to MSC and Zim service contracts to which Walker International was not a party. Walker International paid $60,000 in compromise of these allegations.

Razor Enterprise Inc.

Razor Enterprise Inc. dba Razor Cargo Services is a licensed and bonded NVOCC and freight forwarder located in Jamaica, NY. Commission staff alleged that Razor Cargo Services obtained ocean transportation for property at less than the rates and charges otherwise applicable by improperly obtaining access to a Safmarine/Maersk service contract to which Razor Cargo Services was not a party. Staff also alleged that Razor Cargo Services provided transportation to its customers at rates not in accordance with its NVOCC tariff. Under the terms of the compromise, Razor Cargo Services paid $50,000 in compromise of these allegations.

The Federal Maritime Commission is responsible for regulating the nation’s international ocean transportation for the benefit of exporters, importers, and the American consumer. The Commission’s mission is to foster a fair, efficient, and reliable international ocean transportation system while protecting the public from unfair and deceptive practices.