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FMC Collects $925,000 In Penalty Payments

July 13, 2017

NR 17-15

Contact: John K. DeCrosta (202) 523-5911

The Commission completed compromise agreements recovering a total of $925,000 in civil penalties. The agreements were reached with eight non-vessel-operating common carriers (NVOCCs) and an unlicensed entity. The agreed penalties resulted from investigations conducted by the Commission’s Area Representatives in New York, Seattle, and South Florida, 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.

The Respondents and the alleged violations are:

Separate compromise agreements with NVOCCs Brilliant Group Logistics Corp., Valley Stream, NY; King Freight (USA), Inc., Cerritos, CA; Interglobo North America, Inc., Jersey City, NJ; Fastic Transportation Co. Ltd., Shanghai, PRC; and Pudong Prime Int’l Logistics, Inc., El Monte, CA, alleged that the Respondents each knowingly and willfully obtained transportation at less than applicable rates and charges by improperly utilizing rates contained in service contracts limited to certain named shipper accounts for unrelated shipments of cargo. Each compromise agreement also alleged that the Respondent provided transportation in the liner trade that was not in accordance with its published tariff.

The joint compromise agreement with NVOCCs Seamaster Logistics, Inc., Diamond Bar, CA, and Toll Global Forwarding (Hong Kong) Limited, Hong Kong, alleged that Respondents knowingly and willfully allowed another NVOCC to access their service contracts for a fee, and thereby unlawfully permitted a non-contract party to enjoy the benefits of service contracts contrary to its contract with the respective ocean common carrier. It was also alleged that Respondents provided ocean transportation in the liner trade that was not in accordance with their published tariffs.

The compromise agreement with Pacific International Import Export, LLC, Auburn, WA, alleged that Respondent acted as an NVOCC without a license, evidence of financial responsibility, or a published tariff.

The compromise agreement with licensed NVOCC A-Sonic Logistics (USA), Inc., Valley Stream, NY, alleged that Respondent knowingly and willfully accepted cargo from one or more ocean transportation intermediaries that did not have a published tariff, bond or other surety as required by the Shipping Act. It was also alleged that Respondent provided transportation that was not in accordance with the rates and charges set forth in its published tariff.

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.