FMC Recovers USD 840,000 in Civil Penalties

The United States Federal Maritime Commission has completed compromise agreements recovering a total of USD 840,000 in civil penalties from five ocean transportation intermediaries.

The companies in question are Hecny Shipping, American Global Logistics LLC (AGL), Round The World Logistics (U.S.A.) Corp., Walker International Transportation LLC and Razor Enterprise dba Razor Cargo Services.

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 companies settled and agreed to penalties, but did not admit to violations of the Shipping Act or Commission regulations, the FMC said.

“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,” Mario Cordero, Federal Maritime Commission Chairman stated.

According to FMC, Hong Kong-based Hecny Shipping used lower cargo rates and charges than applicable by misrepresenting cargo to be that of certain named shippers. The company wanted to obtain the benefit of lower rates applicable under a service contract with United Arab Shipping Company (UASC). In addition, Hecny Shipping provided OTI services to its customers at rates not in accordance with its non-vessel-operating common carrier (NVOCCI) tariff. Hecny Shipping paid a penalty amounting to USD 300,000.

Atlanta-based AGL is the second company involved in the case. FMC alleged that AGL was applying lower rates when transporting cargo by improperly obtaining access to numerous service contracts, including carriers UASC, Evergreen, Zim and Yang Ming although it had signed no contract with these companies. Under the terms of the compromise, AGL paid USD 350,000.

Round the World Logistics (U.S.A.), a Dallas-based NVOCC and freight forwarder also transported goods at lower rates and charges than applicable by using rates limited to certain “named accounts” under an Evergreen service contract. The company was obliged to pay an amount of USD 80,000.

Walker International Transportation LLC, a freight forwarder from Valley Stream, NY, used lower rates and charges when transporting cargo as well. Namely, the company accessed to MSC and ZIM service contracts to which it was not a party. Consequently, the company had to pay USD 60,000.

The last company on the list is Jamaica-located Razor Cargo Services that used lower rates and charges when transporting cargo by gaining access to a Safmarine/Maersk service contract. FMC also alleged that the company provided transportation to its customers at rates not in accordance with its NVOCC tariff. As a consequence, the company had to pay a penalty of USD 50,000.