Carriers pay up for US Shipping Act violations
Four operators agree to pay a total of $625,000 to the FMC
China Shipping and three non-vessel-operating common carriers (NVOCCs) have agreed to pay the US Federal Maritime Commission (FMC) US$625,000 in penalties for violations of the Shipping Act.
China Shipping will pay $440,000, ATI USA $115,000, MT Global Freight Solutions $35,000 and Cosa Freight $35,000.
China Shipping was alleged to have provided transport services to intermediaries that did not have tariffs, licences, or bonds as required by the statute; to have mis-described shipped cargo; allowed use of service contracts by persons not party to those contracts; and provided transport that was not in accordance with the rates and charges in published tariffs.
ATI was alleged to have obtained transport services at less than applicable rates and charges for ocean common carriers, and by charging rates that did not comply with its published tariffs.
The FMC alleged that ATI mis-declared the measurements of shipments of motor vehicles and permitted use of service contracts by persons that were neither signatories nor affiliates to those contracts.
MT Global Freight Solutions was alleged to have obtained transport services at less than applicable rates and charges by unlawfully accessing service contracts to which MT Global was not a signatory or affiliate, and provided ocean transport services at other than the rates or charges provided in its published tariffs.
The FMC alleged that Cosa Freight obtained, and allowed others to obtain, ocean transport for property at less than the rates and charges that would otherwise be applicable by improperly accessing and allowing others to access service contracts to which Cosa Freight was not a signatory and mis-described commodities that were shipped.
FMC chairman Richard Lidinsky said: “These penalties should serve as a reminder to any carriers or intermediaries who may be tempted to disregard the FMC’s rules against unfair or deceptive practices.
“The FMC’s team on the front lines will be vigilant in protecting the emerging green shoots of recovery in the ocean shipping industry, international trade, and the larger economy.”
China Shipping will pay $440,000, ATI USA $115,000, MT Global Freight Solutions $35,000 and Cosa Freight $35,000.
China Shipping was alleged to have provided transport services to intermediaries that did not have tariffs, licences, or bonds as required by the statute; to have mis-described shipped cargo; allowed use of service contracts by persons not party to those contracts; and provided transport that was not in accordance with the rates and charges in published tariffs.
ATI was alleged to have obtained transport services at less than applicable rates and charges for ocean common carriers, and by charging rates that did not comply with its published tariffs.
The FMC alleged that ATI mis-declared the measurements of shipments of motor vehicles and permitted use of service contracts by persons that were neither signatories nor affiliates to those contracts.
MT Global Freight Solutions was alleged to have obtained transport services at less than applicable rates and charges by unlawfully accessing service contracts to which MT Global was not a signatory or affiliate, and provided ocean transport services at other than the rates or charges provided in its published tariffs.
The FMC alleged that Cosa Freight obtained, and allowed others to obtain, ocean transport for property at less than the rates and charges that would otherwise be applicable by improperly accessing and allowing others to access service contracts to which Cosa Freight was not a signatory and mis-described commodities that were shipped.
FMC chairman Richard Lidinsky said: “These penalties should serve as a reminder to any carriers or intermediaries who may be tempted to disregard the FMC’s rules against unfair or deceptive practices.
“The FMC’s team on the front lines will be vigilant in protecting the emerging green shoots of recovery in the ocean shipping industry, international trade, and the larger economy.”
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