FMC Penalizes Seven OTIs and One Vessel Operator One Half Million Dollars

On Friday October 10, 2014 the Federal Maritime Commission announced “compromise agreements” totaling $503,000 in civil penalties from five NVOCCs, two unlicensed OTIs, and one vessel-operator. “Compromise agreements” do not admit guilt. They are:

Eastern Car Liner Ltd. a vessel-operating common carrier based in Tokyo, Japan. Commission staff alleged that Eastern Car Liner operated pursuant to an unfiled space charter agreement with another ocean common carrier. This agreement has since been filed with the Commission. It appeared that the carrier also provided service not in accordance with its filed service contracts or published tariff. Eastern Car Liner made a payment of $105,000 in compromise of these allegations.

China Container Line Ltd. and China Container Line (SHA) Ltd. an NVOCC and freight forwarder in Santa Fe Springs, CA. With payment of $100,00 it compromised claims of knowingly and willfully obtaining transportation at less than applicable rates by misdescribing commodities and misrepresenting the names of shipper accounts under certain service contracts.

Orient Star Transport International Ltd. a tariffed and bonded NVOCC based in Taipei, Taiwan. With payment of $100,00 it compromised claims of knowingly and willfully obtaining transportation at less than applicable rates by misrepresenting the names of shipper accounts and also failing to apply its tariff rates correctly.

Hayek Services Inc. of Miami, FL. It was alleged that Hayek acted as a freight forwarder without obtaining a license or bond or other form of security. Hayek Services made a payment of $20,000 in compromise of these allegations.

ABC Trucking and Logistics LLC of Atlanta, GA. It was alleged that ABC acted as an NVOCC without a license or bond and without publishing a tariff. ABC Trucking and Logistics made a payment of $23,000 in compromise of these allegations.

FCC Logistics Inc. dba GOF Logistics Group a licensed and bonded NVOCC in Rancho Dominguez, CA. FCC Logistics paid $70,000 in compromise of claims that it improperly accessed contracts to which it was not a party and misdescribed or misdeclared the names of shipper accounts and cargo.

Sea Central Shipping Corp. a Tampa FL NVOCC. Sea Central paid $85,000 in compromise of claims that it moves cargo for unlicensed OTIs.

If you or your firm are ever contacted by FMC headquarters or an FMC “area representative” with questions regarding your conduct as an OTI, we urge you to seek legal counsel. You may be dealing with a government lawyer with investigative or prosecutorial powers, though their titles do not always indicate that.


Source: http://www.fmc.gov/NR14-13/

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