The Federal Maritime Commission has fined six companies a
total of $383,000 for alleged violations of the Shipping Act of 1984, including
two companies in the Los Angeles area.
The penalties, which were announced in mid-November,
resulted from investigations conducted by the FMC area representatives in New
York, South Florida, Los Angeles and Washington DC.
One of the West Coast companies that agreed to pay penalties
was Greating Shipping Co., a licensed non-vessel-operating common carrier (NVOCC)
in Alhambra, California. Greating Shipping was alleged to have violated section
10(a)(1) of the Shipping Act by knowingly and willfully obtaining ocean
transportation for property at less than the rates and charges that would
otherwise be applicable by the device or means of “misdescription” of the
commodities shipped under certain service contracts with K-Line.
Greating Shipping made a payment of $68,000 in compromise of
these allegations.
The other company was Proshipping Group Corp., a licensed
and bonded NVOCC in City of Industry, California.
The Maritime Commission alleged that Proshipping violated
section 10(a)(1) of the Shipping Act by knowingly and willfully obtaining
transportation under service contracts to which Proshipping was not a contract
signatory, and violated section 10(b)(2)(A) of the Shipping Act by providing
service other than at the rates and charges in its tariff. Proshipping made a
payment of $60,000 to settle the case.
The other three NVOCCs agreeing to pay fines to settle cases
against them were China-based King Shipping Co.; Ft. Lauderdale, Florida-based
American Freight Line – Southeast, Inc.; and Jamaica, NY-based U.S. Pacific
Transport Inc.
Additionally, Icon Logistics Service, a business entity
based in Laurel, Maryland was fined $20,000 for allegedly acting as a NVOCC
without obtaining an FMC license as an ocean transportation intermediary.
