The Federal Maritime Commission said Oct. 10 that it has
fined seven companies – including two on the West Coast – a total of $503,000
for alleged violations of the Shipping Act.
The fines and other penalties were placed on five
non-vessel-operating common carriers (NVOCCs), two unlicensed transport
businesses and one vessel-operating common carrier.
Among the penalized companies was China Container Line Ltd.,
a licensed and bonded NVOCC and freight forwarder located in Santa Fe Springs,
Calif., outside of Los Angeles.
Commission staff alleged that China Container Line violated
section 10(a)(1) of the Shipping Act by knowingly and willfully obtaining transportation
at less than applicable rates by misdescribing commodities and misrepresenting
the names of shipper accounts under certain service contracts.
Under the terms of the compromise, China Container Line and
its Shanghai-based branch jointly paid $100,000 in penalties.
Also fined was FCC Logistics Inc., doing business as GOF
Logistics Group. FCC Logistics is a licensed and bonded NVOCC located in the
Los Angeles suburb of Rancho Dominguez. Commission staff had alleged that FCC
Logistics violated the Shipping Act by knowingly and willfully obtaining
transportation at less than applicable rates by means of improperly accessing
service contracts to which it was not a party, and by misdescribing commodities
and misdeclaring the names of shipper accounts under certain service contracts.
Under the terms of the compromise, FCC Logistics paid a $70,000 fine.
The other penalized companies, which faced similar
accusations, include Atlanta-based ABC Trucking; Tampa, Fla.-based Sea Central
Shipping; Taiwan-based Orient Star Transport; and Eastern Car Liner,
headquartered in Tokyo.
The penalties came out of investigations conducted by
Commission representatives in Miami and Los Angeles, plus the FMC’s Washington
DC headquarters staff.
All accused parties settled and agreed to penalties, but
were not required to admit to violations of the Shipping Act or the
Commission’s regulations.
