FMC Fines 3 Companies for Alleged Shipping Violations
The Federal Maritime Commission collected more than $2.3 million in fines after entering into compromise agreements with three companies, the FMC said May 29. The companies, CMA-CGM, Vangaurd Logistics Services and Shipco Transport, paid money to resolve various allegations of shipping violations that had been investigated by the commission’s Bureau of Enforcement, Investigations and Compliance.
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CMA-CGM paid $1,975,000 to resolve allegations that it "overbroadly defined and applied" its definition of merchant in a bill of lading to demand payment from a third party who should have not been billed, the agency said. The ocean carrier has since ended this practice and has revised its U.S. tariff rules to "limit the definition of merchant in its bills of lading to shippers, consignees, and persons with a beneficial interest in the cargo," the FMC said. The carrier will also "furnish restitution" to impacted third parties through refunds and waivers.
Vanguard paid $175,000 after the FMC said it "knowingly and willfully" accepted or transported cargo from the accounts of ocean transportation intermediaries that did not have bonds, insurance or other sureties as required by law. The ocean transportation intermediary agreed to audit its internal practices and will provide quarterly updates to the BEIC and a report of "remedial actions" it takes in response to the audit’s findings.
Shipco paid $155,000 to resolve three allegations, including that it accepted cargo from OTIs that didn't have bonds, insurance or sureties, and that it allowed an unlicensed OTI to "obtain transportation for property at less than the rates or charges that would otherwise be applicable." The FMC also said it allowed another OTI to "obtain transportation for property at less than the rates or charges that would otherwise be applicable by providing access to service contracts of an ocean common carrier to which the OTI was not a signatory."
Both Vanguard and Shipco agreed to "fully cooperate with BEIC in any future investigatory or enforcement efforts," the FMC said. CMA-CGM, Vanguard and Shipco didn't respond to our requests for comment.