Compromise Agreements Recover $477,500 in Penalties
October 17, 2011
NR 11-18
Contact: Peter J. King, Director, Bureau of Enforcement (202-523-5783)
Media Contact: Karen V. Gregory, Secretary (202-523-5725)
Eight compromise agreements recovered a total of $477,500 in civil penalties for alleged violations of the Shipping Act. The agreements were reached with ten non-vessel-operating common carriers (NVOCCs) and related companies providing ocean transportation services. The agreed penalties resulted from investigations conducted by the Commission’s Area Representatives in Los Angeles, New York, Seattle, South Florida, and Washington, D.C. Staff attorneys with the Commission’s Bureau of Enforcement negotiated the compromise agreements. The parties settled and agreed to penalties, but did not admit to violations of the Act or the Commission’s regulations.
Federal Maritime Commission Chairman Richard A. Lidinsky, Jr. states: "The agreements and penalties announced today demonstrate the continued hard work and vigilance of the Commission’s Area Representatives and Bureau of Enforcement to protect the shipping public from fraud and unfair practices."
The compromise agreements are:
AE Eagle America Inc., AE Eagle Cargo, Inc. and AE Eagle International Freight Shanghai, Co. Ltd. AE Eagle America is a tariffed and bonded NVOCC located in Jamaica, New York; AE Eagle Cargo Inc. is a licensed NVOCC in Torrance, California, which serves as consignee for AE Eagle shipments, while AE Eagle International Freight Shanghai serves as shipper and origin agent for shipments from China. Commission staff alleged that AE Eagle America, AE Eagle Cargo, and AE Eagle International Freight Shanghai violated the Shipping Act by knowingly and willfully obtaining ocean freight transportation at less than the rates and charges that would otherwise be applicable by unlawfully accessing service contracts to which they were not a signatory and by misdescribing the commodities shipped; and that AE Eagle America also violated the Shipping Act by providing service that was not in accordance with the rates or charges contained in its NVOCC tariff. AE Eagle America, AE Eagle Cargo, and AE Eagle International Freight Shanghai made payment to the Commission in the amount of $87,500.
Ba-Shi Yuexin Logistics Development Co. Ltd. Ba-Shi Yuexin Logistics, trading as Bus Logistics, is a bonded and licensed NVOCC with offices in Alhambra, California. Commission staff alleged that Bus Logistics violated the Shipping Act by knowingly and willfully obtaining transportation for property at less than the applicable rates by misdeclaring the cubic measurements of certain shipments in order to obtain discounted rates under a carrier’s equipment substitution provisions, and by providing service not in accordance with its NVOCC tariff. Under the terms of the compromise, Ba-Shi Yuexin Logistics paid $85,000 in civil penalties.
Oceane Marine Shipping Inc. Oceane Marine is a tariffed, licensed, and bonded NVOCC based in Cumming, Georgia. Commission staff alleged that Oceane Marine violated the Shipping Act by knowingly and willfully allowing other persons to obtain transportation at discounted rates, by giving rebates, and by paying for trucking services not performed. In addition, staff alleged that Oceane Marine violated the Shipping Act by allegedly transporting cargo for the accounts of unlicensed ocean transportation intermediaries. Under the terms of the compromise, Oceane Marine paid $70,000 in civil penalties.
S.E.S. International Express Inc. S.E.S. International is a licensed and bonded NVOCC based in Inglewood, California. Commission staff alleged that S.E.S. International violated the Shipping Act by knowingly and willfully obtaining unlawful access to certain service contracts for its shipments, and by misdeclaring the cubic measurements of certain shipments in order to obtain discounted rates under a carrier’s equipment substitution provisions. S.E.S. International also charged its customers ocean freight rates that were not listed in its NVOCC tariff, in apparent violation of the Shipping Act. S.E.S. International made a payment of $62,500 in compromise of these allegations.
MB Logistics International Inc. MB Logistics is a licensed and bonded NVOCC based in Jamaica, New York. Commission staff alleged that MB Logistics violated the Shipping Act by knowingly and willfully obtaining freight transportation at less than the applicable rates or charges established by ocean common carriers by misdeclaring commodities, allowing other NVOCCs to access its service contracts, and providing service not in accordance with its NVOCC tariff. Under the terms of the compromise, MB Logistics paid $50,000 in civil penalties.
Sinotrans Express Inc. Sinotrans Express is a licensed and bonded NVOCC based in Alhambra, California. Commission staff alleged that Sinotrans Express violated the Shipping Act by knowingly and willfully obtaining ocean transportation at rates and charges that were lower than would otherwise be applicable by misdescribing cargo under its service contracts. Under the terms of the compromise, Sinotrans Express paid the Commission $50,000.
Cargo Alliance Inc. Cargo Alliance is a licensed and bonded NVOCC based in Monterrey Park, California. Commission staff alleged that Cargo Alliance violated the Shipping Act by knowingly and willfully obtaining unlawful access to certain service contracts for its shipments to the United States, providing transportation as an NVOCC at rates not in accordance with its published tariff, and providing service as a freight forwarder without a valid freight forwarder license or applicable bond. Cargo Alliance made a payment of $40,000 in compromise of these allegations.
Orion Cargo Services Inc. Orion Cargo is a licensed and bonded NVOCC based in Newark, New Jersey. Commission staff alleged that Orion Cargo violated the Shipping Act by transporting cargo for the account of unlicensed ocean transportation intermediaries. In addition, Orion Cargo provided transportation in the liner trades that was not in accordance with the rates and charges in its published tariff, in violation of the Shipping Act. Under the terms of the compromise, Orion Cargo paid $32,500 in civil penalties.
The Federal Maritime Commission is the federal agency responsible for regulating the nation’s international ocean transportation for the benefit of exporters, importers, and the American consumer. The FMC’s mission is to foster a fair, efficient, and reliable international ocean transportation system while protecting the public from unfair and deceptive practices.