The Federal Maritime Commission has terminated the licenses of 84 Ocean Transportation Intermediaries (OTIs). Most of these terminations are due to failure to maintain surety bonds. In a few cases, licenses were surrendered voluntarily by companies that have discontinued their ocean freight forwarding or NVOCC activities.

All but two of these licensees are US based organizations; the ‘State’ column below identifies the US State or Country of the licensee’s home office. FMC license numbers (FMC #) that include only the letter “F” or “R” are OTI-Freight Forwarders; license numbers ending with “N” are OTI-NVOCCs; license numbers ending with “NF” are for organizations licensed to operate in the USA as both ocean freight forwarders and NVOCCs. Visit our web site at www.dpiusa.com for more information.

The home office address of each of these organizations is available at our web site at: www.dpiusa.com

See the next page of this issue of

SIGNALSÔ
for information of licenses recently re-issued by the FMC.

The Federal Maritime Commission has reissued licenses to 11 Ocean Transportation Intermediaries (OTIs).These OTIs had their licenses terminated due to failure to maintain surety bonds. In most of these cases, licenses were reissued without any lapse in licensing. Visit our web site at www.dpiusa.com for more information.

Transworld Shipping (USA), Inc., a licensed OTI-NVOCC based in Long Beach, CA, has filed a formal compliant with the FMC alleging violations of the Shipping Act by Union-Transport Corporation, an FMC licensed OTI-Ocean freight forwarder and NVOCC. FMI Forwarding (San Francisco), Inc. a/k/a Inter-Maritime Forwarding Co., and Inter-Maritime Container Line are also named as co-respondents in this proceeding.

According to FMC Docket 01-02, Transworld alleges that Union Transport and the other named companies violated the Shipping Act by engaging in a pattern of deceit by booking cargo and misrepresenting that ocean freight charges would be paid, thereby inducing Transworld to provide transportation service when they had no intent to pay, or were aware that payment would not be made. Transworld also alleges that Union-Transport filed a petition for bankruptcy in order to obstruct creditors’ investigation and recovery of funds. In its complaint Transworld has requested that Union Transport be held liable to it for damages in an amount determined by the FMC, but no less than $22,630.76 plus prejudgment interests, costs and attorney’s fees.

This proceeding has been assigned to the FMC office of Administrative Law Judges. Hearings in this matter shall commence only after consideration has been given by the parties and the presiding officer to the use of alternative forms of dispute resolution. A final decision in this case is due by June 30, 2002.

Pactrans Air & Sea, Inc., a Long Beach, CA based OTI-NVOCC, has filed a formal complaint with the FMC against Altraco, Inc. Pactrans alleges that Altraco knowingly and willfully violated the Shipping Act, by causing Pactrans to lose its maritime lien and by using an unfair device or means to gain free transportation.

According to FMC Docket 01-03, Pactrans has asked that the Commission issue orders against Altraco finding it in violation of the Shipping Act, and requiring Altraco cease and desist from the activities described in its compliant. Additionally, Pactrans has asked for the FMC to issue an order compelling Altraco to make reparations to Pactrans in an amount to be proved at an FMC administrative hearing, plus interest, costs, and reasonable attorneys’ fees. Pactrans has requested that a hearing in this matter be held in Washington, DC. This proceeding has been assigned to the office of Administrative Law Judges. Hearing in this matter, if any is held, shall commence within the time limitations prescribed in 46 CFR 502.61, and only after consideration has been given by the parties and the presiding officer to the use of alternative forms of dispute resolution.

Let’s pretend for a few minutes that SIGNALS™
has been asked to help prepare a special edition of a certain popular television program, and you have just won a trip to New York City and the opportunity to answer a series of questions to test your knowledge of Federal Maritime Commission (FMC) regulations and history. All questions below pertain to FMC regulated ocean and intermodal shipping activities and current regulations. And your final answer is?

1. In FMC regulated carrier tariffs, ocean freight rates must be published and effective not later than the date: a. the vessel sails, b. the vessel arrives, c. cargo is received at origin, d. cargo is delivered to the consignee.
2. Ocean freight forwarding commissions may by paid by ocean carriers only to: a. NVOCCs, b. Sales Agents, c. FMC licensed OTI-Forwarders, d. close friends
3. Service contracts between FMC ocean carriers and shippers must be: a. made available to the shipping public by the FMC, b. kept confidential by the FMC, c. made available by carriers for ‘me too’ by similarly situated shippers, d. printed on yellow paper
4. Which one of the following is NOT permitted in FMC regulated carrier tariffs?: a. loyalty contract, b. time volume rate, c. project rate, d. special rate for co-loaders only
5. Ocean common carriers in which of the following trade lanes are NOT regulated by the FMC?: a. Puerto Rico to Panama, b. Alaska to Japan, c. Hong Kong to Guam, d. Hawaii to US West Coast
6. The filing fee for a new Ocean Transportation Intermediary (OTI) license is: a. $400, b. $778, c. $1362., d. $2978.
7. The Federal Maritime Commission was established as an independent federal agency in: a. 1961, b. 1984, c. 1802, d. 1916
8. Under FMC regulations, which one of the following may NOT enter into a service contract with an ocean carrier: a. NVOCC, b. Beneficial Cargo Owner, c. Ocean Freight Forwarder, d. Consignee
9. During 2000, the FMC Bureau of Enforcement negotiated settlement agreements with 32 organizations alleged to have violated the Shipping Acts. These agreements resulted in the collection by FMC of a total of: a. $2 million, c. $18 million, d. $1 million, e. $60 million
10. Which one of these former FMC Commissioners now serves as Secretary of Labor in the G.W. Bush Administration?: a. Chris Koch, b. Elaine Chao, c. Helen Bently, d. George Hearn

For the answer key please visit our web site at www.dpiusa.com Answers This is FMC-IQ Test No. 01-01.