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Signals™ Headlines - January 6, 2016

FMC Collects USD 334,000 in Penalties

The Federal Maritime Commission (FMC) announced it has completed compromise agreements with seven entities recovering a total of USD 334,000 in civil penalties. The parties settled and agreed to penalties, but did not admit to violations of the Shipping Act or Commission regulations. Details are as follows:

British Association of Removers Ltd d/b/a Movers Trading Club is an FMC registered NVOCC based in the United Kingdom. It was alleged that Movers Trading Club obtained ocean transportation for property at less than the rates and charges otherwise applicable through the unfair device or means of permitting third parties to access NYK Line service contracts to which such third parties were not contract signatories nor affiliates thereunder; in addition, Movers Trading Club provided services to its customers at rates not in accordance with its tariff. Under the terms of the compromise, Movers Trading Club paid USD 80,000.

Sparx Logistics USA Limited (Sparx) is a licensed freight forwarder and NVOCC based in Charlotte NC. Commission staff alleged that Sparx improperly obtained ocean transportation by utilizing rates limited to certain “named accounts” in MSC and Zim service contracts; by improperly obtaining access to a Zim service contract to which it was not a contract signatory; and by improperly allowing another unrelated NVOCC to access service contracts it had signed. It was also alleged that Sparx provided OTI services prior to obtaining its OTI license, and provided transportation to its customers at rates not in accordance with its tariff. Sparx made a payment of USD 80,000 in compromise of these allegations.

Azap Motors Inc. (Azap) is a Florida corporation located in Jacksonville, FL. It was alleged that Azap, through the actions and direction of its owner and CEO, Ali Y. Husein, conducted OTI services without an FMC license, bond, or NVOCC tariff. Under the terms of the compromise, Azap made payment to the Commission in the amount of USD 60,000 and agreed to the dissolve Azap as a Florida corporation.

Wilhelmsen Ships Services is a licensed and bonded NVOCC and freight forwarder located in Pasadena, TX. It was alleged that Wilhelmsen Ship Services operated as an ocean transportation intermediary without a valid Qualifying Individual for a period in excess of one year. Wilhelmsen paid USD 35,000 in compromise.

Aromark Shipping LLC. (Aromark) is a licensed and bonded freight forwarder and NVOCC headquartered in Newark, NJ. FMC alleged that Aromark provided service to unlicensed or unbonded NVOCCs shipping household goods to the Dominican Republic and Haiti. Aromark paid FMC USD 32,500 to settle.

Knopf International Inc. (Knopf) is an Alexandria, VA based entity, primarily offering international household relocation services to corporate clients. It was alleged that Knopf provided OTI services without an FMC license or bond, disregarding written and oral warnings from the FMC. Knopf paid USD 24,000 to settle.

N/J International is a licensed and bonded NVOCC and freight forwarder located in Houston, TX. It was alleged that N/J International operated without a valid Qualifying Individual for a period in excess of one year. N/J International made a payment of USD 22,500 in compromise of these allegations.

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Transpacific Eastbound Carriers Implement January GRIs, File new GRIs Effective February 1, 2016

Several carrier members of the Transpacific Stabilization Agreement (TSA), FMC Agreement No. 011223 serving the East Asia/USA trade lanes, have implemented General Rate Increases (GRIs), effective January 1, 2016, including APL, CMA CGM, COSCO, Evergreen, Hanjin, Hapag Lloyd, Hyundai Merchant, K Line, Maersk, and Yang Ming. GRI amounts on rates for shipments to or via US Pacific Coast Ports were USD 1200 per forty-foot equivalent unit (FEU); GRI amounts on shipments to or via US Atlantic or Gulf Coast Ports were USD 1600 per FEU. GRI amounts for other container sizes are as per formula.

APL reduced its GRI amounts to USD 900 per FEU for shipments to or via US Pacific Coast Ports; to USD 750 per FEU to US inlands via IPI/MLB/RIPI; and to USD 1300 per FEU for Miami and all water US Atlantic or Gulf Coast Ports. APL did not apply the GRI to cargo from Japan. For cargo from the Sub Continent origins of India, Pakistan, Sri Lanka, Bangladesh, Hyundai Merchant and OOCL postponed their GRI effective date until January 15 and reduced the amount to USD 400 per FEU. OOCL cancelled its GRI for all other origins. Hyundai Merchant also postponed the effective date of its GRI until Jan 15 for Japan. Hanjin postponed GRIs for cargo from the Sub-Continent until Jan 15, 2016, and cancelled GRIs for cargo from Japan. Evergreen reduced the amounts to USD 800 per FEU for cargo to USWC/G4; to USD 650 per FEU for cargo delivered to other inland via USWC, except G4 States, to USD 1250 per FEU for all other cargo. Evergreen did not apply the GRI to cargo from Sub Continent origins. Evergreen has also filed a second January GRI for effective Jan 15, 2016, for USD 1000 per FEU from the Far East, and USD 450 per FEU from Sub Continent origins.

Several carrier members have filed a new GRI, effective February 1, 2016, for USD 600 per FEU; with GRI amounts for all other container sizes as per formula. This will be the second GRI of the year for the East Asia/USA trade lane. The TSA’s fifteen member carriers are: American President Lines, China Shipping Container Lines, CMA CGM, COSCO Container Lines, Evergreen Marine, Hanjin Shipping, Hapag-Lloyd AG, Hyundai Merchant Marine, “K” Line, Maersk Line, Mediterranean Shipping, NYK Line, OOCL, Yang Ming Marine, and Zim Integrated Shipping Services. The group’s web site at www.tsacarriers.org provides additional info; however, each carrier maintains its own tariffs and controls its own pricing. Website addresses for all carriers are listed on www.fmc.gov.

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Members of the U.S./Australasia Discussion Agreement Announce General Rate Increases

Carrier members of the United States/Australasia Discussion Agreement, FMC Agreement No. 011117, whose member carriers serve the USA/Australia and New Zealand trade lanes, announced General Rate Increases effective February 1, 2016. Members ANL, Hamburg Sud, and Hapag-Lloyd announced GRIs in the amount of USD 100 per 20ft, USD 200 per 40ft for cargo via the US East Coast and Gulf Ports, and USD 175 per 20ft, USD 350 per 40ft for via US West Coast Ports. CMA CGM announced it will apply GRIs of USD 100 per 20ft, USD 200 per 40ft for cargo moving from/via US East Coast or Gulf Ports. GRI amounts for all other sizes are as per the usual formula. The agreement members are Hamburg Sud, CMA-CGM, Compagnie Maritime Marfret S.A., Pacific International Lines (PTE) Ltd., Hapag-Lloyd AG, and ANL Singapore Pte Ltd.

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TSA Westbound Carriers File General Rate Increases (GRIs) Effective February 1, 2016

Some members of the Transpacific Stabilization Agreement Westbound (TSA), FMC Agreement No. 011223, whose member carriers serve the USA/East Asia trade lanes, filed General Rate Increases (GRIs), effective February 1, 2016. The GRI amounts will be USD 100 per FEU for cargo from/via US West Coast Ports and Group 4 Points and US inlands via IPI/MLB, and USD 200 per FEU from/via all other US origins. GRI amounts for all other sizes are as per the usual formula. For more information, visit www.tsa-westbound.org.

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