Federal Maritime Commission (FMC) Chairman Mario Cordero announced that the Commission has completed compromise agreements recovering a total of USD 520,000 in civil penalties. The agreed penalties resulted from investigations conducted by the Commission’s Area Representatives in Seattle and New York, and by Washington D.C. headquarters staff. The parties settled and agreed to penalties, but did not admit to violations of the Shipping Act or FMC regulations. Details of these compromise agreements made public by FMC are:

Volkswagen Konzernlogistiks GmbH & Co. OHG (VWKL), based in Wolfsburg, Germany, is a vessel-operating common carrier providing roll on-roll off (RO-RO) services in the carriage of new and used automobile and other rolling stock. VWKL voluntarily disclosed to FMC that, over an extended time period, it operated pursuant to unfiled space charters with other operators of RO-RO vessels, or pursuant to agreement amendments, which were filed with the Commission, but not yet effective. In light of the voluntary nature of the disclosure, VWKL paid USD 170,000 in penalties.

Orient Star Transport International Ltd. (Orient Star) is a foreign-based registered non-vessel-operating common carrier (NVOCC) based in Taipei, Taiwan. Commission staff alleged that Orient Star obtained ocean transportation for property at less than the rates and charges otherwise applicable through the unfair device or means of utilizing rates limited to certain “named accounts” in service contracts it entered into with United Arab Shipping Company (UASC); and by providing transportation to its customers at rates not in accordance with its tariff. Orient Star made a payment of USD 135,000 in compromise of these allegations, and agreed to cooperate with respect to ongoing investigative activity into the transportation activities of other parties.

Ba-Shi Yuexin Logistics Development Co. Ltd (Ba-Shi Yuexin) is a licensed and bonded NVOCC based in Alhambra, CA. It was alleged by FMC that Ba-Shi Yuexin obtained ocean transportation for property at less than the rates and charges otherwise applicable through the unfair device or means of utilizing rates limited to certain “named accounts” in its service contract with NYK Line and by providing transportation to its customers at rates not in accordance with its tariff. Ba-Shi Yuen paid USD 100,000 in penalties.

Thornley & Pitt, Inc. is a licensed NVOCC and freight forwarder located in Millbrae, CA. Commission staff alleged that Thornley & Pitt knowingly and willfully obtained transportation at less than applicable rates by means of improperly obtaining access to service contracts to which it was not the contract signatory. Under the terms of the compromise, Respondent made a payment of USD 65,000.

Razor Enterprise Inc. d/b/a Razor Cargo Services is a licensed NVOCC and freight forwarder with offices in Jamaica, NY. It was alleged by FMC that Razor Cargo Services knowingly and willfully obtained transportation at less than applicable rates by means of improperly obtaining access to service contracts to which it was not the contract signatory. Razor Cargo Services made a payment of USD 50,000 in compromise of these allegations.

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Several carrier members of the Transpacific Stabilization Agreement (TSA), FMC Agreement No. 011223 serving the East Asia/USA trade lanes, will reduce fuel surcharges effective April 1 through June 30, 2016. Details are as follows:

Recommended BAF amounts shown with the asterisk (*) include the low-sulfur fuel component. For IPI/MLB destinations, the BAF includes both low-sulfur fuel component and the Inland Fuel Surcharge (IFS) component (**). BAF and LSF for other container sizes are as per the usual formula.

Several TSA members have filed GENERAL RATE INCREASES (GRIs) effective April 1, 2016; GRI amount will be USD 600 per 40′ container. GRI amounts for other container sizes are as per formula.

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. Visit www.tsacarriers.org for additional information.

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Members of the Transpacific Stabilization Agreement Westbound (TSA), FMC Agreement No. 011223, whose member carriers serve the USA/East Asia trade lanes, will reduce fuel surcharges for the April to June 2016 quarter. Bunker fuel surcharges, including the low-sulfur component, will be USD 568 per 40’/45′ dry container for shipments from/via US Atlantic/Gulf Coast Ports, and USD 355 per 40’/45′ dry container on shipments from/via US Pacific Coast Ports. When the low-sulfur bunker component is charged separately, it will be USD 0 per 40′ container from/via US Atlantic/Gulf Coast Ports, and USD 29 per 40’/45′ container on shipments from/via US Pacific Coast Ports. Inland Fuel Charges (IFC) will decrease to USD 132 per container for rail and intermodal rail/truck shipments and USD 38 per container for local/regional truck shipment, and Currency Adjustment Factors (CAF) on shipments to Taiwan will remain 5%, and to Singapore will remain 17% for the Apr-Jun 2016 quarter.

Several TSA members have filed GENERAL RATE INCREASES (GRIs) effective April 1, 2016. GRI amounts will be USD 20 per 20′ container and USD 25 per 40′ container for cargo from/via US West Coast Ports and Group 4 Points, USD 80 per 20′ container and USD 100 per 40′ container from US inlands via IPI/MLB, and USD 40 per 20′ container and USD 50 per 40′ container from all other US origins.

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