FMC Collects USD 500,000 in Penalties

The Federal Maritime Commission recently entered into compromise agreements with three non-vessel-operating common carriers (NVOCC) and a with a group of vessel operating carriers, recovering a total of USD 500,000 in civil penalties. The agreed penalties resulted from investigations conducted by the Commission’s Area Representatives in Seattle and California, 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 Commission regulations. Details as released by FMC are as follows:

Bayani Commercial, Inc., an OTI-NVOCC based in Tukwila, WA, entered into a compromise agreement with FMC and paid USD 25,000 after it was alleged that it operated without an FMC approved Qualifying Individual for a period in excess of one year. It has since complied with the FMC licensing requirement to maintain an FMC approved Qualifying Individual.

International Global Logistics, Inc., of San Leandro, CA, was alleged to have operated without having obtained a license and surety bond and without publishing a tariff in the manner required by FMC regulations. International Global Logistics, Inc. paid FMC USD 40,000. It has now obtained the required license and bond and has published a tariff and operates OTI-NVOCC.

American Freight Logistics, Inc. (AFL), a licensed OTI-NVOCC and OTI-Forwarder based in City of Industry, CA, which alleged to have improperly utilized rates limited to certain named accounts in its service contracts with Mediterranean Shipping Company (MSC). AFL paid USD 85,000 to FMC as part of a compromise agreement which confirms it has terminated the practices which are the basis of the alleged violations and committed to maintain measures designed to eliminate such practices in the future.

A compromise agreement was entered into jointly with PDL International Pte Ltd.; Sofrana Unilines (NZ) Ltd. and ANL Singapore Pte Ltd dba Sofrana ANL Pte Ltd.; Pacific Forum Line (Group) Limited and Pacific Forum Line (NZ) Limited; and Neptune Pacific Line, Inc. This compromise agreement alleged that in 2014 these ocean carriers entered into under an agreement to serve the American Samoa trades that was not filed with the Commission. American Samoa, like Guam and The Commonwealth of the Northern Marianas, are U.S. territories in the South Pacific; international ocean shipping from and to these territories is subject to FMC’s regulations. FMC also alleged these carriers provided service that was not in accordance with the rates, charges, or rules contained in their FMC tariffs, or provided in service contracts they had filed with FMC. Furthermore, the Commission alleged these carriers knowingly shared information concerning the nature, consignee, or routing of shipments without the consent of cargo owners. These carriers jointly paid the Commission USD 350,000 to compromise these allegations. Additionally, these carriers submitted a voluntary disclosure to FMC, and agreed to take all necessary steps to terminate the practices which are the basis of the alleged violations, and to maintain measures designed to eliminate such practices in the future.

Transpacific Eastbound Carriers Adjust Fuel Surcharges Effective July 1, 2019

Most of the leading container carriers serving the East Asia/USA trade lanes (U.S. Imports) have adjusted fuel surcharges, including bunker adjustment factors (BAF) effective July 1 through September 30, 2019. Details are as follows. Here is a table of carriers that have recently posted revised BAF amounts in their FMC tariffs:

NOTE 1: CMA CGM calls the above Bunker surcharge the fluctuating Bunker Surcharge (BAF03).

NOTE 2: ONE calls the above Bunker surcharge the Bunker Adjustment Factor (BAF). ONE also filed a ONE Bunker Surcharge (OBS) in its FMC tariff. Tariff rates which are published prior to January 1, 2019 shall be subject to BAF for their duration, unless otherwise excepted in the rate itself; all TRIs published after January 1, 2019 shall be subject to OBS.

NOTE 3: APL calls the above Bunker Surcharge (BAF03), which is applicable to service contracts or tariff rate items with validity greater than three months and are not subject to Bunker Surcharge (BAF08). APL has also filed in its FMC tariff a Market Adjustment Factor (MAF) of USD 1300/1600/1850/1850/1435 per 20ft/40ft/40HC/45ft/RD40ft container, effective April 26, 2019 thru June 07, 2019; and USD 4000/5000/5625/6330/4250 per 20ft/40ft/40HC/45ft/RD40ft container, effective June 08, 2019 thru April 30, 2020. The MAF applies to Service Contracts only, and is applicable to Transpacific Eastbound dry and reefer cargo.

NOTE 4: Subject to Low Sulphur Fuel Charge (LSF or LSS).

Transpacific Eastbound Carriers File GRIs Effective June 15 and July 1, 2019

Several leading carriers serving the Trans Pacific container trades have recently updated their respective tariffs to include new General Rate Increases (GRIs) effective June 15, 2019, including American President Lines (APL), CMA CGM, COSCO, Evergreen, Hapag Lloyd, Hyundai Merchant, Ocean Network Express (ONE), and Yang Ming. See table below for GRI amounts per 40ft container; GRI amounts for all other container sizes are as per formula. The June 15th GRIs will be the twelfth GRI of 2019 for the East Asia/USA trade lane.

NOTE 1: COSCO GRIs apply on all cargo moving under service contracts only.

Some carriers updated their tariffs to include new General Rate Increases (GRIs) effective July 1, 2019, including American President Lines (APL), CMA CGM, COSCO, Evergreen, Hyundai Merchant, Ocean Network Express (ONE), and Yang Ming. See table below for GRI amounts per 40ft container; GRI amounts for all other container sizes are as per formula. The July 1st GRIs will be the thirteenth GRI of 2019 for the East Asia/USA trade lane.

NOTE 1: COSCO GRIs apply on all cargo moving under service contracts only.

NOTE 2: Instead of filing an increase in their tariff, Maersk announced a contract increase for effective July 1, 2019 for the Far East Asia/USA trade lane. The contract increase will affect those with service contract (SC) rates that expire June 30, 2019, who want new SC rates valid July 1, 2019 and beyond. The contract increase will be USD 480/600/600/750 per 20ft/40ft/40HC/45HC dry container, respectively. Once SC rates expire on June 30, 2019, tariff rates will apply until a SC written agreement is finalized to reflect the contract increase. Filing of original SCs with FMC is required on or before the effective date; the deadline for filing SC amendments with FMC is within 30 days of scheduled effective date.

Transpacific Westbound Carriers Update Fuel Surcharges Effective July 1, 2019

Several carriers serving the USA/East Asia trade lanes (U.S. Exports) have adjusted their fuel surcharges for the July to September 2019 quarter. Here is a table of carriers that have posted BAF amounts:

NOTE 1: Yang Ming calls the above Bunker surcharge the New Bunker Charge (NBC). Yang Ming also filed an Emergency Bunker Surcharge (EBS) in its FMC tariff. Rates which are subject to the above NBC are exempt from the EBS. The EBS amounts effective April 02, 2019 thru June 30, 2019 are as follows: East Coast Port of Loading USD 357 per 40ft dry container, USD 438 per 40ft reefer container; West Coast Port of Loading USD 211 per 40ft dry container, USD 266 per 40ft reefer container.

NOTE 2: CMA CGM calls the above Bunker surcharge the fluctuating Bunker Surcharge (BAF03).

NOTE 3: ONE calls the above Bunker surcharge the Bunker Adjustment Factor (BAF). ONE also filed a ONE Bunker Surcharge (OBS) in its FMC tariff. Tariff rates which are published prior to January 1, 2019 shall be subject to BAF for their duration, unless otherwise excepted in the rate itself; all TRIs published after January 1, 2019 shall be subject to OBS.

NOTE 4: Subject to Low Sulphur Fuel Charge (LSF or LSS).