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Signals™ Headlines - January 4, 2002

Docket 01-12: Cargo Carriers Ltd., Commonwealth Shipping Ltd., Martyn C. Merritt, et. al.

The Federal Maritime Commission has begun a formal proceeding to cancel the tariffs and license of two companies associated with Martyn C. Merritt. According to Docket 01-12 the FMC plans to cancel the tariffs published by Cargo Carriers Ltd. and Commonwealth Shipping Ltd., and order both companies to cease and desist from violations of the Shipping Acts. Both companies are based in Cheektowaga, New York. Commonwealth Shipping Ltd. is registered with the FMC as a vessel operating common carrier. Cargo Carriers Ltd. is licensed as an OTI-NVOCC. Mr. Merritt and other companies under his control were the focus of an extensive FMC investigation and proceeding in 1990-1995 for possible violations of the Shipping Act of 1984.

In the case of Cargo Carriers Ltd., the FMC alleges the ocean transportation intermediary license held by this company should be cancelled for providing materially false or misleading statements to the Commission in its license application. Specifically, the answers to questions regarding the sharing of office space and/or expenses are alleged to be false. Without a license, the FMC must order the cancellation of the tariff of Cargo Carriers Ltd. Commonwealth Shipping Ltd. is registered with the FMC as a vessel-operating common carrier, however, the FMC believes the company does not operate any vessels calling at US ports. Therefore, it appears that Commonwealth Shipping’s tariff contains false information, and this is a violation of the Shipping Act.

Docket 01-12 also includes an order to show cause why the Commission should not order Cargo Carriers Ltd., Commonwealth Shipping Ltd., Martyn C. Merritt and Mary Anne Merritt to cease and desist from future violations of the Shipping Acts. Filings in this case, including requests for hearings, are due by March 18, 2002. A final decision is expected by December 2002.

FMC Files Brief in Supreme Court Case: FMC v. South Carolina State Ports Authority

The Federal Maritime Commission has released a copy of the 60 page brief it recently filed with the U.S. Supreme Court in the case of FMC v. South Carolina State Ports Authority. This case involves the FMC’s jurisdiction over the activities of state owned ports. The key question presented in the case is whether state owned ports can use the Eleventh Amendment to the U.S. Constitution to prevent the FMC from adjudicating a private person’s complaint that the state-run port has violated the Shipping Act of 1984.

The FMC contends the Shipping Act gives it the authority to hear administrative complaints against ports, whether they are state-run marine terminals or privately run marine terminals. FMC Chairman Hal Creel has called this “crucial to effective and evenhanded regulation under the Shipping Act.” The South Carolina State Ports Authority contends that the FMC does not have jurisdiction in this matter because as a state-owned agency it is immune from suits of this kind filed with federal agencies. The U.S. Court of Appeals for the Fourth Circuit agreed; the FMC is seeking to reverse this decision. This case began with the filing of a complaint with FMC by South Carolina Maritime Services, Inc. in October 1999. Maritime Services asserted that the South Carolina States Ports Authority violated the Shipping Act by unfairly refusing to give berthing space at Charleston to its vessel which permitted gambling activities in international waters. The case is entitled Federal Maritime Commission v. South Carolina State Ports Authority, Supreme Court Docket No. 01-46.

FMC Terminates Licenses of 42 OTI-Freight Forwarders and NVOCCs

The FMC has recently terminated the licenses of 42 Ocean Transportation Intermediaries (OTIs). Licenses were terminated due to failure to maintain valid surety bonds, or surrendered voluntarily. FMC license numbers ending with the letter “F” are issued to OTI-Freight Forwarders; license numbers ending with “N” are for OTI-NVOCCs.

FMC #

Legal Name and Trade Name (if any)

State

Date Revoked

1614N &

1614F

Air Express, Inc. dba FAE Transportation dba Bison Warehouse & Distribution

TX

11Sep2001

16Sep2001

4300F

American Intercargo Express Inc.

NY

28Sep2001

15644N

Amerilines, Inc. –New York

NY

28Sep2001

11238N

Arrow Cargo Express, Inc.

IL

26Sep2001

4645N

Barsan Int’l, Inc.

NY

24Oct2001

14980N

Blue Ocean Transport, Inc.

NY

27Oct2001

7913N

Conterm Consolidation Services (USA), Inc.

CA

24Oct2001

827F

Davies, Turner & Co * surrendered license voluntarily

PA

12Ocr2001

15865N

Davis Int’l Trade & Transportation Org., Inc. *surrendered license voluntarily

MD

10May2001

16341N

DIT (USA), Inc. *surrendered license voluntarily

IL

17Aug2001

15777N

ECU Line USA, LLC

FL

16Oct2001

2430F

Emigdio S. Ledesma dba Jack Ledesma Int’l Forwarder

FL

20Sep2001

4425N

Esprit Int’l Shipping Combined Transport, Inc. dba Capital Freight Management

CA

05Sep2001

16144F

Fleetwood Shipping, Inc.

TX

20Oct2001

4148F

Fleura Meler dba Western Forwarders

CA

24Oct2001

3644F

Forward Logistics Group, Inc.

FL

20Sep2001

3261N

Geologisitcs Services, Inc. dba Matrix Container Lines

VA

24Oct2001

14162NF

ITS North America Limited

WA

30Sep2001

16461N

Jeong G. Ju dba Korea Express Washington, Inc.

VA

17Oct2001

16638F

Kalem Freight Forwarding Inc.

FL

16Sep2001

2338NF

Kamden Int’l Shipping, Inc.

NY

23Sep2001

4513N

Kevin C. Ahn dba Baytop Container Co.

CA

30Sep2001

4238F

Land Ocean Management, Inc.

OR

08Sep2001

3964F

Logistic Excel Corporation

CA

16Sep2001

16351N

LTL International Co., Ltd.

FL

24Oct2001

16715F

Nasser Massry dba Maromax Industries

NC

11Sep2001

15333N

Newtrans Service Corp. dba Newtrans Worldwide Co.

NY

30Sep2001

13389N

Pacificana Air Services, Inc.

CA

03Oct2001

14267N

Protech Shipping Co., Inc. dba PSI Express Line

NY

07Oct2001

4406F

Protrans Logistics & Agency, Inc. * surrendered license voluntarily

CA

24Sep2001

6313N

Puerto Rico Freight Systems, Inc.

PR

19Oct2001

4374F

Richard T. Freeman

IL

22Sep2001

15765N

Rush Interamerican Cargo Services, Inc.

FL

01Nov2001

4343F

Sea/Air Cargo Forwarders of NJ, Inc.

NJ

13Oct2001

16999N

Sonic Container Line, Inc.

IL

01Nov2001

16470N

South Beach Maritime Company

FL

06Nov2001

3415NF

TCX Int’l, Inc. dba Land Joy

FL

28Sep2001

16633N

Transworld Lines, Inc. * surrendered license voluntarily

IL

24Aug2001

16225N

U.S. Consolidators Int’l Corp.

NY

17Oct2001

16833N

United World Express, Inc.

CA

25Oct2001

2581F

Unitrans Int’l Corporation

CA

30Jul2001

16838N

Webtrans Logistics, Inc. dba ANC International

CA

27Oct2001

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