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Signals™ Headlines - July 5, 2007

Docket No. 07-05: NVOCC Files Complaint of Shipping Act Violations by Shipper

The Federal Maritime Commission received
a complaint of Shipping Act violations from K.E.I Enterprise d/b/a KEI Logix, a
FMC licensed NVOCC based in California, against Greenwest Activewear, Inc., a garment exporter
doing business principally in California.  K.E.I alleges that Greenwest violated the Shipping Act of 1984 by obtaining ocean
transportation for property at less than rates or charges that would otherwise have been applied, and has asked the
Commission to order Greenwest to answer these allegations, cease and desist from said Shipping Act violation, and to
make a payment of $108,019.08 in way of repartitions with interest and attorney’s fees.

According to Docket 07-05, K.E.I. claims that it transported fabric from the United States to Guatemala on behalf
of Greenwest on an ongoing basis in 2006.  Problems arose between K.E.I. and Greenwest after Greenwest filed a
claim with K.E.I. demanding reimbursement for cargo stolen in transit by an inland carrier in Guatemala.
 K.E.I. refused to make reimbursements, and as a result Greenwest refused to pay freight charges for other
shipments made with K.E.I.  In response K.E.I. refused to release cargo in its possession belonging to
Greenwest until payment of due freight charges was received.  K.E.I. claims a compromise was reached with
Greenwest in which Greenwest agreed to pay due freight charges totaling $101,019.08 in exchange for release of the
cargo. On May 16, 2007, K.E.I. claims it received three postdated checks totaling $101,019.08 from Greenwest as
payment of the freight charges.  As per the compromise, that same day K.E.I. released Greenwest’s
cargo.  However, on May 17, 2007, K.E.I. claims it was informed by Greenwest’s bank that a stop-payment
order on all three postdated checks had been issued, and thus payment for freight charges was not received.

K.E.I. claims that this is a violation of the Shipping Act and asserts that Greenwest “knowingly and
willfully, by means of unjust or unfair device, obtained ocean transportation for property at less than the rates or
charges” that K.E.I. would have applied, by inducing K.E.I. to release the cargo, and then issuing a
stop-payment order on the checks used to pay the due freight.  K.E.I. has requested the Commission to order
Greenwest to answer these allegations, cease and desist from said Shipping Act violation, and to make a payment of
$108,019.08 in way of repartitions with interest and attorney’s fees.  The FMC issued this Notice of Filing of Complaint and Assignment in Docket No. 07-05 on June 13,
2007. This docket has been assigned to Administrative Law Judge Clay G. Guthridge, and an initial decision in this docket is to be
issued no later than June 6, 2008, with a final decision to be issued by October 6, 2008.

FMC Increases Information Requirements for OTI License Applicants

The Federal Maritime Commission announced additional information requirements for the FMC Form-18 – the Ocean
Transportation Intermediary (OTI) license application.  Currently, the application form requests applications
to explain any prior bankruptcies. However, new language added to the FMC-18 form will expand the information
required to include prior tax liens and legal judgments rendered for debts.  The FMC will require this
additional financial information from not only Qualifying Individuals, but also from all partners, directors,
officers and shareholders.

The FMC requires persons or businesses wishing to operate or advertise as Ocean Freight Forwarders (OFF) or
Non-Vessel Operating Common Carriers (NVOCC) in the USA to obtain OTI licenses before they begin advertising or
operating.  All OTI license applicants are subject to rigorous investigation by the FMC’s Bureau of Certification and Licensing (BCL) to determine if they have the necessary experience
and character to render OTI services in compliance with the Shipping Act and FMC regulations.  With this newly
added language the FMC is emphasizing the need for OTIs to have sound financial backgrounds.  The FMC issued a
Notice and Request for Comments on this matter on June 8, 2007.  Comments regarding this
Notice must be submitted to the FMC by August 7, 2007.  For the full notice and further information regarding
OTI license requirements please visit the FMC website at www.fmc.gov.

TSA Increases Peak Season and Inland Fuel Charges, Maintains Bunker

The carrier members of the Transpacific Stabilization Agreement (TSA), FMC Agreement No. 011223,
serving the East Asia/USA trade lane announced that Inland Fuel Charges (IFC) and Peak Season Surcharges (PSS) will
be increased for the month of August; however, current Bunker Adjustment Factors (BAF) will be maintained.

Inland Fuel Charges (IFC) effective August 1 thru August 31, 2007 will be increased to US$ 216 per ctr for MLB and
IPI shipments moving via rail, and to US$ 63 per ctr for truck transport to “Group 4” points in
California, Oregon and Washington, and for East Coast local store-door truck moves.  Bunker Adjustment Factors
(BAF) will be assessed by the TSA Carriers from Aug 1 thru Aug 31, 2007 will be at the following levels that are
effective for the month of July, viz: US$ 510 per 20ft ctr, US$ 635 per 40ft ctr, US$ 715 per 40ft hi-cube ctr, US$
805 per 45ft ctr and US$ 14/WM.

Peak Season Surcharge (PSS) surcharges from June 15, 2007 through July 31, 2007 are as follows for full containers:
US$ 320 per 20ft ctr, US$400 per 40ft ctr, US$450 per 40’ hi-cube ctr, and $510 per 45’ ctr; for LCL the
PSS is US$8 per CBM or US$16 per KT.   Effective August 1 thru October 31, 2007 the PSS for full
containers will increase to: US$480 per 20ft ctr, US$600 per 40ft ctr, US$675 per 40’ hi-cube ctr, and $760
per 45’ ctr; for LCL the PSS will increase to US$12 per CBM or US$24 per KT.   The PSS could be
extended beyond October, possibly through Feb. 29, 2008.

The 14 member carriers of TSA are American President Lines, CMA-CGM, COSCO Container Lines Ltd., Evergreen
Marine Corp., Hanjin Shipping, Hapag-Lloyd Container Line, Hyundai Merchant Marine, “K” Line,
Mediterranean Shipping Co., Mitsui O.S.K. Lines, NYK Line, OOCL, Yang Ming Marine,
and Zim
Integrated Shipping Services
.  Visit www.tsacarriers.org for additional information.

WTSA Announces Increases to Inland Fuel Charges

The Westbound Transpacific Stabilization Agreement (WTSA), FMC Agreement No. 011325, whose member
lines serve the US export trades from the USA to East Asia, has announced Inland Fuel Surcharges (IFC) for August
will be increased; however current Bunker Adjustment Factors (BAF) will remain unchanged until at least August 31,
2007.  IFC effective August 1 to August 31, 2007 will be increased to US$ 216 per ctr for rail and intermodal
rail/truck shipments, and US$ 63 per ctr for local/regional truck shipments.  BAF effective August 1, 2007 to
August 31, 2007 will be maintained at current levels of US$ 508 per 20ft ctr, US$ 635 per 40ft/45ft ctr, and US$
32/WM.   The 10 member carriers of WTSA are American President Lines, COSCO Container Lines,
Evergreen Marine Corp., Hanjin Shipping, Hapag-Lloyd Container Line, Hyundai Merchant Marine, “K” Line,
and Yang Ming Marine.   For more info visit www.wtsacarriers.org.

TACA Maintains Currency Adjustment and Bunker Adjustment Factors

The Trans-Atlantic Conference Agreement (TACA), whose member carriers serve the trade between the
USA and North Europe, United Kingdom and Ireland, Scandinavia and Baltic Ports, announced it will maintain current
Currency Adjustment Factor (CAF) of 10 percent, as well as current Bunker Adjustment Factors (BAF) for the period of
July 16 to August 15, 2007.  Details of the Bunker Adjustment Factors (BAF) are as follows.

To/From Atlantic/Gulf Coast Ports To/From Pacific Coast Ports US$ 494 per 20ft ctr US$ 741 per 20ft ctr US$ 988 per 40ft/45ft ctr US$ 1482 per 40ft/45ft ctr US$ 49 per WM US$ 74 per WM

TACA members are Atlantic Container Line, Maersk Line, Mediterranean Shipping Co., NYK Line
and OOCL.  Surcharges are published in TACA’s FMC tariffs, and are shown on its
website: www.tacaconf.com

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Vol. 11 No. 7, July 5, 2007

The information contained herein is obtained from reliable sources.
It is subject to change at any time, however, depending on changes in
laws and regulations. While we continually attempt to monitor this
information, we do not guarantee its accuracy and are not responsible
for any damages suffered by any party in reliance on it.
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