FMC Collects USD 430,000 in Penalties
FMC Chairman Mario Cordero announced that the Federal Maritime Commission has recently completed compromise agreements recovering a total of USD 430,000 in civil penalties. The agreements were reached with six non-vessel-operating common carriers (NVOCCs) and one freight forwarder. The compromise agreements are:
Blue Cargo Group, LLC dba Blu Logistics is a licensed NVOCC and freight forwarder headquartered in Miami, FL. It was alleged that Blue Cargo Group violated section 10(b) (1) of the Shipping Act by knowingly and willfully remitting monetary compensation to the transportation manager of its largest shipper-customer. Blue Cargo made a payment of USD 105,000 to FMC in compromise of this allegation.
Unipac Shipping Inc. is a licensed NVOCC and freight forwarder based in Diamond Bar, CA. FMC alleged that Unipac Shipping violated the Shipping Act by obtaining transportation at less than applicable rates by means of accessing service contracts to which it was not a party, and also by providing transportation other than in accordance with the rates and charges in its published tariff. Unipac Shipping paid USD 75,000 to compromise.
Hughes International LLC is a licensed NVOCC and freight forwarder with offices in Clark, NJ. It was alleged that Hughes International violated the Shipping Act by knowingly and willfully obtaining transportation at less than applicable rates by means of improperly allowing third parties to access service contracts to which Hughes was the contract signatory, and by misdescribing commodities under certain service contracts. Under the terms of the compromise, Hughes International paid USD 75,000.
JHJ International Transportation Co., Ltd. is an NVOCC located in Shanghai, China. FMC staff alleged that JHJ International violated the Shipping Act by knowingly and willfully obtaining transportation at less than applicable rates by misrepresenting the names of shipper accounts under certain service contracts, and by providing transportation other than in accordance with the rates and charges in its published tariff. JHJ International made a payment of USD 65,000 in compromise of these allegations.
CTS International Logistics Corp., Ltd. is an NVOCC based in Shanghai, China. It was alleged that CTS International Logistics violated the Shipping Act by obtaining transportation at less than applicable rates by means of accessing service contracts to which it was not a party; and by providing transportation other than in accordance with the rates and charges in its published tariff. CTS International Logistics paid USD 50,000.
Ri-Time Logistic Corp. is a licensed NVOCC located in City of Industry, CA. FMC alleged that Ri-Time Logistic violated the Shipping Act by knowingly and willfully obtaining transportation at less than applicable rates by means of misdescribing commodities and misdeclaring the names of shipper accounts under certain service contracts. Under the terms of the compromise, Ri-Time Logistic paid USD 35,000.
C.H. Robinson Project Logistics, Inc. is a licensed freight forwarder located in Houston, TX. FMC alleged this company operated as an ocean transportation intermediary without a valid Qualifying Individual for more than one year. C.H. Robinson Project Logistics made a payment of USD 25,000 in compromise of this allegation.
Transpacific Eastbound Carriers Implement GRIs, Postpone Peak Season Surcharge
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) of USD 600 per FEU, effective July 1, 2015, including American President Lines (APL), CMA CGM, COSCO, Hanjin, Hapag Lloyd, K Line, Maersk, and Yang Ming. APL implemented GRIs for dry cargo, and postponed the effective date of the GRIs for reefer cargo until July 15, 2015. Evergreen reduced the GRI amounts to USD 250 per FEU for cargo delivered to California; to USD 150 per FEU for cargo delivered to or via the US East Coast; and cancelled GRIs for all other cargo. Hyundai postponed the effective date of the GRIs until July 15, 2015 for Sub-continent and Japan. OOCL cancelled this GRI.
Carrier members postponed the effective date of the Peak Season Surcharge (PSS) from June 1 to July 15, 2015, including APL, CMA CGM, COSCO, Evergreen, Hanjin, K Line, Maersk, OOCL, and Yang Ming. The PSS amount will be USD 400 per FEU; all other container sizes are as per formula.
Several carrier members have filed a new GRI, effective August 1, 2015, for USD 600 per FEU, with GRI amounts for all other container sizes as per formula. This will be the eighth 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 information; however, each carrier maintains its own tariffs and controls its own pricing. The TSA Carrier group only issues recommended guidelines to its member carriers. Website addresses for all carriers are listed on www.fmc.gov.
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 (GRIs). Member Hapag-Lloyd announced and implemented GRIs in the amount of USD 350 per FEU, effective June 15, 2015. CMA CGM and Hamburg Sud announced they will apply GRIs of USD 350 per FEU for cargo moving from the United States East Coast and Gulf Ports, effective August 1, 2015. 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. (Marfret), Pacific International Lines (PTE) Ltd., Hapag-Lloyd AG, and ANL Singapore Pte Ltd.
TSA Westbound Carriers Implement General Rate Increases (GRIs) Effective July 1, 2015
Some members of the Transpacific Stabilization Agreement Westbound (TSA), FMC Agreement No. 011223, whose member carriers serve the USA/East Asia trade lanes, implemented General Rate Increases (GRIs), effective July 1, 2015. COSCO, Evergreen, and Hyundai filed and implemented GRIs in the amount of USD 300 per FEU for refrigerated cargo, including frozen beef, pork, and poultry. APL withdrew this GRI. OOCL cancelled this GRI. For more information, visit www.tsa-westbound.org.