FMC Collects USD 840,000 in Penalties from NVOCCs and Ocean Freight Forwarders
The Federal Maritime Commission (FMC) announced it has recently finalized compromise agreements with five entities recovering a total of USD 840,000 in civil penalties. The parties settled and agreed to pay these penalties, but did not admit to violations of the Shipping Act or Commission regulations. Details are as follows:
American Global Logistics LLC (AGL), a licensed NVOCC based in Atlanta, GA, is alleged to have obtained ocean transportation for property at less than the rates and charges otherwise applicable by improperly obtaining access to service contracts of carriers UASC, COSCO, Evergreen, Zim and Yang Ming, to which AGL was not a contract signatory. FMC also alleged that AGL provided transportation at rates not in accordance with its NVOCC tariff. Under the terms of the compromise, AGL paid USD 350,000.
Hecny Shipping Limited (Hecny Shipping) is a Hong Kong based NVOCC who was alleged by FMC to have obtained ocean transportation for property at less than the rates and charges otherwise applicable by misrepresenting cargo to be that of certain named shippers to obtain the benefit of lower rates applicable under a service contract with United Arab Shipping Company (UASC). In addition, FMC alleged Hecny Shipping provided service at rates not in accordance with its NVOCC tariff. Hecny Shipping made a payment of USD 300,000 in compromise of these allegations.
Razor Enterprise Inc. dba Razor Cargo Services is a licensed NVOCC and freight forwarder based in Jamaica, NY. According to FMC, Razor Cargo Services obtained ocean transportation for property at less than the rates and charges otherwise applicable by improperly obtaining access to a Safmarine/Maersk service contract to which it was not a party. Additionally, Razor Cargo Services provided transportation at rates not in accordance with its NVOCC tariff. Under the terms of the compromise, Razor Cargo Services paid USD 50,000.
Round The World Logistics (U.S.A.) Corp. (Round the World) is a licensed NVOCC and freight forwarder located in Dallas, TX. According to FMC staff, Round the World obtained ocean transportation for property at less than the rates and charges otherwise applicable by unfairly utilizing rates limited to certain “named accounts” under an Evergreen service contract. Round The World paid USD 80,000 in compromise.
Walker International Transportation LLC is a licensed freight forwarder and NVOCC based in Valley Stream, NY who was alleged to have obtained ocean transportation for property at less than the rates and charges otherwise applicable by improperly obtaining access to MSC and Zim service contracts to which it was not a party. Walker International paid USD 60,000 in compromise of these allegations.
In making the announcement of these compromise agreements, FMC Chairman Mario Cordero stated: “The Federal Maritime Commission is responsible for the regulation of oceanborne transportation in the foreign commerce of the U.S. The FMC is working to fulfill our core mission, which is to foster a fair, efficient, and secure maritime transportation system. The agreements and penalties announced today demonstrate our staff’s dedication and continuing commitment to protect the American shipping public.”
Transpacific Eastbound Carriers Adjust Surcharges, File GRIs Effective July 1 and PSS June 15
Several carrier members of the Transpacific Stabilization Agreement (TSA), FMC Agreement No. 011223 serving the East Asia/USA trade lanes, will update fuel surcharges effective July 1 through September 30, 2016. Details as follow:
| BUNKER ADJUSTMENT FACTOR (BAF) | ||
|---|---|---|
To US Atlantic/Gulf Coast Ports * | To US Pacific Coast Ports * | To US IPI/MLB via US Pacific Coast */** |
USD 453 per 40ft container ( ↑ ) | USD 257 per 40ft container ( – ) | USD 389 per 40ft container ( – ) |
| LOW SULPHUR FUEL SURCHARGE (LSF) | ||
To US Atlantic/Gulf Coast Ports * | To US Pacific Coast Ports * | To US IPI/MLB via US Pacific Coast */** |
USD 0 per 40ft container ( – ) | USD 29 per 40ft container ( – ) | USD 29 per 40ft container ( – ) |
| INTERMODAL FUEL SURCHARGE (IFS) | ||
USD 119 per 20ft container; USD 132 per 40ft container ( – ) | ||
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 July 1, 2016; GRI amount will be USD 600 per 40′ container. TSA carrier members also filed new Peak Season Surcharges (PSS) in their respective tariffs, effective June 15. The PSS amount will be USD 400 per FEU. However, the PSS for Evergreen will be USD 600 per FEU. Amounts for other container sizes are 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. The group’s web site at www.tsacarriers.org provides additional information, however, each carrier maintains its own tariffs and controls its own pricing, and this website does not provide details of GRIs – those are filed in individual carrier tariffs and service contracts. The TSA Carrier group only issues recommended guidelines to its member carriers. Website addresses for all carriers are listed on www.fmc.gov.
TSA Westbound Carriers Update Fuel Surcharges and File GRIs, Effective July 1, 2016
Members of the Transpacific Stabilization Agreement Westbound (TSA), FMC Agreement No. 011223, whose member carriers serve the USA/East Asia trade lanes, will update fuel surcharges for the July to September 2016 quarter.
Bunker fuel surcharges, including the low-sulfur component, will be USD 602 per 40’/45′ dry ctr for shipments from/via US Atlantic/Gulf Coast Ports, and USD 355 per 40’/45′ dry ctr on shipments from/via US Pacific Coast Ports. When the low-sulfur bunker component is charged separately it will be USD 32 per 40′ ctr from/via US Atlantic/Gulf Coast Ports, and USD 29 per 40’/45′ ctr on shipments from/via US Pacific Coast Ports.
Inland Fuel Charges (IFC) will remain USD 132 per ctr for rail and intermodal rail/truck shipments and USD 38 per ctr 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 Jul-Sep 2016 quarter.
Some TSA members have filed GENERAL RATE INCREASES (GRIs) effective July 1, 2016. GRI amounts will be USD 300 per 40′ container for refrigerated cargo, viz: beef, pork, poultry, meat, protein. Maersk announced GRIs of USD 80 per 20′ and USD 100 per 40′ dry container. All other container sizes as per formula.