"These settlements demonstrate one facet of the Commission’s vigilant efforts to promote a maritime transportation system which is secure, efficient and fair to all lawfully engaged in the international shipping industry. Those who do not abide by our shipping laws pose significant risks, and equally significant burdens, upon the industry and the shipping public. The Commission’s actions should serve as a signal to others about the need to take their compliance obligations very seriously."
The compromise agreements are as follows:
British Association of Removers – a registered NVOCC based in the United Kingdom, doing business as Movers Trading Club. It was alleged that Movers Trading Club obtained ocean transportation for property at less than the rates and charges otherwise applicable through the unfair device or means of permitting third parties to access NYK Line service contracts to which such third parties were not contract signatories nor affiliates thereunder; in addition, Movers Trading Club provided intermediary ocean transportation (OTI) services to its customers at rates not in accordance with MTC’s NVOCC tariff. Under the terms of the compromise, Movers Trading Club paid an $80,000 penalty.
Sparx Logistics USA – a licensed freight forwarder and NVOCC based in Charlotte, North Carolina. Commission staff alleged that Sparx obtained ocean transportation for cargo at less than the rates and charges otherwise applicable, through the unfair device or means of utilising rates limited to certain ‘named accounts’ in MSC and Zim service contracts; by improperly obtaining access to a Zim service contract to which Sparx was not a contract signatory; and by improperly allowing access to Sparx’ service contracts by another NVOCC not a contract signatory thereto. It was also alleged that Sparx had provided OTI services in the period immediately prior to obtaining its OTI licence, and had provided transportation to its customers at rates not in accordance with Sparx’ NVOCC tariff. Sparx made a compromise payment of $80,000 in relation to these allegations.
Azap Motors – a Florida corporation apparently operating unlicensed services. It was alleged that Azap, through the actions and direction of its owner and Chief Executive Officer, Ali Y Husein, conducted OTI services without an FMC licence, filing a surety bond, or publishing an NVOCC tariff. Under the terms of the compromise, Azap made a monetary payment to the Commission in the amount of $60,000 and agreed to the dissolution of Azap as a Florida corporation.
Wilhelmsen Ships Services – a licensed and bonded NVOCC and freight forwarder located in Pasadena, Texas and a subsidiary of the giant Wilh. Wilhelmsen group. It was alleged that WSS continued operating as an ocean transportation intermediary without a valid Qualifying Individual for a period in excess of one year. Wilhelmsen Ships Services made a payment of $35,000 in compromise of these allegations.
Aromark Shipping – a licensed and bonded freight forwarder and NVOCC headquartered in Newark, New Jersey. Commission staff alleged that Aromark violated the Shipping Act by providing service to unlicensed or unbonded NVOCCs in the shipment of household goods to the Dominican Republic and Haiti. Under the terms of the compromise, Aromark made a monetary payment to the Commission in the amount of $32,500.
Knopf International – located in Alexandria, Virginia, primarily offering international household relocation services on behalf of employees of Knopf’s corporate clients. It was alleged that Knopf continued to conduct OTI services without benefit of an FMC licence or bond, disregarding written and oral warnings by Commission staff. Under the terms of the compromise, Knopf paid $24,000.
N/J International – a licensed and bonded NVOCC and freight forwarder located in Houston, Texas. It was alleged that N/J International continued operating as an ocean transportation intermediary without a valid Qualifying Individual for a period in excess of one year. N/J International made a payment of $22,500 in compromise of these allegations.
Penalties of this type seem to be recurring ever more often as the authorities, particularly in the US, tighten up on bad behaviour and poor management making it quite a lucrative business for the various regulators concerned.
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