17 Agustus 2015

[170815.EN.BIZ] US Regulators Fine UASC, NVOs US$1.2 Million For Charging Too Little

THE US Federal Maritime Commission said it had levied US$1.2 million in fines against Dubai's United Arab Shipping Co (UASC) and seven non-vessel-operating common carriers for not charging the higher minimum declared rate for services as set by federal statute.

The UASC paid $537,500 in fines to the FMC, which said that "UASC violated 46 USC 41104(1) by unlawfully rebating to its NVO customer, Falcon Maritime and Aviation Inc, a portion of the applicable service contract rate for which no services were provided.

"UASC also violated 46 USC 41104(2) by providing transportation not in accordance with the rates and charges in its published tariff," said the FMC, reported American Shipper.

Falcon Maritime and Aviation, a licensed NVO based in Jamaica, New York was fined $85,000 as it was said to have unlawfully obtained rebates.

City Ocean Logistics Co Ltd in Shenzhen and City Ocean International and CTC International of Diamond Bar, California, was fined $325,000, and the OTI licence of CTC will be surrendered.

The FMC said the NVOs "knowingly and wilfully obtained ocean transportation at less than the rates and charges applicable".

Oriental Logistics Group of Taiwan paid $100,000. Hyundai Logistics of La Mirada, California, was fined $100,000. Sea Gate Logistics of Valley Stream, New York paid $80,000 in fines.

Source : HKSG.

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