US fines NVOCCs US$297,500 for making unlicensed bargains

THE US Federal Maritime Commission has fined five non-vessel owning common carriers (NVOCCs) US$297,500 for either providing or securing shipping at bargain rates below levels approved by the Shipping Act.


The FMC said the companies obtained ocean shipping at less than applicable rates. The companies unlawfully secured service contracts to which they were not a signatory by mis-describing commodities, the FMC said.


These are all violations under the Shipping Act, reported American Shipper. The accused companies settled, but did not admit violations under the act or FMC regulations.


Companies hit were Allied Transport Systems (USA) Inc, trading under Centurion Logistics Management of California and Centurion Logistics Services of Hong Kong. They must pay $150,000.


Also hit was Atlantic Express Corp, a licensed Illinois company, said to have accepted shipments of cargo from an unlicensed and unbonded company and for failing to charge rates in its lists. Atlantic Express pays $70,000.


Prime Shipping International, trading under California's Prime Agency, was said to have obtained shipping for less than approved rates by unlawfully accessing service contracts to which it was not a signatory and mis-describing commodities. Prime pays $45,000.


California's Speedy International, a licensed NVOCC was said to have obtained shipping at less than approved rates and by mis-describing commodities. It also failed to charge rates listed. Speedy pays $32,500.
(Source:http://www.schednet.com)