Sino-Global Subsidiary in Shanghai
Sino-Global Shipping America, Ltd. (NASDAQ:SINO), a non-state-owned provider of shipping agency and forwarder services operating primarily in China, announced the establishment of a new subsidiary in Shanghai, China. The subsidiary, Trans Pacific Logistics Shanghai, Ltd., increases Sino-Global's presence to nine ports in mainland China and will enable the Company to provide a full range of shipping agency services as well as freight forwarder services. Sino-Global has contractual arrangements with local shipping agencies in all mainland Chinese ports in which it does not have a branch office. "While the economic downturn has taken a toll on China's shipping industry…
FMC: OTI may not use unlicensed, unbonded agents
The Federal Maritime Commission (FMC) issued an order stating that, under the Shipping Act of 1984 and its implementing regulations, a licensed ocean transportation intermediary (OTI) may not use unlicensed and unbonded agents to provide non-vessel-operating common carrier (NVOCC) and ocean freight forwarder services to the public. The OTI had petitioned for a declaratory order allowing such an exception, citing the evolving business conditions. The majority of the Commission denied the petition, noting that it is not aware of any legislative history or case law that would indicate the Congress intended to distinguish between persons would act as OTIs (and must be licensed and bonded) and persons who provide OTI services (and could avoid the license and bonding requirements).
