Consolidated Grain and Barge Under Investigation

September 1, 1999

At least 15 vessels that are "impermissibly controlled" by Consolidated Grain and Barge Co. (CGB) could lose their right to trade in U.S. waters within a month, said the USCG. After an "exhaustive investigation," the USCG has concluded Japanese-owned CGB illegally maintains control over 15 towboats and workboats through two companies: Paragon Marine Services, Inc., of St. Louis, and M/V One, L.L.C., of Covington, La. Under the federal Jones Act, vessels operating in U.S. domestic commerce must be controlled by Americans. Control by the CGB, then, is a violation of the Jones Act, said the USCG. Such USCG enforcement actions are highly unusual. An action involving 15 vessels is believed to be one of the largest of its kind, according to the Maritime Cabotage Task Force. On March 3, the vessels could lost all domestic trading privileges, the USCG said. In addition, penalties under federal law include substantial civil penalties, forfeiture of vessels and even criminal penalties in certain circumstances.

Consolidated Grain and Barge Under Investigation

Related News