Bureau Of Enforcement News

The United States' Federal Maritime Commission (FMC) on Friday announced it creating a new bureau to handle its enforcement and compliance activities. The agency, which is responsible for the regulation of oceanborne international transportation of the U.S., said it is consolidating its investigative and prosecution functions into a newly created Bureau of Enforcement, Investigations, and Compliance (BEIC) effective immediately.FMC Chairman Daniel B. Maffei said the reorganization…

The Federal Maritime Commission approved a settlement agreement reached between its Bureau of Enforcement (BoE) and Hapag-Lloyd AG (Hapag-Lloyd) where the ocean carrier will pay a $2 million civil penalty to address alleged violations related to their detention and demurrage practices.“To restore full confidence in our ocean freight system, vigorous enforcement of FMC rules is necessary. Specifically, we must ensure powerful ocean carriers obey the Shipping Act when dealing with American importers and exporters.

The Biden administration recently issued a sweeping Executive Order [1] aimed at protecting and enhancing competition, and the transportation sector—including air, ocean, and rail—is among the industries specifically identified and likely to see heightened antitrust scrutiny under the new directives. This executive action was soon followed by the long-awaited announcement of Biden’s pick to lead the U.S. Department of Justice’s Antitrust Division (Division), Jonathan Kanter, who…

Federal Maritime Commission Chairman Mario Cordero announced that the Commission has completed compromise agreements recovering a total of $338,000 in civil penalties. The agreements were reached with one vessel-operating common carrier and six ocean transportation intermediaries (both non-vessel-operating common carriers and ocean freight forwarders). The agreed-to penalties resulted from investigations conducted by the Commission’s Area Representatives in Houston, Seattle, South Florida, and New York, and by Washington D.C. headquarters staff.

The status of Hanjin Shipping and the disruptions caused by its bankruptcy to the American shipping community, as well as global supply chains, was examined closely by the Federal Maritime Commission during the closed session of the September 20, 2016 public meeting. Commissioners were briefed by staff from the Office of the General Counsel; the Bureau of Trade Analysis; the Bureau of Enforcement; and the Office of Consumer Affairs & Dispute Resolution Services about a variety of developments related to the insolvency of Hanjin Shipping. Topics addressed included: proceedings in the U.S.

The retirement of veteran Federal Maritime Commission senior executive Mr. Vern W. Hill, who has served as the Managing Director of the agency since 2013, has set in motion staff changes in three key offices. In consultation with his fellow Commissioners, Chairman Mario Cordero has appointed Ms. Karen V. Gregory to serve as the Commission’s Managing Director and Mr. Peter J. King to serve as the Deputy Managing Director. In their most immediate previous positions Ms. Gregory was the Secretary of the Federal Maritime Commission, while Mr. King was the Director of the Bureau of Enforcement. Both are members of the Senior Executive Service. Ms. Gregory and Mr. King begin their new roles today, September 1, 2016.

The U.S. Federal Maritime Commission (FMC, the federal agency responsible for regulating the nation’s international ocean transportation, has completed compromise agreements recovering a total of $520,000 in civil penalties, announced FMC Chairman, Mario Cordero. The agreements were reached with four ocean transportation intermediaries (both non-vessel-operating common carriers and freight forwarders) and one vessel-operating common carrier. The agreed penalties resulted from investigations conducted by the Commission’s Area Representatives in Seattle and New York, and by Washington D.C. headquarters staff. The parties settled and agreed to penalties, but did not admit to violations of the Shipping Act or Commission regulations.

Chairman Mario Cordero announced that the Federal Maritime Commission has completed compromise agreements recovering a total of $503,000 in civil penalties. The agreements were reached with five non-vessel-operating common carriers (NVOCCs), two unlicensed transport businesses and one vessel-operating common carrier. The agreed penalties resulted from investigations conducted by the Commission’s Area Representatives in Miami and Los Angeles, and Washington D.C. headquarters staff.

The Federal Maritime Commission (FMC) announced that it has completed compromise agreements recovering a total of $350,000 in civil penalties. The agreements were reached with a vessel-operating common carrier and three non-vessel-operating common carriers (NVOCCs). The agreed penalties resulted from investigations conducted by the Commission’s Area Representatives in Los Angeles and Washington D.C. headquarters staff. The parties settled and agreed to penalties, but did not admit to violations of the Shipping Act or the Commission’s regulations. OBI Shipping Inc.

U.S. Federal Maritime Commissioner Doyle spoke to the Global Shippers Forum in Los Angeles and discussed Ro/Ro price fixing matters; the newly approved cooperation agreement between the ports of Seattle and Tacoma; the first PVO company to take advantage of the alternative bonding mechanisms; China VAT; Commission's 6 (g) Analysis, and the Suez/Panama Canal routes. This past week the Commission unanimously voted to effectively allow the Ports of Seattle and Tacoma to move forward on a cooperative agreement to exchange information and work together to find synergies.

The Federal Maritime Commission announced a compromise agreement reached with Mitsui O.S.K. Lines Ltd. (MOL) and its corporate affiliate, Nissan Motor Car Carrier Co. (NMCC). Mitsui O.S.K. Lines Ltd., is a vessel-operating common carrier based in Japan. As a separate line of commerce, MOL and NMCC operate pure car carriers (PCCs) and roll on/roll off (RO/RO) vessels in U.S. inbound and outbound trades. Under the agreement, MOL agreed to pay $1,275,000 in penalties. The compromise agreement resolved allegations that MOL and NMCC violated section 10(a) of the Shipping Act, 46 U.S.C.

The Federal Maritime Commission announced compromise agreements reached with two common carriers operating pure car carriers (PCCs) and roll on/roll off (RO/RO) vessels in U.S. inbound and outbound trades. Under these separate agreements, Kawasaki Kisen Kaisha Ltd. (K Line), paid $1,100,000 in civil penalties and Nippon Yusen Kaisha (NYK Line), paid $1,225,000 in penalties. Both carriers are headquartered in Tokyo, Japan, and operate diverse fleets trading in the U.S.-foreign trades and globally. The compromise agreements resolved allegations that K Line and NYK Line violated provisions of the Shipping Act, including section 10(a) of the Shipping Act, 46 U.S.C.

The Federal Maritime Commission announced four compromise agreements in which an ocean carrier and intermediaries agreed to pay a total of $625,000 in civil penalties for alleged violations of the Shipping Act of 1984. The agreements were reached with a vessel-operating common carrier (VOCC) and three ocean transportation intermediaries (OTIs). The agreed penalties resulted from investigations conducted by the Commission's Area Representatives in Los Angeles, Seattle, South Florida, and Washington, D.C. Staff attorneys with the Bureau of Enforcement negotiated the compromise agreements. The parties settled and paid penalties, but did not admit to violations of the Act or the Commission's regulations. Federal Maritime Commission Chairman Richard A. Lidinsky, Jr.

The Federal Maritime Commission (FMC) issued an order by the Administrative Law Judge (ALJ) certifying to the Commission a motion of the Bureau of Enforcement to dismiss the proceeding against the Ports of Los Angeles and Long Beach for possible violation of the Shipping Act of 1984. Docket No. 08-05 (7/30/09). (Source: Bryant’s Maritime News)

FMC Administrative Law Judge (ALJ) Dolan issued a preliminary decision finding that the Bureau of Enforcement had sustained its burden of proof and shown, by a preponderance of the evidence, that a carrier violated various sections of the Shipping Act of 1984 by, among other things, charging shippers, in certain instances, rates on cargo in 20-foot containers when the cargo was moved in 40-foot containers. The proceeding was bifurcated. It will now proceed to the penalty phase. Source: HK Law

The U.S. Federal Maritime Commission (FMC) issued an Order with regard to various petitions and requests filed by Hai Hua Shipping Co., Ltd. (HASCO). The company was served with an Order to Show Cause as part of an investigation into whether it is an ocean common carrier under the Shipping Act of 1984. The company's petition to file a reply to the Bureau of Enforcement response was granted. The company's petition for a limited hearing of an FMC employee was denied. The company's request for oral argument was granted. Source: HK Law

The Federal Maritime Commission (FMC) released a Settlement Agreement it has entered into with one of the stevedoring companies that was allegedly involved in an improper exclusive tug franchise on the Lower Mississippi River. While not admitting that it violated the Shipping Act of 1984, the stevedore agrees to be cease and desist or modify its exclusive tug practices to the same extent and manner as may be required of the other respondents. The Bureau of Enforcement is saved the burden of having to prove particular violations by this particular respondent. Source: HK Law

The Federal Maritime Commission (FMC) issued an interim order in its proceeding relating to Shanghai Hai Hua Shipping Co., Inc. (HASCO). The primary issue is whether HASCO is an ocean common carrier in the U.S.-foreign trade. In this interim order, the FMC denied HASCO's request for expedited approval of its Agreement; denied HASCO's motion to strike the Bureau of Enforcement's response; and denied the Bureau's petition for injunctive relief. Source: HK Law

On Nov. 24 the Federal Maritime Commission summarized compromise agreements reached with various ocean transportation intermediaries with respect to alleged violations of the Shipping Act of 1984. Civil penalties in the amount of $242,500 were recovered. The agreements were reached with licensed and unlicensed ocean transportation intermediaries ("OTIs"), both non-vessel-operating common carriers ("NVOCCs") and ocean freight forwarders. Caribbean Freight Systems Inc. Caribbean Freight Systems Inc. ("Caribbean Freight") is a licensed OTI located in Miami, Florida. It was alleged that Caribbean Freight obtained and allowed others to obtain…