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FMC Collects $465,000 In Penalty Payments
American Shipper
Post Date

The Commission completed compromise agreements recovering a total of $465,000 in civil penalties. The agreements were reached with six non-vessel-operating common carriers (NVOCCs). The agreed penalties resulted from investigations conducted by the Commission’s Area Representatives in Houston and Seattle, 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.

The Respondents and the alleged violations are:

Golden Padlock, LLC and Young-Ko Trans Co., Ltd.
Separate compromise agreements with NVOCCs Golden Padlock, LLC, San Gabriel, CA and Young-Ko Trans Co., Ltd., Carson, CA, alleged that the Respondents knowingly and willfully engaged in an arrangement in which Young-Ko misrepresented to the carrier party of its service contract that Golden Padlock was an affiliate thereby allowing an unrelated, non-contract party to enjoy the benefits of the contract to which it was not entitled and obtain transportation at less than the rates and ges that would otherwise apply.

NVOCCs DSV Air & Sea Inc. and DSV Ocean Transport A/S
A joint compromise agreement with NVOCCs DSV Air & Sea Inc., Clark, NJ, and DSV Ocean Transport A/S, Denmark, was entered following Respondents’ voluntary disclosure describing their service in the liner trade over an exted period of time that was not in accordance with their published tariffs. In addition, the compromise agreement included Respondents’ alleged misrepresentations of affiliates in various service contracts, and operation by U.S.-based DSV without a Qualifying Individual for a period in excess of one year.

NZS Worldwide, Inc.
The compromise agreement with NVOCC NZS Worldwide, Inc., San Francisco, CA, alleged that Respondent knowingly and willfully accepted cargo from one or more ocean transportation intermediaries that did not have a published tariff, bond or other surety as required by the Shipping Act. It was also alleged that Respondent provided transportation that was not in accordance with the rates and ges set forth in its published tariff.

Translink Shipping, Inc.
The compromise agreement with NVOCC Translink Shipping, Inc., Seattle, WA, alleged that Respondent knowingly and willfully obtained transportation at less than applicable rates and ges by improperly utilizing rates contained in service contracts limited to certain named shipper accounts for unrelated shipments of cargo. The compromise agreement also alleged that Respondent performed service without publishing a tariff showing all of its applicable rates and ges.

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