China Shipping Container Line, 3 freight forwarders agree to pay penalties in US

March 22, 2010, 2:49pm

China Shipping Container Line and three other freight forwarders have agreed to pay $625,000 in penalties to the US Federal Maritime Commission (FMC) for alleged violations of the US Shipping Act of 1984.

The compromise agreements resulted from investigations conducted by the FMC'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. praised the Commission's Area Representatives and Bureau of Enforcement for their hard work protecting competition and the shipping public: "These penalties should serve as a reminder to any carriers or intermediaries who may be tempted to disregard the Commission's rules against unfair or deceptive practices. The Federal Maritime Commission's team on the front lines will be vigilant in protecting the emerging green shoots of recovery in the ocean shipping industry, international trade, and the larger economy."

China Shipping Container Line, an ocean common carrier headquartered in Shanghai and controlled by the government of China agreed to pay $440,000 as part of a compromise agreement.

That agreement settled alleged violations of the Shipping Act of 1984 that involved more than 1,000 shipments over four years. These alleged violations included providing transportation services to intermediaries that did not have tariffs, licenses, or bonds as required by the statute; misdescribing cargo they shipped; allowing use of service contracts by persons who were not parties to those contracts; and providing transportation that was not in accordance with the rates and charges set forth in published tariffs.