Federal Maritime Commission (FMC) Chairman Mario Cordero announced that the Commission has recently entered into compromise agreements recovering a total of USD 338,000 in civil penalties. The agreements were reached with one ocean common carrier and six ocean transportation intermediaries (both non-vessel-operating common carriers and ocean freight forwarders). The parties settled and agreed to penalties, but did not admit to violations of the Shipping Act or Commission regulations. Details advised by FMC are as follows:

Baron Worldwide, L.L.C. is a licensed ocean freight forwarder located in Centennial, CO. It was alleged that Baron Worldwide operated without a Qualifying Individual for a period in excess of one year. Baron Worldwide paid a penalty of USD 21,000 in compromise of these allegations.

Carlo Shipping International, Inc., d/b/a CSI Logistics, is a licensed ocean transportation intermediary located in Elizabeth, NJ. It was alleged that CSI Logistics knowingly and willfully accepted cargo for ocean transportation from unlicensed NVOCCs and also provided transportation that was not in accordance with its tariff. CSI Logistics made a payment of USD 32,500 in compromise of these allegations.

China International Freight Co., Ltd of Taipei, Taiwan is a tariffed and bonded NVOCC. Commission staff alleged that China International obtained ocean transportation at less than rates and charges that would be otherwise applicable by improperly utilizing rates and charges limited to specific named accounts in its service contracts. China International also provided transportation that was not in accordance with its published tariff. Under the terms of the compromise, China International made a payment of USD 100,000.

CL USA Inc. is a licensed NVOCC and ocean freight forwarder located in Medley, FL. Commission staff alleged that CL USA operated without a valid Qualifying Individual for a period in excess of one year. CL USA paid USD 22,500 in compromise of these allegations.

King Ocean Services, Ltd. (King Ocean) is a vessel-operating common carrier located in Miami, FL. It was alleged that King Ocean provided service to its shipper customers pursuant to rates and charges in various service contracts and corresponding amendments that were not timely filed with the Commission. Under the terms of the compromise agreement, King Ocean paid USD 50,000 in penalties.

Posey International, Inc. is a licensed NVOCC and ocean freight forwarder based in Spring, TX. Commission staff alleged that Posey International operated without a valid Qualifying Individual for a period in excess of one year. Posey made a payment of USD 22,000 in compromise of these allegations.

Sino Connections Logistics Inc. is a registered NVOCC based in Hong Kong. FMC staff alleged that Sino Connections obtained ocean transportation of property at rates and charges that were less than would be otherwise applicable by improperly utilizing rates limited to certain named accounts in one of its service contracts. It was also alleged that Sino Connections provided transportation that was not in accordance with the rates and charges contained in its NVOCC tariff. Sino Connections paid a penalty of USD 90,000.

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Several carrier members of the Transpacific Stabilization Agreement (TSA), FMC Agreement No. 011223 serving the East Asia/USA trade lanes, postponed General Rate Increases (GRIs) of USD 1500 per FEU, from effective October 1 until October 15, 2016; carrier members include American President Lines (APL), CMA CGM, Evergreen, Hyundai, and Yang Ming. However, effective October 15, 2016, Hapag-Lloyd will apply GRIs of USD 1200 per FEU; NYK will apply USD 1000 per FEU; and OOCL will apply USD 800 per FEU. GRI amounts for all other container sizes as per formula. This will be the tenth GRI of the year for the East Asia/USA trade lane.

Carrier members have filed a new GRI, effective November 1, 2016, for USD 600 per FEU; all other container sizes as per formula. This will be the eleventh GRI of the year for the East Asia/USA trade lane.

The TSA's 13 current member carriers are: American President Lines, CMA CGM, COSCO Container Lines, Evergreen Marine, Hanjin Shipping, Hapag-Lloyd AG, Hyundai Merchant Marine, Maersk Line, Mediterranean Shipping, NYK Line, OOCL, Yang Ming Marine, and Zim Integrated Shipping Services. The group's web site at www.tsacarriers.org provides additional information; however, each carrier maintains its own tariffs and controls its own pricing. The TSA Carrier group only issues recommended guidelines to its member carriers. Effective August 19, 2016 Kawasaki Kisen Kaisha, Ltd. (K-Line) resigned from the TSA Carrier group.

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Several members of the Transpacific Stabilization Agreement Westbound (TSA), FMC Agreement No. 011223, whose member carriers serve the USA/East Asia trade lanes, filed General Rate Increases (GRI), effective November 1, 2016, at USD 80 per 20' and USD 100 per 40' for dry cargo from US West/East/Gulf Coast Ports, and USD 120 per 20' and USD 150 per 40' for dry cargo from IPI/MLB/RIPI origins. However, CMA CGM updated its tariff to reflect GRIs of USD 300 per FEU for cargo from US West/East/Gulf Coast Ports, and USD 450 per FEU for shipments from U.S. inland points. Maersk and NYK filed GRIs of USD 200 per FEU. GRI amounts for all other container sizes as per formula. For more information, visit www.tsa-westbound.org.

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Some carrier members of the United States/Australasia Discussion Agreement, FMC Agreement No. 011117, whose member carriers serve the USA/Australia and New Zealand trade lanes, announced General Rate Increases (GRIs), effective October 15, 2016. Member carrier CMA CGM updated its FMC tariff to reflect GRIs in the amounts of USD 200 per 20’ and USD 400 per 40’ container for cargo from US East/Gulf Coast Ports or Inland Points via East/Gulf Coast Ports. Member ANL will apply GRIs in the amounts of USD 200 per 20’ and USD 400 per 40’ container for cargo from US West/East/Gulf Coast Ports and Inland Points. Hapag-Lloyd is no longer a member of this discussion agreement, but announced a similar GRI, for USD 200 per 20’ and USD 400 per 40’ container for cargo from US West/East/Gulf Coast Ports and Inland Points, effective November 1, 2016. The current agreement members are ANL Singapore Pte Ltd, CMA-CGM, Hamburg Sud, MSC Mediterranean Shipping Company S.A. and Pacific International Lines (PTE) Ltd. Effective June 6, 2016, Compagnie Maritime Marfret S.A. (Marfret) resigned from this agreement. Effective June 11, 2016, Hapag-Lloyd AG resigned from this agreement.

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