April 5, 2001
Volume 5, Number 4
Oakland, California

SIGNALS™ provides detailed information on the regulations and activities of the US Federal Maritime Commission (FMC), and related developments in the ocean freight industry. For past issues, please consult our index.

In this issue, we discuss these industry developments:

 Docket 99-18: Stallion Cargo, Inc. Ordered by FMC to Pay $50,000 Civil Penalty

Stallion Cargo, Inc., a non-vessel operating common carrier based in South Florida, has been ordered by the FMC to pay a civil penalty of $50,000 due to violations of the Shipping Act. According to FMC Docket 99-18, Stallion violated section 10 (Prohibited Acts) of the Shipping Act of 1984, as amended, at various times in 1998, 1999, and 2000, by misdescribing cargoes tendered to vessel-operating carriers on 15 occasions, and by failing to charge its applicable NVOCC tariff rates on 152 occasions. These violations were carefully documented by the FMC’s Bureau of Enforcement.

In its Order of Investigation on Docket 99-18 the FMC described several shipments made by Stallion Cargo with King Ocean Service de Venezuela, S.A. (King Ocean) and SeaFreight Line, Ltd. (SeaFreight). On these shipments Stallion declared only one type of commodity to King Ocean and SeaFreight, who subsequently rated the commodities in accordance with the inaccurate description. Stallion's house bills of lading, however, describe the specific commodities being shipped, and indicate that Stallion was fully cognizant that the shipments actually consisted of commodities different from those listed on King Ocean's and SeaFreight's bills of lading.

Relevant details on Stallion's failure to charge the rates on file in its NVOCC tariff are provided in Docket 99-18. The FMC investigation was begun by FMC's Area Representative in November, 1998 as part of a routine review of trade practices between the U.S. Gulf Coast and South America. At that time the only commodity rate published in Stallion's tariff, which became effective on September 15, 1996, was for Cargo, N.O.S. Comparing the filed Cargo, N.O.S. rate applicable under Stallion's tariff with the ocean freight assessed by Stallion on the ninety-three (93) house bills of lading, the FMC found Stallion undercharged its shippers on eighty (80) shipments in the amount of $32,233.96, and overcharged two shippers in the amount of $96.87.

In his Initial Decision in this case, FMC’s Administrative Law Judge (ALJ) Norman D. Kline found Stallion committed violations knowingly and willfully, and continued a number of them for a time even after warning by the FMC. However, in view of mitigating factors presented by attorney’s representing Stallion the FMC did not suspend its OTI license and NVOCC tariff. These factors included Stallion’s small size, its weak financial situation, its corrections to its tariff, albeit belated, lack of evidence of continuing violations, and its expressed willingness to reform. The complete 60 page Initial Decision issued by the FMC’s Administrative Law Judge (ALJ) can be viewed by visiting the Commission's Internet website at www.fmc.gov

 FMC ‘ATFI’ System Taken Off-Line: Tariff History Temporarily Unavailable

The FMC's Automated Tariff Filing and Information System (ATFI) has been taken off-line. This database system maintains the official record of FMC tariffs filed between mid-1993 and April 30, 1999. ATFI is expected to be unavailable for at least the first two weeks of April. This will not inconvenience many tariff users because it involves only historical tariff records. Current ocean carrier and NVOCC tariffs are no longer maintained or filed by the FMC in a central database. Instead, tariffs are maintained in Internet accessible databases, in a detailed format specified by the FMC in its regulations (issued in 46 CFR Part 520). Most ocean carriers and NVOCCs use professional tariff publishers to maintain their tariffs. A complete listing of the locations (web sites) of tariffs published in compliance with FMC regulations is accessible at www.fmc.gov under ‘View Carrier List.’

 FMC Re-Issues OTI Licenses Recently Terminated Licenses Restored

The FMC has re-issued Ocean Transportation Intermediary (OTI) licenses to seven (7) ocean freight forwarders and NVOCCs whose licenses were recently terminated due to their failure to maintain surety bonds. All these licensees are US based organizations; the 'State' column below identifies the US State of the licensee's home office. Four (4) digit license numbers (FMC #) and license numbers ending with the letter "F" or "R"are OTI-Freight Forwarders; license numbers ending with "N" are OTI-NVOCCs; license numbers ending with "NF" are for organizations licensed to operate in the USA as both ocean freight forwarders and NVOCCs. For more information visit our web site at www.dpiusa.com

 

FMC #

Legal Name and Trade Name (if any)

State

Date Reissued

2849F

Amex International, Inc.

DC

05Mar2001

15917N

Golden Jet-L.A., Inc., dba Golden Jet Freight Forwarders

CA

14Jan2001

4335NF

International Services, Inc.

FL

01Dec2000

4444N

Lloyd International, Inc.

MA

10Jan2001

2023F

Pike Shipping Co., Inc.

LA

30Jan2001

3863F

Tera TradingGroup, Inc., d/b/a T.T.G. International Freight Forwarders

FL

14Jan2001

16562F

U.S. Brokers (BOS) Inc.

MA

18Jan2001

 FMC Terminates Licenses of 13 OTI-Freight Forwarders and NVOCCs

The FMC recently terminated the licenses of thirteen (13) Ocean Transportation Intermediaries (OTIs). Most of these terminations are due to failure to maintain surety bonds. In one case, the license was surrendered to the FMC voluntarily by a company that has discontinued its OTI activities. All these licensees are US based organizations. See above for the key to FMC's license numbering scheme.

FMC #

Legal Name and Trade Name (if any)

State

Date Revoked

4601F

Advanced Cargo Services Corp.

CA

15Feb2001

4620F

Benjamin N.K. Ho d/b/a Horizon International Co.

CA

28Jan2001

15940N

Chunho Sea-Air Incorporated

IL

28Jan2001

3262N

GES Logistics, Inc.

CA

21Feb2001

3777F

J.G. International Freight Forwarding, Inc.

FL

06May1999

4268F

J & S Universal Services, Inc. dba Patrick & Rosenfeld Shipping

FL

26Jan2001

14718N

Kintetsu Flexipak, Inc.

TX

07Feb2001

14173NF

Pactrans Marine, Inc.

CA

26Jan2001

15474N

Phantom Transport, Inc.

CA

09Feb2001

3550F

Seair Export Import Services, Inc.

FL

09Feb2001

4541F

Southeast Logistics International, Inc.

GA

09Feb2001

16476NF

Transportation Logistics Int'l., Inc.

Nj

22Feb2001

11591NF

United Van Lines, Inc. surrendered license voluntarily

MO

23Jan2001

     Volume 5   Number 4      April 5, 2001    

SIGNALS™ is provided as a service to its customers by Distribution-Publications, Inc. © 2001. All rights reserved.

"Navigating the Regulatory Seas" is a service mark of Distribution-Publications, Inc.

All Issues of SIGNALS™ are available on the web at www.dpiusa.com

The information contained herein is obtained from reliable sources. It is subject to change at any time, however, depending on changes in laws and regulations. While we continually attempt to monitor this information, we do not guarantee its accuracy and are not responsible for any damages suffered by any party in reliance on it.

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