The Federal Maritime Commission recently executed six compromise agreements recovering a total of $218,750 in civil penalties. The agreements were reached with one vessel-operating common carrier and five ocean transportation intermediaries (OTI). The agreed penalties resulted from investigations conducted by the Commission's Area Representatives in Houston, Los Angeles, New York, South Florida, and Washington, D.C. FMC staff attorneys negotiated the compromise agreements. In settlement of these compromise agreements the parties involved did not admit to any violations of the Shipping Act or FMC regulations. The compromise agreements are as follows:

Network Shipping Ltd.: Network Shipping is a vessel-operating common carrier based in Coral Gables, Florida. Network Shipping allegedly violated the Shipping Act by transporting empty refrigerated containers to Ecuador under an agreement that was not filed with the FMC. The FMC further alleged that Network Shipping provided liner transportation that was not in accordance with the rates and charges set forth in Network Shipping's published tariff. Network Shipping paid the Commission $100,000 in compromise of these allegations.

JAK Holding Inc.: JAK Holding Inc., doing business as Speedier Logistics, is a licensed and bonded non-vessel-operating common carrier (NVOCC) and freight forwarder based in Jamaica, New York. JAK allegedly violated the Shipping Act by misdescribing the commodities they shipped, and improperly accessing service contracts to which they were not a signatory or affiliate, in order to obtain transportation services at less than applicable rates and charges. JAK also allegedly violated the Shipping Act by providing ocean transportation services at rates or charges other than those provided for in its NVOCC tariff. JAK Holding paid the Commission $33,750 in compromise of these allegations.

Perfect Logistics, Inc.: Perfect Logistics is a licensed and bonded NVOCC located in Torrance, California. The FMC alleged that Perfect Logistics violated the Shipping Act by misdescribing the commodities they shipped, and by unlawfully accessing service contracts to which they were not a signatory or affiliate, in order to obtain transportation services at less than applicable rates and charges. Perfect Logistics also allegedly violated the Shipping Act by providing ocean transportation services at rates or charges other than those published in its tariffs. In compromise of these allegations, Perfect Logistics paid $30,000.

J & S Universal Services Inc. and Ocean Cargo Logistics Group LLC.: J & S Universal, doing business as Patrick & Rosenfeld Shipping, and Ocean Cargo Logistics Group, LLC are based in Miami Florida. These entitles allegedly violated the Shipping Act by acting as a NVOCC without obtaining an OTI license from the Commission, without obtaining a bond, and without publishing an electronic tariff. In addition, Commission staff alleged the entities violated the Shipping Act by obtaining transportation services at less than applicable rates and charges by unlawfully accessing service contracts to which they were not a signatory or affiliate. Ocean Cargo also agreed to seek a Commission license to operate as an OTI at the earliest possible time. In compromise of these allegations, the entities paid $25,000.

Awilda Shipping Inc.: Awilda Shipping Inc. is based in Corona, New York. Awilda Shipping allegedly violated the Shipping Act by acting as a NVOCC without obtaining an OTI license, without obtaining a bond, and without publishing an electronic tariff. Awilda Shipping also agreed to seek licensed an OTI license at the earliest possible time. Under the terms of the compromise, Awilda Shipping paid $15,000.

Sifax Shipping Company LLC: Sifax Shipping is based in Houston, Texas. Sifax Shipping allegedly acted as an ocean transportation intermediary without obtaining a license from the Commission, and without providing evidence of a freight forwarder bond, in violation of the Shipping Act. Sifax Shipping paid $15,000 in compromise of these allegations.

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The Westbound Transpacific Stabilization Agreement (WTSA), FMC Agreement No. 011325, whose member lines serve the U.S. export trades from the USA to East Asia, announced decreases to bunker and inland fuel charges applicable for the period of October 1, 2010 to December 31, 2010.

Bunker Adjustment Factors (BAF), effective: October 1, 2010 - December 31, 2010
Traffic to/from and via:

US Atlantic/Gulf Coast Ports	US Pacific Coast Ports
US$ 799 per 20ft dry ctr	US$ 402 per 20ft dry ctr
US$ 999 per 40ft/45ft dry ctr	US$ 503 per 40ft/45ft dry ctr
US$ 1330 per 40ft/45ft reefer ctr	US$ 708 per 40ft/45ft reefer ctr

The Inland Fuel Charge (IFC) for Oct. 1 thru Dec. 31, 2010 will be decreased to US$ 232 per ctr for rail and intermodal rail/truck shipments, and US$ 67 per ctr for local/regional truck shipments. Currency Adjustment Factors (CAF) for the same period will remain unchanged at: Japan 0%, Korea 0%, Taiwan 5% and Singapore 17%. The WTSA updates BAF, IFC, and CAF surcharges on a quarterly basis.

WTSA is a voluntary discussion and research forum of 10 container shipping lines serving the trade from ports and inland points in the U.S. to destinations throughout Asia. The WTSA’s 10 member carriers are American President Lines, COSCO Container Lines, Evergreen Marine Corp., Hanjin Shipping, Hapag-Lloyd Container Line, Hyundai Merchant Marine, "K" Line, NYK Line, OOCL and Yang Ming Marine.  For more info visit www.wtsacarriers.org.

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The carrier members of the Transpacific Stabilization Agreement (TSA), FMC Agreement No. 011223, serving the East Asia/USA trade lane announced increases to Bunker Adjustment Factors (BAF) effective October 1, 2010 calculated using the group’s old monthly BAF formula.  The TSA Carriers also announced decreases to quarterly Inland Fuel Charges (IFC) and quarterly BAF calculated using their new calculation formula. 

Bunker Adjustment Factors (BAF) for October 2010 calculated using TSA’s old monthly formula will be US$ 688 per 20ft ctr, US$ 860 per 40ft ctr, US$ 968 per 40ft hi-cube ctr, US$ 1089 per 45ft ctr, and US$ 19 per WM (LCL).  Quarterly BAF according to TSA’s new formula are as follows for the Oct. 1 thru Dec. 31, 2010 period: shipments via West Coast Service - US$ 278 per 20ft ctr, US$ 348 per 40ft ctr, US$ 392 per 40ft hi-cube ctr, US$ 440 per 45ft ctr; shipments via East Coast Service - US$ 551 per 20ft ctr, US$ 689 per 40ft ctr, US$ 775 per 40ft hi-cube ctr, US$ 872 per 45ft ctr. 

Inland Fuel Charges (IFC) effective Oct. 1 thru Dec. 31, 2010 will decrease to US$ 232 per ctr for shipments to IPI destinations served via West Coast Ports, US$ 116 per ctr for shipments to RIPI destinations served via East Coast Ports, and US$ 67 per ctr for shipments to Group 4 Points in California, Oregon and Washington and to East Coast local store door points.  CAF for shipments from Japan will increase from 16 to 17 percent effective Oct. 1 thru Dec. 31, 2010.

The TSA Carriers will continue to impose Peak Season Surcharges (PSS) during September.  The end date for these surcharges is not yet set.  PSS amounts vary from carrier to carrier, but are most commonly US$ 600 per 40ft ctr on shipments to US Pacific Coast Ports and US$ 800 per 40ft container to US Inland Points and to US Atlantic Coast Ports. 

The TSA’s 15 carrier members are American President Lines, CSCL, CMA-CGM, COSCO Container Lines, Evergreen Marine, Hanjin Shipping, Hapag-Lloyd Container Line, Hyundai Merchant Marine, "K" Line, 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.

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