Recently, the Federal Maritime Commission (FMC) in the United States has terminated two enforcement actions, ordering a vessel operator and a non-vessel-operating common carrier to pay $1.35 million in civil penalties, highlighting the agency's ongoing focus on freight compliance following expansion of its regulatory authority.
Hyundai Glovis, Co. Ltd., a logistics company headquartered in Seoul and part of the Hyundai Motor Group, conducts business in U.S. foreign trade and globally. The company paid $1.3 million to resolve allegations that it violated the Shipping Act. The FMC charged that the company's liner service did not conform to the rates and charges set forth in its published tariffs and that certain services were not accompanied by a published tariff. These violations, according to staff, continued over a year across multiple shipments.
In another action, non-vessel-operating common carrier Olympiad Line LLC agreed to pay $50,00 to resolve allegations that it provided services inconsistent with its published tariff rates and practices.
As part of a compromise agreement, neither party admitted to any wrongdoing. The settlements were into the U.S. general fund, and no money was awarded to the FMC.
These enforcement actions reflect a more robust posture by the Commission following the passage of Ocean Shipping Reform Act of 2022 (OSRA). OSRA shifted the burden of proof for demurrage and detention charges to the carrier, mandated increased bill, and authorized the agency to order refunds and initiate investigations without a shipper complaint.
The new tools have supported much of the Commission's current activity, from into freight compliance and so-called "unreasonable refusals to deal" to broader investigations into carrier billing practices and service issues.
These cases are the latest in a of enforcement actions taken by the FMC addressing rate violations and carrier practices in the new enforcement environment following the passage of the OSRA. In the current enforcement environment, the FMC shown itself to be more aggressive in holding carriers and intermediaries responsible under the Shipping Act.
Last
Starbulk orders three new ships! Greek shipping giants place orders with Chinese shipyards in quick succession.
According to TradeWinds, Greek dry bulk shipping giant Star Bulk Carriers, the US-listed, Athens- major shipowner with 150 ships i
Next
Port explosion! A warehouse swallowed by a raging fire, with damages amounting to several million euros.
On the evening of Sunday, November 16th, the port of Cork, Ireland (IECOK), was filled with the of explosions, as a large fire des
