The U.S. Federal Maritime Commission has wrapped up two enforcement cases, leading to a hefty $1.35 million in civil penalties from a major shipping carrier and an NVOCC. This move highlights their intensified focus on ensuring compliance with tariff regulations, reports gCaptain.
Major Carrier Pays $1.3 Million for Shipping Act Violations
A large ocean carrier has settled claims that:
1. It provided liner services that did not match its published tariff rates and charges.
2. It operated without properly publishing tariffs for certain services.
FMC staff pointed out that these issues persisted for over a year across various shipments. The company agreed to pay $1.3 million but didn’t admit any liability.
NVOCC Settles for $50,000
An NVOCC has agreed to pay $50,000 after facing allegations of offering services inconsistent with its published tariff rates and practices. This settlement was also made without any admission of wrongdoing.
OSRA 2022 Powers Driving Increased Enforcement
These actions showcase the FMC’s growing assertiveness since the Ocean Shipping Reform Act of 2022, which:
- Shifted the burden of proof onto carriers regarding detention and demurrage.
- Mandated greater transparency in billing.
- Gave the FMC the authority to order refunds.
- Allowed the agency to kick off investigations without needing shipper complaints.
These enhanced tools are crucial for the Commission’s extensive compliance inquiries.
Part of a Broader Post-OSRA Crackdown
The recent settlements are part of a broader series of actions aimed at tackling tariff violations and improper practices by carriers. In the current post-OSRA regulatory landscape, the FMC is taking a much more proactive stance to ensure that carriers and intermediaries adhere to all Shipping Act requirements.
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Source: gCaptain
