FMC Steps Up Tariff-Compliance Enforcement With Major Penalties

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  • Hyundai Glovis pays $1.3 million for tariff-related violations.
  • Olympiad Line settles for $50,000 over tariff inconsistencies.
  • FMC uses expanded OSRA powers to intensify oversight.

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.

Hyundai Glovis Pays $1.3 Million for Shipping Act Violations

Hyundai Glovis Co. Ltd. has settled claims that:

  1. They provided liner services that didn’t align with the published tariff rates and charges.
  2. They 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.

Olympiad Line LLC Settles for $50,000

Olympiad Line LLC, a non-vessel-operating common carrier, has agreed to pay $50,000 after facing allegations of providing services that didn’t match their published tariff rates and practices. Similar to the previous case, this settlement also came 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:

  1. Shifted the burden of proof onto carriers regarding detention and demurrage.
  2. Mandated greater transparency in billing.
  3. Gave the FMC the authority to order refunds.
  4. 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