FMC Chairman Daniel B. Maffei: The civil penalty agreements “ship a transparent message to worldwide delivery group that ocean carriers should absolutely adjust to the U.S. authorized obligations.”
Two ocean widespread carriers — ONE and Wan Hai — have paid a mixed whole of $2.65 million in FMC civil penalties to resolve allegations of misconduct introduced by the Federal Maritime Commission’s Bureau of Enforcement, Investigations, and Compliance.
“The agreements being announced today send a clear message to international shipping community that ocean carriers must fully comply with the U.S. legal obligations,” mentioned Federal Maritime Commission Chairman Daniel B. Maffei. “I commend our Bureau of Enforcement, Investigations, and Compliance for their efforts, which resulted in both meaningful civil penalties, and relief for impacted shippers.”
The agreements adopted one which noticed Hapag Lloyd AG pay $2 million in civil penalties again in June.
All the agreements resolve alleged violations of 46 U.S.C. § 41102(c) which prohibits unjust and unreasonable practices and regulations associated to or linked with receiving, dealing with, storing or delivering property.
Ocean Network Express Pte Ltd. (ONE) entered right into a compromise settlement with the FMC in April to resolve allegations it violated 46 U.S.C. § 41102(c) by assessing detention costs when appointments had been unavailable throughout allotted free time to return gear. Under the phrases of the settlement, ONE agreed to pay a $1.7 million civil penalty. The settlement incorporates a major new compromise provision whereby ONE agreed that along with paying civil penalties, it’ll additionally furnish restitution to impacted shippers within the type of refunds and waivers. In concluding the compromise, ONE additionally acknowledged its dedication to adjust to the Ocean Shipping Reform Act of 2022, in addition to the Interpretative Rule on Detention and Demurrage.
Separately, the Commission reached a settlement settlement with Wan Hai Lines, Ltd. and Wan Hai Lines (USA) Ltd. (Wan Hai) to shut an Order of Investigation and Hearing (Docket No. 21-16) issued by the Commission in December 2021. Wan Hai agreed to pay $950,000 in civil penalties to handle allegations that it violated 46 U.S.C. § 41102(c) by failing to look at and implement simply and affordable practices relating to its costs associated to empty container returns. In addition to fee of a civil penalty, Wan Hai refunded the impacted shippers all detention costs collected beneath the invoices at subject and has carried out corrective actions to forestall future violations and guarantee compliance with the Commission’s Interpretive Rule on Detention and Demurrage.
“The agreements being announced today send a clear message to international shipping community that ocean carriers must fully comply with the U.S. legal obligations,” mentioned Federal Maritime Commission Chairman Daniel B. Maffei. “I commend our Bureau of Enforcement, Investigations, and Compliance for his or her efforts, which resulted in each significant civil penalties, and reduction for impacted shippers
In June 2022, Hapag Lloyd AG paid $2 million in civil penalties to resolve allegations it violated 46 U.S.C. § 41102(c) in the way it assessed detention costs.
A compromise settlement, such that concluded with ONE, is reached previous to the Commission initiating formal enforcement motion in opposition to a focused entity. A settlement settlement, similar to that eached with Wan Hai, concludes an ongoing enforcement continuing. Both ONE and Wan Hai didn’t admit to any violation of regulation.
FMC civil penalties are paid on to the General Fund of the U.S. Treasury. The Federal Maritime Commission doesn’t obtain any income when assessing civil penalties.
