The Federal Maritime Commission (FMC or Commission) investigates and negotiates settlements and informal compromises of civil penalties in relation to potential violations of the Shipping Act and Commission regulations. Recently, the Commission completed two compromise agreements recovering a total of $1,350,000 in civil penalties. The agreements were reached with a vessel-operating common carrier (VOCC) and a non-vessel-operating common carrier (NVOCC).
One compromise agreement was reached with Hyundai Glovis, Co. Ltd. (Hyundai Glovis), a VOCC headquartered in Seoul, South Korea, that operates in the U.S.-foreign trades and globally. The compromise agreement resolved allegations that Hyundai Glovis violated the Shipping Act through activities that included: (1) providing service in the liner trade that was not in accordance with the rates, charges, classifications, rules, and practices contained in Hyundai Glovis’ tariff, and (2) providing services as a common carrier without publishing the appropriate tariffs showing all its active rates and charges. FMC staff alleged that these practices persisted for over a year and involved numerous shipments. Hyundai Glovis made a payment of $1,300,000 in compromise of these allegations.
A compromise agreement was also reached with NVOCC Olympiad Line LLC (Olympiad) for allegations that Olympiad violated the Shipping Act by providing service in the liner trade that was not in accordance with the rates, charges, classifications, rules, and practices contained in its published tariff. Olympiad made a payment of $50,000 in compromise of these allegations.
The parties compromised and agreed to the payment of civil penalties, but did not admit to violations of the Shipping Act or Commission regulations.
Penalty payments are deposited into the U.S. General Fund of the United States. The Federal Maritime Commission receives no portion of these payments.