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FMC Secures $1.35 Million in Shipping Act Penalties from Two Carriers

The U.S. Federal Maritime Commission has concluded two enforcement actions resulting in $1.35 million in civil penalty payments from a major vessel operator and a non-vessel-operating common carrier, highlighting the agency’s continued focus on tariff compliance in the wake of expanded regulatory powers.

Hyundai Glovis, Co. Ltd., a Seoul-based vessel-operating common carrier operating in U.S.-foreign trades and globally, paid $1.3 million to settle allegations that it violated the Shipping Act. The FMC alleged the company provided liner service that did not conform to rates and charges in its published tariff and operated without publishing appropriate tariffs for some services—practices that staff said persisted for over a year across numerous shipments.

In a separate action, NVOCC Olympiad Line LLC agreed to pay $50,000 over allegations it provided service inconsistent with its published tariff rates and practices.

Neither party admitted to violations as part of the compromise agreements. The settlements were deposited into the U.S. General Fund, with the FMC receiving no portion of the payments.

The enforcement actions reflect the Commission’s heightened assertiveness following the Ocean Shipping Reform Act of 2022, which substantially expanded the FMC’s authority. OSRA shifted the burden of proof to carriers on detention and demurrage charges, mandated greater billing transparency, and empowered the agency to order refunds and self-initiate investigations without shipper complaints.

The new tools underpin much of the Commission’s current activity—from inquiries into tariff compliance and alleged ‘unreasonable refusals to deal,’ to broader probes into carrier billing practices and service issues.

The cases represent the latest in a series of FMC enforcement actions targeting tariff violations and carrier practices in today’s post-OSRA enforcement landscape where the FMC is far more assertive in holding carriers and intermediaries accountable under the Shipping Act.

Source: gcaptain.com

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