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UASC and NVOCCs fined for US Shipping Act violations

The Federal Marine Commission (FMC) is going to collect $1,227,500 in civil penalties from United Arab Shipping Company (UASC) and seven non-vessel-operating common carriers (NVOCCs) for violations of the US Shipping Act.

In announcing the settlement of the case on Tuesday the FMC said the deal was a compromise whereby none of the accused parties admitted violating the Act but did accept the fines.

UASC, headquartered in Dubai, agreed to pay $537,500 to FMC.

A core issue was a claim that UASC allegedly unlawfully rebated to its NVOCC customer, Falcon Maritime and Aviation Inc, a portion of the service contract rate in the form of an administrative fee not identified in the contract, and for which no services were provided. In addition UASC allegedly provided transportation not in accordance with the rates and charges in its published tariff.

UASC operates worldwide and services the Americas from Peachtree Corners, Georgia.

An NVOCC is a cargo consolidator which does not own any vessel, but acts as a carrier legally by accepting required responsibilities of a carrier and which issues its own bill of lading.

NVOCCs sign contracts with shipping lines to guarantee the shipment of certain number of units each year. In return the shipping lines offer favorable rates to the NVOCC.

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Published on:
August 5, 2015
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