UASC and FMC reach compromise on Shipping Act violation
The Federal Maritime Commission (FMC) in the United States has reached a compromise agreement with Dubai-based and Qatar-owned United Arab Shipping Company (UASC) for alleged violations of the US Shipping Act and FMC’s regulations.
UASC, along with six non-vessel-operating common carriers (NVOCCs) had been charged with US $1,227,500 in civil penalties and although all seven shipping lines settled and agreed to penalties, none admitted to any violations.
The FMC had charged UASC with unlawfully rebating to its NVOCC customer, Falcon Maritime and Aviation Inc., a portion of the applicable service contract rate in the form of an administrative fee not identified in the service contract, and for which no services were provided.
UASC also allegedly provided transportation not in accordance with the rates and charges in its published tariff. Under the terms of the compromise, UASC paid US $537,500 to FMC.
“I commend the staff at FMC in fulfilling their responsibility to protect the American shipping public from entities who may be in breach of the Shipping Act,” said FMC chairman Mario Cordero.
“The compromise agreements demonstrate how serious we are about protecting the international shipping marketplace from fraud and threats to cargo security, and in our commitment to shield the many lawful participants in international trade from commercial deception and other unlawful trading practices.,” he added.