Federal Maritime Commission Secures Over $2.3M in Civil Penalties from Three Companies

The Federal Maritime Commission (FMC) has successfully negotiated compromise agreements with three companies, collectively resulting in civil penalty payments exceeding $2.3 million.

The agreements are the outcome of extensive investigations carried out by the Commission’s Bureau of Enforcement, Investigations, and Compliance (BEIC), which was created as a result of the Ocean Shipping Reform Act of 2022.

Shipping giant CMA CGM, S.A., an ocean common carrier, settled allegations of overbroad application of its merchant definition in a bill of lading by paying a hefty $1,975,000. The company was accused of wrongfully billing a third party. In addition to the financial penalty, CMA-CGM has agreed to reform its practices and amend its U.S. tariff rules, ensuring future compliance by limiting the merchant definition in its bills of lading to shippers, consignees, and individuals with a beneficial interest in the cargo.

Vanguard Logistics Services (USA), Inc., an ocean transportation intermediary (OTI), resolved allegations of unlawful acceptance of cargo from OTIs lacking necessary sureties by paying $175,000. Vanguard is now committed to auditing its internal practices and procedures and will provide quarterly updates to BEIC.

Shipco Transport, Inc., another OTI, resolved three allegations of misconduct with a $155,000 payment. The company was accused of unlawfully accepting cargo from OTIs without necessary sureties, allowing an unlicensed OTI to secure transportation for property at reduced rates, and enabling another OTI to secure transportation at less than the applicable rates by granting access to service contracts of an ocean common carrier.

Both Vanguard and Shipco have pledged full cooperation with BEIC in any future investigations or enforcement efforts. These compromise agreements were reached before the Commission initiated any formal enforcement actions, and none of the three companies admitted any violations of the law.

The civil penalty payments will be deposited into the United States’ General Fund. The Federal Maritime Commission does not receive any portion of the collected financial penalties.

Unlock Exclusive Insights Today!

Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.

Sign Up