FEDERAL MARITIME COMMISSION

FMC ANNOUNCES COMPROMISE AGREEMENTS

NR 00-17

Washington, D.C. 20573

CONTACT VERN W. HILL, DIRECTOR

BUREAU OF ENFORCEMENT AT (202) 523-5783

FOR RELEASE: NOVEMBER 30 , 2000

The Federal Maritime Commission today announced eight compromise agreements resulting in civil penalties in an aggregate amount of $630,000. The agreements were entered into with vessel operating common carriers, a conference and its member carriers, and ocean transportation intermediaries operating as carriers and shippers in the U.S. foreign trades, including the Transatlantic, Transpacific, Central America, South America and Caribbean trades. The compromise agreements are:

Asia-North America Eastbound Rate Agreement and its Members. Asia-North America Eastbound Rate Agreement ("ANERA") is an ocean common carrier conference, with eight carrier members. ANERA has suspended operations under conference authority except for "wind-down"activities. It was alleged that ANERA and its members were signatories to at least 105 service contracts containing "opt-out" provisions which were undisclosed in ANERA's essential terms publication in violation of section 8(c) of the Shipping Act of 1984, as well as the Commission's regulations. In compromise of these allegations, ANERA and its members made a monetary payment of $110,000. There was no admission of violation.

A.T.I. U.S.A., Inc. A.T.I. U.S.A., Inc. ("ATI") is a licensed ocean transportation intermediary located in Elizabeth, NJ, operating as a non-vessel-operating common carrier and ocean freight forwarder in the Transatlantic trade. It was alleged that ATI violated section 10(b)(1) of the Shipping Act of 1984 by charging less compensation for the transportation of property than the rates and charges set forth in its tariff. In addition, it was alleged that ATI violated section 19(d)(4) of the Act by collecting freight forwarder compensation on shipments in which it had a beneficial interest. In compromise of these allegations, ATI paid the sum of $25,000. There was no admission of violation.

E.H. Harms USA, Inc. E.H. Harms USA, Inc. ("Harms"), is a licensed ocean transportation intermediary located in Elizabeth, NJ. Harms operates as a non-vessel-operating common carrier and an ocean freight forwarder in the Transatlantic trade. It was alleged that Harms obtained ocean transportation at less that applicable rates and charges in violation of section 10(a)(1) of the Shipping Act of 1984 and the Commission's regulations at 46 C.F.R. § 514.7(e), by entering into service contracts as an ocean freight forwarder. It was also alleged that Harms violated section 19(d)(4) of the Act by collecting freight forwarder compensation for service contract shipments in which it had a beneficial interest. In compromise of these allegations, Harms paid the sum of $40,000. There was no admission of violation by Harms.

Hamburg-Sudamerikanische Dampfschifffahrtsgesellschaft Eggert & Amsinck ("Columbus Line"). Columbus Line is a vessel operating common carrier located in Hamburg, Germany and, as pertinent to this matter, operating in the South America trades. It was alleged that Columbus Line violated sections 10(b)(1) and 10(b)(4) of the Shipping Act of 1984 by allowing shipments, which did not qualify for transportation under an Inter-American Freight Conference service contract, to be transported at service contract rates rather than applicable tariff rates. Pursuant to a compromise agreement, Columbus Line made a payment of $70,000. There was no admission of violation.

Inter-Shipping Chartering Co. Inter-Shipping Chartering Co. ("Inter-Shipping") is a licensed, tariffed and bonded NVOCC located in Miami, FL and operating in the South America trades. It was alleged that Inter-Shipping violated section 10(a)(1) of the Shipping Act of 1984 by obtaining transportation of property for less than applicable rates and charges by receiving rebates and other rate concessions. In compromise of these allegations, Inter-Shipping paid the sum of $20,000. There was no admission of violation.

Jardine Logistics Services (HKG) Ltd. Jardine Logistics Services (HKG) Ltd. ("Jardine") is a licensed ocean transportation intermediary located in Hong Kong operating as a non-vessel-operating common carrier in the Transpacific trades. It was alleged that Jardine violated section 10(a)(1) of the Shipping Act of 1984 by obtaining transportation of property for less than applicable rates and charges by using service contracts to which it was not signatory. In addition, it was alleged that Jardine violated sections 10(b)(1) and 10(b)(2) of the Act by providing ocean transportation services not in accordance with the rates and charges set forth in its tariff. Jardine made a monetary payment of $115,000 in compromise of these allegations. There was no admission of violation.

King Ocean Services, S.A. King Ocean Services, S.A. ("King Ocean") is a Panamanian vessel operating common carrier with operating headquarters in Miami, FL. King Ocean provides transportation services in the South America and Caribbean trades. It was alleged that King Ocean violated sections 10(b)(1), 10(b)(2) and 10(b)(4) of the Shipping Act of 1984, and sections 10(b)(1) and 10(b)(2)(A) of the Shipping Act of 1984, as amended. It was alleged that shippers were allowed to obtain ocean transportation for less than applicable rates and charges on certain shipments transported from the U.S. to Trinidad, Central America and Venezuela by the payment of rebates, by receiving less than applicable rates and charges, by providing local drayage without charge, by misuse of rules and practices relating to equipment substitution and by providing transportation pursuant to unfiled service contracts. King Ocean paid the sum of $200,000 in compromise of these allegations. There was no admission of violation.

Venchi International Corp. and Patricia Nazar. Venchi International Corp. ("Venchi") was a non-vessel-operating common carrier located in Miami, FL and Patricia Nazar was the President and sole owner of Venchi. It was alleged that Venchi and Patricia Nazar violated sections 10(a)(1), 10(b)(1) and 19(a) of the Shipping Act of 1984, by obtaining transportation of property for less than applicable rates and charges by receiving rebates and other rate concessions in the South America trades, by charging rates other than those set forth in Venchi's filed or published tariffs and by acting as an ocean freight forwarder without a license issued by the Commission. In compromise of these violations, Venchi and Patricia Nazar admitted each and all violations as alleged, ceased to do business as an ocean transportation intermediary, withdrew all applications for licensing as an ocean transportation intermediary and made a monetary payment of $50,000.

These compromise agreements resulted from investigations conducted by Area Representatives of the Bureau of Enforcement located in Los Angeles, Miami, New York, Seattle and Washington, DC. Staff attorneys with the Bureau of Enforcement negotiated the compromise agreements.

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