The United States Federal Maritime Commission (FMC) has entered into an agreement with French ocean carrier CMA CGM, after the investigations by the Commission’s Bureau of Enforcement, Investigations, and Compliance (BEIC).
CMA CGM paid US$1,975,000 to resolve allegations that it overbroadly defined and applied its definition of merchant in a bill of lading to demand payment from a third party who should not have been billed.
According to FMC’s statement, the Marseille-based shipping company has terminated this practice and ensures future compliance by amending its US tariff rules to limit the definition of merchant in its bills of lading to shippers, consignees, and persons with a beneficial interest in the cargo as defined by Commission regulations at 46 C.F.R. § 515.2(b).
Furthermore, CMA CGM agreed to furnish restitution to impacted third parties in the form of refunds and waivers. The agreement includes CMA-CGM’s commitment to comply with the Demurrage and Detention Billing Rule (46 C.F.R. Part 541) upon the rule’s effective date of May 28, 2024.
In addition, FMC agreed with another two ocean transportation intermediary (OTI) companies, Vanguard Logistics Services (USA) and Shipco Transport with the first one facing a penalty of US$175,000 to resolve allegations that it knowingly and willfully accepted cargo from, or transported cargo for, the accounts of OTIs that did not have bonds, insurance, or other sureties as required by law.
Moreover, Shipco paid US$155,000 to resolve three allegations of misconduct. First, it knowingly and willfully accepted cargo from or transported cargo for the accounts of OTIs that did not have bonds, insurance, or other sureties as required by law. Secondly, it allowed an unlicensed OTI to obtain transportation for property at less than the rates or charges that would otherwise be applicable. Thirdly, it allowed another OTI to obtain transportation for property at less than the rates or charges that would otherwise be applicable by providing access to service contracts of an ocean common carrier to which the OTI was not a signatory.
Both Vanguard and Shipco have agreed to fully cooperate with BEIC in possible future investigatory or enforcement efforts.
