China Shipping fined US$440,000 for 'unfair' rate cutting.
Without admitting guilt, China Shipping Container Line (CSCL) has settled for a US$440,000 penalty from the US Federal Maritime Commission (FMC) for improper rate cutting on 1,000 shipments over four years, contrary to the 1984 US Shipping Act.
The carrier and three non-vessel owning carriers agreed to pay a total of $625,000 and desist from such activities and cooperate with further inquiries, reported American Shipper.
CSCL was charged with providing transportation services to intermediaries without tariffs, licences or bonds, mis-describing cargo and charges of shippers and charging below tariff rates.
New Jersey-based ATI USA Inc was also fined $115,000 for allegedly mis-declaring size of automobile shipments and charging below published rates.
Improper access to service contracts and charging below published tariffs were directed at the NVOs of Texas-based NVO MT Global Freight Solutions Inc and California-based Cosa Freight Inc, which included a violation of mis-described cargo shipped and paid $35,000 each in fines.
FMC chairman Richard A Lidinsky said the penalties should serve as a reminder to carriers "tempted to disregard the commission's rules against unfair or deceptive practices."