CMA CGM Hit with $1.975m Fine in the United States

The Federal Maritime Commission has reached compromise agreements with three companies, resulting in the collection of over $2.3 million in civil penalties and commitments from each company to reform specific business practices.

French shipping company CMA CGM paid the largest fine, totaling $1.975 million, to resolve allegations that it overly broadly defined and applied its definition of "merchant" in a bill of lading, demanding payment from a third party who should not have been billed.

American ocean transportation intermediary (OTI) Vanguard Logistics Services paid $175,000 to settle allegations that it knowingly and willfully accepted cargo from, or transported cargo for, the accounts of OTIs that did not have the necessary bonds, insurance, or other sureties as required by law.

Shipco Transport, another OTI, paid $155,000 to address three separate allegations of misconduct. First, that it knowingly and willfully accepted cargo from or transported cargo for OTIs lacking the required bonds, insurance, or other sureties.

Second, that it allowed an unlicensed OTI to obtain transportation for property at reduced rates. Third, that it enabled another OTI to obtain transportation for property at reduced rates by providing access to ocean common carrier service contracts to which the OTI was not a signatory.

These compromise agreements were reached before the commission initiated formal enforcement actions. The three companies did not admit to any legal violations.