What's Happening?
The Federal Maritime Commission (FMC) has successfully negotiated settlements resulting in the recovery of $1,350,000 in civil penalties from two shipping companies. Hyundai Glovis, a vessel-operating common carrier, paid $1,300,000 to resolve allegations
of violating the Shipping Act by not adhering to published tariffs. Olympiad Line LLC, a non-vessel-operating common carrier, paid $50,000 for similar violations. These settlements were reached without the companies admitting to any violations. The penalties are deposited into the U.S. General Fund, with the FMC receiving no portion of the payments.
Why It's Important?
The recovery of penalties by the FMC underscores the importance of regulatory compliance in the shipping industry. These actions highlight the FMC's role in enforcing the Shipping Act and ensuring fair practices in maritime trade. The settlements serve as a reminder to shipping companies of the need to adhere to published tariffs and regulations. The financial penalties also contribute to the U.S. General Fund, supporting government operations. This development may encourage other companies to review their compliance practices to avoid similar penalties.
