According to a recent publication by the U.S. Federal Maritime Commission (FMC), two significant enforcement actions have resulted in a total of $1.35 million in civil penalties against a prominent vessel operator and a non-vessel-operating common carrier (NVOCC). This move underscores the agency’s commitment to ensuring compliance with tariff regulations, especially following its expanded regulatory powers.
Hyundai Glovis, Co. Ltd., based in Seoul and engaged in international shipping operations, has agreed to pay $1.3 million to resolve allegations of violating the Shipping Act. The FMC claimed that Hyundai Glovis provided liner services that did not align with its published rates and failed to publish appropriate tariffs for certain services-a situation that reportedly persisted for over a year across multiple shipments.
In another case, NVOCC Olympiad Line LLC will pay $50,000 due to claims of inconsistent service relative to its published tariff rates and practices.
Neither company admitted wrongdoing as part of their settlement agreements, which will contribute directly to the U.S. General Fund without any portion going back to the FMC.
This enforcement action reflects an increased assertiveness from the Commission following the Ocean Shipping Reform Act (OSRA) of 2022, which significantly broadened its authority. OSRA shifted responsibilities onto carriers regarding detention and demurrage charges while also mandating enhanced billing transparency and allowing self-initiated investigations by the FMC without needing shipper complaints.
The new regulatory tools are central to many ongoing inquiries into tariff compliance issues as well as alleged unreasonable refusals by carriers-demonstrating how proactive the FMC has become in addressing billing practices and service concerns within today’s shipping landscape post-OSRA.
