NVOCC HSIN Ordered to Pay Over $76,000 Reparations

The Federal Maritime Commission ordered HSIN Silk Road Shipping LTD, a non-vessel operating common carrier, to pay a total of $76,361.41 to Goforth & Marti D/B/A GM Business Interiors. The amount comprises $74,000 in reparations and $2,361.41 in interest, which was due for payment April 5, 2023.

The FMC's decision was based on Goforth & Marti's complaint against HSIN, which alleged that HSIN violated the Shipping Act by imposing excessive fees.

GoForth & Marti dba GM Business Interiors v. HSIN Silk Road Shipping Limited

Goforth & Marti's claim centered on HSIN issuing a bill of lading for cargo transport. After providing an initial estimated arrival date of November 6, 2021, HSIN revised it to March 10, 2022, and imposed extra fees linked to unforeseen costs related to the pandemic.

The Commission verified serving the Notice to HSIN's address and through email, but HSIN didn't respond to the Complaint, which led to a default judgment. The FMC determined that HSIN violated the Shipping Act and caused actual harm to Goforth & Marti due to its violations.

AP Tariffs provides its clients with compliance trainings, which is available in English, Spanish, Korean, or Chinese. Get in touch with us via email to know more about AP Tariff's services. Schedule your free 15-minute Zoom-based meeting here.

NVOCCs Without a Tariff Risk License Revocation

Non-Vessel Operating Common Carriers (NVOCCs) that do not publish a tariff, contrary to Federal Maritime Commission regulations (46 C.F.R. §520.3(a)) will soon find their names on the FMC website.

In a press release dated August 31, 2023, the Federal Maritime Commission said it will begin posting the names of these erring NVOCCs and the public is advised that the NVOCCs listed are at risk of the Commission taking steps to revoke their license or terminate their registration.

The initial list has 16 NVOCCs that do not have a tariff. The FMC requires all NVOCCs operating in the U.S. trades to publish a tariff (46 CFR § 520.3).

Atlantic Pacific Tariffs Inc. is currently the 5th largest tariff publisher for NVOCCs. It has partnered with various stakeholders in the industry to help more local and foreign companies become licensed and leverage their FMC licenses to get more advantageous contract rates directly from ocean carriers.

What sets AP Tariffs apart from other tariff publishers is the easy access it provides to clients for compliance trainings and consultations (up to 2 hours/month). This is a preventive measure to help customers avoid potential penalties that are now up to $14,149 per occurrence.

Email us today at info@aptariffs.com or schedule a free 15-minute meeting here to learn more about our tariff publication services.

Top 5 Reasons to Become a Licensed NVOCC

Operating as an intermediary between shippers and ocean carriers can be a lucrative business. Companies providing shipping and logistics services to importers and exporters but do not operate their own ships are called Non-Vessel Operating Common Carriers (NVOCCs). While there is no exact number because there is no central database, it is estimated that there are a significant number of unlicensed NVOCCs operating in the U.S. Atlantic Pacific Tariffs Inc. (AP Tariffs) joins hands with the U.S. Federal Maritime Commission in encouraging NVOCCs to get licensed. Here are the top 5 reasons why it is better to become a licensed NVOCC: 1. An FMC license provides credibility and legitimacy to the business. This can be important when dealing with customers, partners, and other stakeholders who may require proof of compliance. 2. Licensed NVOCCs typically receive better rates from ocean carriers, which is crucial for success in this highly competitive industry. 3. Licensed NVOCCs have access to certain legal protections because they can issue their own bills of lading, which comes in handy in the event of disputes or claims. 4. The FMC has the authority to impose fines and penalties on unlicensed NVOCCs. Not knowing you violated a rule can get you fined as much as $14,149 per occurrence! 5. The FMC can issue cease and desist orders on unlicensed NVOCCs and this can disrupt business operations and damage the company's reputation. In summary, being a licensed NVOCC provides a range of advantages over being an unlicensed NVOCC, including credibility, flexibility in negotiating rates, legal protections, and enhanced reputation. AP Tariffs will help you get your license so you can have more opportunities for your business! Email us today at info@aptariffs.com or schedule a 15-minute meeting here!