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2 NVOCCs Involved in Compromise Agreements Resulting in $2.3 Million FMC Penalties

Two Non-Vessel Operating Common Carriers (NVOCCs) and one Vessel Operating Common Carriers (VOCC) were involved in compromise agreements with the Federal Maritime Commission (FMC), yielding over $2.3 million in civil penalty payments. These agreements also require significant changes to business practices.


Here are the key details:


  1. CMA-CGM, S.A.:


  • Ocean common carrier CMA-CGM paid $1,975,000 to settle allegations that the company had overbroadly defined and applied its definition of merchant in a bill of lading to demand payment from a third party who should not have been billed.

  • CMA-CGM now limits the definition of “merchant” in its bills of lading to shippers, consignees, and those with a beneficial interest in the cargo.

  • In addition to paying civil penalties, CMA-CGM will also furnish restitution to impacted third parties in the form of refunds and waivers.

  • CMA-CGM has committed to comply with the Demurrage and Detention Billing Rule.


  1. Vanguard Logistics Services (USA), Inc.:


  • Ocean transportation intermediary (OTI) Vanguard paid $175,000 to resolve allegations that they knowingly accepted cargo from OTIs without required bonds, insurance, or sureties.

  • Vanguard will conduct an internal audit and provide updates to the FMC on progress and remedial actions.


  1. Shipco Transport, Inc.:


  • Shipco, another OTI, paid $155,000 to resolve three misconduct allegations.

  • These included accepting cargo from OTIs without proper sureties, allowing unlicensed OTIs to obtain transportation at reduced rates, and providing unauthorized access to service contracts.


Both Vanguard and Shipco committed to cooperating with the FMC in future investigations.


Avoid Penalties, Contact Us Now!


AP Tariffs offers personalized services, including Free FMC compliance consulting (free for clients up to 2 hours/month).

We aim to facilitate error-free NVOCC operations to avoid $14,608 per shipment FMC penalties. AP Tariffs offers Free Training Courses to address FMC compliance questions and conducts FMC Mock Audits of customers' Ocean Freight Documentation to identify potential errors. Our proactive approach equips customers to handle real FMC Audits penalty-free. 

Email us now at or schedule a free consultation! Meetings in Spanish, Mandarin and Korean languages also available.

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