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Company Fined $120,000 for Obtaining Transportation at Lower Rates

Prime Shipping International, Inc. dba Prime Agency, based in City of Industry, California, entered into a compromise agreement with the Federal Maritime Commission and paid a penalty of $120,000, to settle the allegation that it knowingly and willfully obtained transportation at less than applicable rates and charges by unlawfully accessing service contracts to which they were not a party.

The FMC alleged that between January 8, 2015 and June 27, 2015, Prime Shipping knowingly and willfully unlawfully accessed Kawasaki Kisen Kaisha, Ltd. service contracts to which it was not a party, thereby obtaining ocean transportation at less than the rates and charges that would otherwise apply.

During the same period, Prime Shipping allegedly provided transportation in the liner trade that was not in accordance with the rates and charges set forth in its published tariff or in any non-tariff alternative authorized by the Commission’s regulations.

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