[Federal Register Volume 64, Number 79 (Monday, April 26, 1999)]
[Notices]
[Page 20307]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-10351]
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FEDERAL MARITIME COMMISSION
[Docket No. 99-07]
A.P. Moller-Maersk Line, Possible Violations of Sections
10(b)(1), 10(b)(2), and 10(b)(4) of the Shipping Act of 1984; Order of
Investigation and Hearing
A.P. Moller-Maersk Line (``Maersk'') is a vessel-operating common
carrier headquartered in Copenhagen, Denmark. In the United States,
Maersk operates through Maersk, Inc., a wholly owned subsidiary. Maersk
offers worldwide container services with approximately 70 vessels and
offices in approximately 70 countries. As relevant here, Maersk
provides regular liner service between the United States and South
America and between the United States and points throughout the Far
East and Asia.
Based on evidence available to the Commission, it appears that
during the period from 1996 to 1998, Maersk was involved in malpractice
activities both in the South American as well as the Pacific Trades. In
particular, it appears that in the South American Trades, Maersk paid
rebates and made other freight concessions to several persons,
including Non-Vessel-Operating Common Carriers (``NVOCCs''). It appears
that Maersk engaged in such malpractices on hundreds of shipments over
a significant period of time. In the Pacific Trades, it appears that
Maersk collaborated with persons, including NVOCCs, in arrangements
involving commodity and measurement misdescriptions thereby allowing
those entities to obtain very substantial freight savings to which they
were not entitled, in many instances, by misuse of rules and practices
relating to equipment substitution.
Section 10(b)(1) of the 1984 Act, 46 U.S.C. app. 1709(b)(1),
prohibits a common carrier from charging, collecting or receiving
greater, less or different compensation for the transportation of
property than the rates and charges set forth in its tariffs or service
contracts. Section 10(b)(2) of the 1984 Act, 46 U.S.C. app. 1709(b)(2),
provides that no common carrier may rebate, refund or remit in any
manner, or by any device, any portion of its rates except in accordance
with its tariffs or service contracts. Section 10(b)(4) of the 1984
Act, 46 U.S.C. app. 1709(b)(4), prohibits any common carrier from
allowing any person by means of false billings, false classification,
false weighing, false report of weight, false measurement, or by any
other unjust or unfair device or means, to obtain ocean transportation
for property at less than the rates or charges that would otherwise be
applicable.
Under section 13 of 1984 Act, 46 U.S.C. app. 1712, a person is
subject to a civil penalty of not more than $25,000 for each violation
knowingly and willfully committed, and not more than $5,000 for other
violations.\1\ Section 13 further provides that a common carrier's
tariffs may be suspended for violations of sections 10(b)(1), 10(b)(2)
or 10(b)(4) for a period not to exceed one year.
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\1\ These penalties are increased 10 percent for any violations
occurring after November 7, 1996. See, Inflation Adjustment of Civil
Penalties, 61 Fed. Reg. 52704 (October 8, 1996).
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Now therefore, it is Ordered, That pursuant to sections 10, 11 and
13 of the 1984 Act, 46 U.S.C. app 1709, 1710, and 1712, an
investigation is instituted to determine:
(1) Whether Maersk violated section 10(b)(1) of the 1984 Act by
charging , demanding, collecting or receiving less or different
compensation for the transportation of property than the rates and
charges shown in its tariffs or service contracts;
(2) Whether Maersk violated section 10(b)(2) of the 1984 Act by
rebating, refunding or remitting a portion of its tariff or service
contract rates;
(3) Whether Maersk violated section 10(b)(4) of the 1984 Act by
allowing persons to obtain transportation at less than the rates and
charges otherwise applicable by an unjust or unfair device or means;
(4) Whether, in the event violations of sections 10(b)(1), 10(b)(2)
or 10(b)(4) of the 1984 Act are found, civil penalties should be
assessed against Maersk and, if so, the amount of penalties to be
assessed;
(5) Whether, in the event violations of sections 10(b)(1), 10(b)(2)
or 10(b)(4) of the 1984 Act are found, the tariff(s) of Maersk should
be suspended;
(6) Whether, in the event violations are found, an appropriate
cease and desist order should be issued.
It is further ordered, That a public hearing be held in this
proceeding and that this matter be assigned for hearing before an
Administrative Law Judge of the Commission's Office of Administrative
Law Judges at a date and place to be hereafter determined by the
Administrative Law Judge in compliance with Rule 61 of the Commission's
Rules of Practice and Procedure, 46 CFR 502.61. The hearing shall
include oral testimony and cross-examination in the discretion of the
Presiding Administrative Law Judge only after consideration has been
given by the parties and the Presiding Administrative Law Judge to the
use of alternative forms of dispute resolution, and upon a proper
showing that there are genuine issues of material fact that cannot be
resolved on the basis of sworn statements, affidavits, depositions, or
other documents or that the nature of the matters in issue is such that
an oral hearing and cross-examination are necessary for the development
of an adequate record;
It is Further Ordered, That A.P. Moller-Maersk Line is designated
Respondent in this proceeding;
It is Further Ordered, That the Commission's Bureau of Enforcement
is designated a party to this proceeding;
It is Further Ordered, That notice of this Order be published in
the Federal Register, and a copy be served on parties of record;
It is Further Ordered, That other persons having an interest in
participating in this proceeding may file petitions for leave to
intervene in accordance with Rule 72 of the Commission's Rules of
Practice and Procedure, 46 CFR 502.72;
It is Further Ordered, That all further notices, orders, and/or
decisions issued by or on behalf of the Commission in this proceeding,
including notice of the time and place of hearing or prehearing
conference, shall be served on parties of record;
It is Further Ordered, That all documents submitted by any party of
record in this proceeding shall be directed to the Secretary, Federal
Maritime Commission, Washington, D.C. 20573, in accordance with Rule
118 or the Commission's Rules of Practice and Procedure, 46 CFR
502.118, and shall be served on parties of record; and
It is Further Ordered, That in accordance with Rule 61 of the
Commission's Rules of Practice and Procedure, the initial decision of
the Administrative Law Judge shall be issued by April 20, 2000, and the
final decision of the Commission shall be issued by August 18, 2000.
By the Commission.
Bryant L. VanBrakle,
Secrtary.
[FR Doc. 99-10351 Filed 4-23-99; 8:45 am]
BILLING CODE 6730-01-M
