Sinicway International Logistics Ltd. Possible Violations of Sections 10(A)(1) and 10(B)(2) of the Shipping Act of 1984; Order of Investigation and Hearing, 52344-52345 [2010-21172]

Agencies

• Federal Maritime Commission

[Federal Register Volume 75, Number 164 (Wednesday, August 25, 2010)]
[Notices]
[Pages 52344-52345]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-21172]


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FEDERAL MARITIME COMMISSION

[Docket No. 10-09]


Sinicway International Logistics Ltd. Possible Violations of 
Sections 10(A)(1) and 10(B)(2) of the Shipping Act of 1984; Order of 
Investigation and Hearing

    Sinicway International Logistics Ltd. (Sinicway) is a company based 
in the People's Republic of China, providing service as a non-vessel-
operating common carrier (NVOCC). Sinicway registered with the FMC as a 
foreign-based NVOCC in April 2009. Sinicway's reported address is 910 
The Panorama, 53 Huangpu Road, Shanghai, PRC 200080.
    Sinicway currently holds itself out as a NVOCC pursuant to its 
automated tariff No. 022155-001. Its tariff is maintained by 
Distribution Publications, Inc., and is published electronically at 
https://www.dpiusa.com. Sinicway currently maintains a NVOCC bond with 
Navigators Insurance Company, 6 International Drive, Rye Brook, NY 
10573.
    It appears that after registering with the FMC in April 2009, 
Sinicway originated and substantially participated in an ongoing 
practice of misdescribing cargo to the transporting ocean common 
carrier. With respect to those shipments apparently misdescribed, 
Sinicway was identified as the shipper signatory to various service 
contracts with ocean common carriers \1\ and as the person for whose 
account the transportation was being provided. Contemporaneous 
documentation such as the commercial invoice or the NVOCC house bill of 
lading reflect that shipments declared to the vessel operator as 
``bedding'' or ``household goods'' actually were loaded with garments 
or with miscellaneous other commodities. Due to the difference between 
the rate Sinicway paid to ship the misdescribed goods and the rate at 
which the cargo should have moved under the various service contracts 
used by Sinicway, it appears that Sinicway obtained lower than 
applicable rates for these shipments, in violation of section 10(a)(1) 
of the Shipping Act.
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    \1\ As relevant herein, these contracts include, but are not 
limited to: OOCL SC PE094178, OOCL SC PE104178, 
MOL SC 4199876A09, MOL SC 4199896A10.

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[[Page 52345]]

    It also appears that for some of these same shipments, Sinicway 
acted as a common carrier in relation to its NVOCC customers and issued 
its own NVOCC bill of lading. The electronic tariff published by 
Sinicway appears to indicate that only Cargo NOS rates were in effect 
since July 17, 2009. However, as indicated by Sinicway's invoices, the 
rate assessed by Sinicway to its NVOCC customers appears to differ 
substantially from its published Cargo NOS rates. Accordingly, it 
appears that Sinicway provided service that was not in accordance with 
its published tariff, in violation of 10(b)(2) of the Shipping Act.
    Now therefore, it is ordered, That pursuant to sections 10, 11, and 
13 of the Shipping Act, 46 U.S.C. 41102, 41104, and 41107-41109, an 
investigation is instituted to determine:
    (1) Whether Sinicway International Logistics Ltd. violated section 
10(a)(1) of the Shipping Act by obtaining transportation at less than 
the rates and charges otherwise applicable by an unjust or unfair 
device or means;
    (2) Whether Sinicway International Logistics Ltd. violated section 
10(b)(2) of the Shipping Act by providing service other than at the 
rates, charges, and classifications set forth in its published NVOCC 
tariff or applicable NSA;
    (3) Whether, in the event violations of sections 10(a)(1), and 
10(b)(2) of the Shipping Act are found, civil penalties should be 
assessed against Sinicway International Logistics Ltd. and, if so, the 
amount of penalties to be assessed;
    (4) Whether, in the event violations of section 10(b)(2) of the 
Shipping Act are found, the tariff(s) of Sinicway International 
Logistics Ltd. should be suspended; and
    (5) 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 Sinicway International Logistics Ltd. 
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, DC 20573, in accordance with Rule 118 
of 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 August 22, 2011 and the 
final decision of the Commission shall be issued by December 20, 2011.

    By the Commission.
Karen V. Gregory,
Secretary.
[FR Doc. 2010-21172 Filed 8-24-10; 8:45 am]
BILLING CODE 6730-01-P