Seoul: South Korean shipping line Hyundai Merchant Marine has been fined $680,000 for anti-competition activity by the US Federal Maritime Commission (US FMC), reports Maritime Global Net. The leading liner company is one of several that are now required to make payments amounting to a total of $862,000 as part of agreements reached late last week.
HMM has been accused of violating section 10(b)(1) of the 1984 Shipping Act by "allowing shippers to obtain transportation for property at less than the rates or charges established by Hyundai in its tariffs or service contracts by permitting (a) use of its service contracts by persons who are neither signatories nor affiliates to those contracts, (b) unlawful equipment substitution, and (c) mis-description of commodities".
The liner company is also believed to have violated sections 10(b)(11) and 10(b)(12) of the1984 Act by entering into service contracts with, and providing transportation services to, an OTI that did not have a tariff, license or bond as required by the 1984 Act.
Although HMM has not admitted to any violations of the Act or the Commission's regulations, "in compromise of civil penalties arising from these allegations, Hyundai paid $680,000," the US FMC stated. [17/09/07]
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