A Florida-based non-vessel-operating common carrier (NVOCC) has paid $165,000 in civil penalties and agreed to accept and self-finance independent monitoring of their business practices as part of two separate compromise agreements reached with the Federal Maritime Commission over the past 18 months.
Double Ace Cargo Inc. (Double Ace) reached a compromise agreement with the FMC in June 2023 where it paid $115,000 in civil penalties to resolve allegations of violating the law at 46 U.S.C. § 41104(a)(11) by transporting shipments on behalf of entities that were not licensed NVOCCs, did not have bonds, and did not publish tariffs.
In reviewing and accepting the June 2023 compromise, the Commission ordered its Bureau of Enforcement, Investigations, and Compliance (BEIC) to re-examine the conduct of Double Ace after six months to ensure it was complying with all its relevant statutory and regulatory obligations.
A second investigation was completed in early 2024 and a compromise agreement was reached wherein Double Ace paid $50,000 in civil penalties to resolve alleged violations of 46 U.S.C. § 41104(a)(11) by transporting shipments on behalf of entities that were not licensed NVOCCs, did not have bonds, and did not publish tariffs. As part of the second compromise agreement, and in addition to the payment of a financial penalty, Double Ace agreed to accept and pay for an independent monitor for a12-month period ending May 2025. The independent monitor is providing monthly reports about Double Ace’s business practices and shipping agreements directly to the FMC BEIC Director.
The choice of the independent monitor was reviewed and approved by BEIC. Double Ace is bearing all financial costs for the independent monitor.
Requiring that a regulated entity accept and pay for ongoing monitoring by an independent company reporting directly to BEIC is new to previous compromise agreements. This arrangement allows BEIC to continue assessing the compliance and integrity of a company accused of wrongdoing while preserving the resources of the Bureau to conduct investigations of other companies.
Regulated entities are reminded that self-reporting violations is viewed favorably by the Commission and can help to mitigate consequences of non-compliant activity.
Penalty payments are deposited into the General Fund of the United States. The Federal Maritime Commission will receive no portion of the financial penalties collected from Double Ace.