[Federal Register Volume 76, Number 65 (Tuesday, April 5, 2011)]
[Notices]
[Pages 18761-18762]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-7999]
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FEDERAL MARITIME COMMISSION
[Docket No. 11-04]
Worldwide Logistics Co., Ltd.; Possible Violations of Sections
10(a)(1) and 10(b)(2) of the Shipping Act of 1984; Order of
Investigation and Hearing
Worldwide Logistics Co., Ltd. (Worldwide) is a company based in the
People's Republic of China, providing service as a non-vessel-operating
common carrier (NVOCC). Worldwide registered with the FMC as a foreign-
based NVOCC in September 2004. Worldwide's reported address is 14F-16F
Junjiang International Tower, No. 228 Ning Guo Road, Yangpu District,
Shanghai, PRC 200090. It is a part of the Worldwide Logistics Group,
said to be one of the leading integrated logistics service providers in
China.\1\
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\1\ http://www.worldwide-logistics.cn/en/ourservice.aspx?id=8.
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Worldwide currently holds itself out as an NVOCC pursuant to its
automated tariff No. 019194-001. Its tariff is maintained by
Distribution Publications, Inc., and is published electronically at
https://www.dpiusa.com. Worldwide currently maintains an NVOCC bond
with Navigators Insurance Company, 6 International Drive, Rye Brook, NY
10573.
It appears that Worldwide originated and substantially participated
in an ongoing practice of misdescribing cargo to the transporting ocean
common carrier since at least April 2008. With respect to those
shipments apparently misdescribed, Worldwide was identified as the
shipper signatory to various service contracts with ocean common
carriers \2\ 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 ``fabric'' or ``cotton fabric''
actually were loaded with garments or with other miscellaneous finished
textile goods. Due to the difference between the rate Worldwide paid to
ship the misdescribed goods and the rate at which the cargo should have
moved under the various service contracts used by Worldwide, it appears
that Worldwide obtained lower than applicable rates for these
shipments, in violation of section 10(a)(1) of the Shipping Act.
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\2\ As relevant herein, these contracts include, but are not
limited to: Evergreen S/C SC325398, SC34303, and
SC37000; Hanjin S/C AEF24208; K Line S/C
41033; Maersk S/C 275214; NYK S/C
SC0109828, SC0114261, and SC0114580; and OOCL S/
C PE084981.
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It also appears that for these same shipments, Worldwide acted as a
common carrier in relation to its NVOCC customers and issued its own
NVOCC bill of lading. Worldwide has maintained an electronic tariff
since September 17, 2004. However, as indicated by Worldwide's debit
notes, the rate assessed by Worldwide to its NVOCC customers appears to
differ substantially from its published rates. Accordingly, it appears
that Worldwide 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 Worldwide Logistics Co., 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 Worldwide Logistics Co., 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) or
10(b)(2) of the Shipping Act are found, civil penalties should be
assessed against Worldwide Logistics Co., Ltd. and, if so, the amount
of penalties to be assessed;
(4) whether, in the event violations of sections 10(a)(1) or
10(b)(2) of the Shipping Act are found, the tariff(s) of Worldwide
Logistics Co., 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
[[Page 18762]]
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 Worldwide Logistics Co., 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 2 of
the Commission's Rules of Practice and Procedure, 46 CFR 502.2
(formerly Sec. 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 March 29, 2012 and the
final decision of the Commission shall be issued by July 27, 2012.
By the Commission.
Karen V. Gregory,
Secretary.
[FR Doc. 2011-7999 Filed 4-4-11; 8:45 am]
BILLING CODE 6730-01-P