[Federal Register Volume 61, Number 20 (Tuesday, January 30, 1996)]
[Notices]
[Pages 3033-3035]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-1628]
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FEDERAL MARITIME COMMISSION
[Docket No. 96-01]
Low Cost Shipping, Inc., International Student Services, Eugene
Rogoway and Marie Arnold Order To Show Cause
This proceeding is instituted pursuant to sections 8, 11, 19 and 23
of the Shipping Act of 1984 (``1984 Act''), 46 U.S.C. app. 1707, 1710,
1718 and 1721, and the Federal Maritime Commission's (``Commission'')
regulations governing the tariffing and bonding of non-vessel-operating
common carriers, 46 C.F.R. part 514 and the licensing of ocean freight
forwarders, 46 C.F.R. part 510.
Low Cost Shipping, Inc. (``Low Cost'') is a company incorporated
under the laws of the State of Washington. It is managed and controlled
by Eugene Rogoway, General Manager of Low Cost and his wife, Marie
Arnold, President of Low Cost. Low Cost also advertises using the name
``International Student Services.''
It appears that between June 1, 1994 and September 26, 1995, Low
Cost held itself out to the public as a provider and forwarder of ocean
transportation for shipments of household goods, furniture and personal
effects in the foreign commerce of the United States. For at least
thirteen shipments known to the Commission, Low Cost collected ocean
freight from shippers. In six of these thirteen shipments, Low Cost, in
the capacity of a shipper, contracted with common carriers for the
ocean transportation.\1\ With respect to the remaining seven shipments,
Low Cost dispatched the shipments from the United States by processing
the documentation and booking the cargo.\2\
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Carrier\1\ Bill of lading No. Date Destination
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Keymost International Inc............... KM 6916...................... 7/16/94 Antwerp.
Yang Ming Line.......................... YMLUDENKARW0002R............. 8/28/94 Pakistan.
Shipco Transport Inc.................... SIT1294N3102................. 1/07/95 Sittard.
Italia Line............................. ITAUPO502663................. 4/14/95 South Africa.
Shipco Transport Inc.................... KAM0495N0907................. 4/21/95 Kampala.
Shipco Transport Inc.................... BRE0495N6201................. 5/08/95 Bremen.
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Carrier\2\ Bill of lading No. Date Destination
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Nantai Line Co., Ltd.................... NTLU SEAPTE0061.............. 1/31/95 South Africa.
Shipco Transport Inc.................... MEL0495N1101................. 4/07/95 Melbourne.
[[Page 3034]]
Shipco Transport Inc.................... KAO0495N1102................. 4/10/95 Kaohsiung.
Shipco Transport Inc.................... HAM0495N0903................. 4/18/95 Hamburg.
Shipco Transport Inc.................... FRA0495N0901................. 4/18/95 Frankfurt.
Shipco Transport Inc.................... ZUR0495N0905................. 4/19/95 Zurich.
Shipco Transport Inc.................... LSN0495N0908................. 4/23/95 London.
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Section 8(a) of the 1984 Act, 46 U.S.C. app. 1707(a), provides that
no common carrier may provide service in the United States foreign
trades unless the carrier first has filed a tariff with the Commission
showing all of its rates, charges and practices. Section 23(a) of the
1984 Act, 46 U.S.C. app. 1721(a), further provides that each non-
vessel-operating common carrier must furnish to the Commission a bond,
proof of insurance or other surety, inter alia, to insure the financial
responsibility of the carrier to pay any judgment for damages arising
from its transportation-related activities. According to the records
maintained by the Commission's Bureau of Tariffs, Certification and
Licensing, no tariff or bond has been filed with the Commission in the
name of Low Cost, International Student Services, Eugene Rogoway or
Marie Arnold. Therefore, it would appear that Low Cost, International
Student Services, Eugene Rogoway and Marie Arnold, by providing and
holding out to the public to provide transportation by water of cargo
for compensation and by contracting as a shipper in relation to a
common carrier for the carriage of cargo of other persons, have acted
as a non-vessel-operating common carrier without a tariff or bond on
file with the Commission, in violation of sections 8(a) and 23(a) of
the 1984 Act.
Section 19(a) of the 1984 Act, 46 U.S.C. app. 1718(a), provides
that no person may act as an ocean freight forwarder unless that person
has obtained a license from the Federal Maritime Commission. Section
3(19) of the 1984 Act, 46 U.S.C. app. 1702(19), defines an ocean
freight forwarder as a person in the United States that dispatches
shipments from the United States to a foreign country via common
carriers, books or otherwise arranges space for such shipments on
behalf of shippers and processes the documentation or performs related
activities incident to those shipments. In order to obtain an ocean
freight forwarder license, a forwarder must furnish to the Commission a
bond to insure the financial responsibility of the forwarder, and the
Commission must determine that the forwarder is qualified by experience
and character to render forwarding services. According to a review of
records maintained by the Commission's Bureau of Tariffs, Certification
and Licensing, no ocean freight forwarder license has been issued in
the name of Low Cost, International Student Services, Eugene Rogoway or
Marie Arnold. Therefore, it would appear that Low Cost, International
Student Services, Eugene Rogoway and Marie Arnold, by booking cargo and
processing documentation to dispatch shipments from the United States,
have acted as an ocean freight forwarder without a license issued by
the Commission, in violation of section 19(a) of the 1984 Act.
Now therefore, it is ordered That pursuant to section 11 of the
Shipping Act of 1984, Low Cost Shipping Inc., International Student
Services, Eugene Rogoway and Marie Arnold show cause why they should
not be found to have violated section 8(a) of the Shipping Act of 1984
by acting as a non-vessel-operating common carrier in six (6)
instances, specified above, without a tariff for such services on file
with the Commission;
It is further ordered That pursuant to section 11 of the Shipping
Act of 1984, Low Cost Shipping Inc., International Student Services,
Eugene Rogoway and Marie Arnold show cause why they should not be found
to have violated section 23(a) of the Shipping Act of 1984 by acting as
a non-vessel-operating common carrier in six (6) instances, specified
above, without a bond for such services on file with the Commission;
It is further ordered That pursuant to section 11 of the Shipping
Act of 1984, Low Cost Shipping Inc., International Student Services,
Eugene Rogoway and Marie Arnold show cause why they should not be found
to have violated section 19(a) of the Shipping Act of 1984 by acting as
an ocean freight forwarder in seven (7) instances, specified above,
without an ocean freight forwarder license issued by the Commission;
It is further ordered That Low Cost Shipping Inc., International
Student Services, Eugene Rogoway and Marie Arnold show cause why an
order should not be issued directing them to cease and desist from
providing or holding themselves out to provide transportation as common
carrier(s) and from obtaining from any common carrier transportation by
water of cargo of any other person between the United States and a
foreign country unless and until such time as Low Cost Shipping, Inc.,
International Student Services, Eugene Rogoway or Marie Arnold shall
have filed a tariff and bond for such service with the Commission;
It is further ordered That Low Cost Shipping Inc., International
Student Services, Eugene Rogoway and Marie Arnold show cause why an
order should not be issued directing them to cease and desist from
dispatching shipments from the United States to a foreign country via
common carriers, booking or otherwise arranging space for such
shipments and processing the documentation or performing related
activities incident to those shipments unless and until such time as
Low Cost Shipping, Inc., International Student Services, Eugene Rogoway
or Marie Arnold shall have obtained an ocean freight forwarder license
from the Commission.
It is further ordered That this proceeding is limited to the
submission of affidavits of facts and memoranda of law;
It is further ordered That any person having an interest and
desiring to intervene in this proceeding shall file a petition for
leave to intervene in accordance with Rule 72 of the Commission's Rules
of Practice and Procedure, 46 C.F.R. 502.72. Such petition shall be
accompanied by the petitioner's memorandum of law and affidavits of
fact, if any, and shall be filed no later than the day fixed below;
It is further ordered That Low Cost Shipping Inc., International
Student Services, Eugene Rogoway and Marie Arnold are named Respondents
in this proceeding. Affidavits of fact and memoranda of law shall be
filed by Respondents and any intervenors in support of Respondents no
later than February 12, 1996;
It is further ordered That the Commission's Bureau of Enforcement
be made a party to this proceeding;
It is further ordered That reply affidavits and memoranda of law
shall be filed by the Bureau of Enforcement and any intervenors in
opposition to Respondent no later than March 4, 1996;
It is further ordered That rebuttal affidavits and memoranda of law
shall
[[Page 3035]]
be filed by Respondents and intervenors in support no later than March
14, 1996;
It is further ordered That:
(a) Should any party believe that an evidentiary hearing is
required, that party must submit a request for such hearing together
with a statement setting forth in detail the facts to be proved, the
relevance of those facts to the issues in this proceeding, a
description of the evidence which would be adduced, and why such
evidence cannot be submitted by affidavit;
(b) Should any party believe that an oral argument is required,
that party must submit a request specifying the reasons therefore and
why argument by memorandum is inadequate to present the party's case;
and
(c) Any request for evidentiary hearing or oral argument shall be
filed no later than March 14, 1996;
It is further ordered That notice of this Order to Show Cause be
published in the Federal Register, and that a copy thereof be served
upon Respondents;
It is further ordered That all documents submitted by any party of
record in this proceeding shall be filed in accordance with Rule 118 of
the Commission's Rules of Practice and Procedure, 46 C.F.R. 502.118, as
well as being mailed directly to all parties of record;
Finally, it is ordered That pursuant to the terms of Rule 61 of the
Commission's Rules of Practice and Procedure, 46 C.F.R. 502.61, the
final decision of the Commission in this proceeding shall be issued by
July 22, 1996.
By the Commission.
Joseph C. Polking,
Secretary.
[FR Doc. 96-1628 Filed 1-29-96; 8:45 am]
BILLING CODE 6730-01-M