[Federal Register Volume 67, Number 158 (Thursday, August 15, 2002)]
[Notices]
[Page 53353]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-20672]


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FEDERAL MARITIME COMMISSION

[Docket No. 02-10]


All Flags Forwarding Inc.--Possible Violations of Sections 
10(a)(1) and 19(d) of the Shipping Act of 1984, as Well as Section 
19(c) of the Shipping Act of 1984 as Amended by the Ocean Shipping 
Reform Act of 1998; Order of Investigation and Hearing

    Notice is given that on August 1, 2002, the Federal Maritime 
Commission served an Order of Investigation and Hearing on All Flags 
Forwarding, Inc. (``All Flags''). All Flags is a previously licensed 
ocean transportation intermediary (``OTI'') operating as a freight 
forwarder and a non-vessel-operating common carrier. Until May 12, 
2002, All Flags maintained an ocean freight forwarder bond and an NVOCC 
bond. Subsequent to the termination of All Flags' financial 
responsibility on May 12, 2002, its OTI license was automatically 
revoked on the same date pursuant to the Commission's regulations at 46 
CFR 515.26.
    It appears that between April 2, 1997 and August 17, 1999, All 
Flags and its principals knowingly and willfully collected freight 
forwarder compensation from at least three ocean common carriers on 
thousands of shipments without performing any of the required 
functions. This activity appears to have resulted from another NVOCC 
consistently listing All Flags and the name of its President in the 
freight forwarder box on oceans bills of lading for shipments processed 
entirely by that NVOCC's employees. Furthermore, between April 18, 1997 
and December 15, 1998, it appears that on at least twenty-one occasions 
All Flags and its principals knowingly and willfully shared a portion 
of the compensation with the NVOCC.
    This proceeding therefore seeks to determine (1) whether All Flags 
violated section 10(a)(1) of the Shipping Act of 1984 (``1984 Act'') 
and 46 CFR 510.22(a) by directly allowing another NVOCC to obtain ocean 
transportation at less than the rates and charges otherwise applicable 
by knowingly and willfully sharing a portion of its unwarranted freight 
forwarder compensation with that NVOCC; (2) whether All Flags violated 
section 19(d) of the 1984 Act and 19(e) of the 1984 Act as amended, as 
well as 46 CFR parts 510 and 515 as amended, by knowingly and willfully 
obtaining freight forwarder compensation without performing the 
services required for the receipt of such compensation; (3) whether, in 
the event violations of sections 10(a)(1), 19(d), and 19(e) of the 1984 
Act and/or 46 CFR parts 510 and 515 are found, civil penalties should 
be assessed and, if so the amount, and (4) whether, in the event 
violations are found, an appropriate cease and desist order should be 
issued.
    The full text of the Order may be viewed on the Commission's home 
page at http//www.fmc.gov/ or at the Office of the Secretary, Room 
1046, 800 N. Capitol Street, NW., Washington, DC. Any person may file a 
petition for leave to intervene in accordance with 46 CFR 502.72.

Bryant L. VanBrakle,
Secretary.
[FR Doc. 02-20672 Filed 8-14-02; 8:45 am]
BILLING CODE 6730-01-P