[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        
----------------------------------------------------------------------------------------------------------------
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