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COMPROMISE AGREEMENT

FMC File No. 17201(E)

This Compromise Agreement is entered into between:

(1) the Federal Maritime Commission (Commission); and

(2) Trans Orient Express, Inc. (Respondent)

WHEREAS, the Commission is considering the initiation of an assessment proceeding

against Respondent for the recovery of civil penalties for alleged violations of section 10(a)(1)

of the Shipping Act of 1984, as amended (Shipping Act), 46 U.S.C. § 41102(a); and

WHEREAS, such proceeding would be based on Commission allegations that Respondent

engaged in certain practices in violation of the Shipping Act, to wit:

Between June 3, 2015 and April 21, 2016, Respondent

knowingly and willfully obtained ocean transportation for 

property at less than the rates or charges that would otherwise be 

applicable by the device or means of improperly utilizing rates 

limited to certain “named accounts” in Kawasaki Kisen Kaisha, 

Ltd. service contract no. SHA5071904.

WHEREAS, the Commission is authorized under section 13(c) of the Shipping Act, 46

U.S.C. § 41109 (a)-(b), and Subpart W of the Commission’s Rules of Practice and Procedure, 46

C.F.R. §§ 502.601 – 502.605, to compromise and collect civil penalties arising from the

alleged violations described above; and,

WHEREAS, Respondent has terminated the practices that are the basis of the alleged

violations set forth herein, and has committed to maintain measures designed to eliminate

such practices in the future; and,

WHEREAS, Respondent has cooperated in good faith and disclosed to the Commission

information, facts, and documents relevant to its transportation activities and practices giving

rise to the violations stated above; and,
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NOW THEREFORE, in consideration of the premises herein, and in compromise of all

civil penalties arising from the Commission’s investigation of Respondent for the alleged

violations described above, Respondent and the Commission hereby agree to the following

terms of compromise and settlement:

1. Respondents shall make payment to the Commission by bank cashier’s or certified 

check in the amount of $70,000.

2. This Compromise Agreement shall forever bar the commencement or institution of

any assessment proceeding or other claim for recovery of civil penalties from

Respondent, its officers, directors, or employees arising from the Commission’s

investigation of Respondent for the alleged violations set forth above occurring

between June 3, 2015 and April 21, 2016. 

3. It is expressly understood that this Compromise Agreement is not, and is not to be

construed as, an admission byRespondent to the alleged violations set forth above.

4. This Compromise Agreement is subject to approval by the Commission’s

Managing Director in accordance with 46 C.F.R. § 502.604.

Trans Orient Express, Inc.

Signature:

Printed Name: 

Title:

Date:
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APPROVAL AND ACCEPTANCE OF COMPROMISE AGREEMENT

FMC File No. 17201 (E)

The above Terms and Conditions and Amount of Consideration are hereby approved and

accepted:

By the Federal Maritime Commission:

______________________________________________

Brian L. Troiano, Director (Date)

Bureau of Enforcement

______________________________________________

Karen V. Gregory (Date)

Managing Director