In an article titled "Crimes and punishment" in the June 2000 edition of Logistics , I reported that the U.S. Department of Transportation was cracking down on individuals and companies that intentionally violated hazardous-materials transportation safety regulations. That article mentioned a high-profile case in which an unidentified non–vessel-operating common carrier (NVOCC)—a consolidator of ocean freight shipments—allegedly engaged in a conspiracy to commit such crimes.

The investigation, initiated in 1997, included facilities in San Francisco, Calif., and Keasbey, N.J. Participants in the investigation included agents of the U.S. DOT's Office of the Inspector General (OIG) and the U.S. Coast Guard's Marine Safety Office. Michelle McVicker, assistant special agent in charge of OIG investigations in Los Angeles, compiled an overwhelming array of evidence that demonstrated that the NVOCC apparently willfully offered undeclared dangerous goods consignments secreted in ocean freight containers for carriage. Photographs seemed to verify the brazen intentional booking of non-declared dangerous cargoes, including flammable gases and liquids, oxidizers, and corrosive materials. They also documented that specific instructions on how and where to hide the dangerous goods had been issued.

In addition, Herbert G. Johnson, senior counsel for the Environmental Crimes Section of the U.S. Attorney's office, Northern District of California, documented numerous prosecutable instances of the same party's apparent willful non-compliance with regulations, which he believed created dangerous situations during marine transportation. He stated that the U.S. Department of Justice would seek criminal indictments in federal court against the alleged perpetrator.

That story continues to unfold. On Dec. 29, 2000, the U.S. Department of Justice's Northern District of California office issued a press release that identified the conspirators and provided more details on the case.

According to that release, Fleet Shipping Lines, a New Jersey corporation with offices in San Francisco, and four individuals employed in management positions in that company were indicted by a federal grand jury on 14 counts of illegally transporting hazardous materials in violation of multiple sections of Title 49, Code of Federal Regulations. The indictment cites at least 10 instances between October 1997 and February 1999 in which the company booked freight containers containing non-declared hazardous materials on vessels operated by at least three ocean carriers.

The charges included allegations that the NVOCC failed to provide shipping documents and to display required placards. The maximum statutory penalty for each count for Fleet Shipping Lines as a corporate defendant is five years' probation and a $500,000 fine. The maximum penalty for the individuals named in the indictments is five years in prison and a $250,000 fine.

The defendants were scheduled to make their initial appearance in federal court for arraignment on Jan. 23, 2001, in Oakland, Calif. Criminal charges related to the indictments have not yet been tried and as of this writing, no verdicts have been reported.

John V. Currie's firm, Currie Associates Inc., provides safety and compliance audits, consulting services, customized training manuals, and public and in-house seminars on hazardous-materials transportation management and regulatory compliance. He may be contacted at 1118 Bay Road, Lake George, NY 12845. Phone: (518) 761-0668. E-mail: mail@currieassociates.com. Web site: www.currieassociates.com.