The Federal Maritime Commission rejected a complaint by A/S Ivarans Rederi against the Brazil-U.S. shipping revenue pools and found that the Norwegian- flag operator is liable for penalties for carrying more than its share.
The complex case (Docket 86-9) has been delayed, partly because of the bankruptcy proceedings involving United States Lines Inc. and because of an arbitration body in Brazil.The ultimate issue, the commission said, was whether the pooling agreement itself should have been automatically suspended when a major carrier failed to make its required sailings.
Ivarans contended the agreement should have been suspended. The pool and the six carriers in it argued it should not have been suspended and the penalty provisions enforced.
Law Judge Norman D. Kline recommended against Ivarans.
The commission's final decision upheld Judge Kline after clarifying a technical point regarding evidence before the Brazilian arbitrator.
Ivarans originally accused the pool of unlawfully trying to collect $1,244,186 in over-carriage penalties for 1982.