US Seizes North Korean Bulker for Violating Sanctions

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…As imports rising ahead of expected Tariffs hike
WMN..The U.S. Department of Justice has seized the bulk carrier Wise Honest, belonging to North Korea, for allegedly violating United States and United Nations sanctions by illicitly shipping coal from North Korea.
The authorities filed a civil forfeiture complaint against the 17,061-ton vessel that was also supposedly used to deliver heavy machinery to North Korea.
According to the documents filed in Manhattan federal court, from at least November 2016 through April 2018, the Wise Honest was used by Korea Songi Shipping Company, an affiliate of Songi Trading Company, to export coal from North Korea to foreign purchasers and import machinery to North Korea. On June 1, 2017, OFAC designated Songi Trading Company pursuant to Executive Order 13722 for its involvement in the sale, supply, or transfer of coal from North Korea. OFAC also determined that Songi Trading Company was a subordinate of the Korean People’s Army.
Mid-March 2018, the Wise Honest was loaded with coal in Nampo, North Korea. In early April 2018, foreign maritime authorities intercepted and detained the Wise Honest.
Despite its March 2018 voyage from North Korea, the Wise Honest had not broadcast an AIS signal since August 4, 2017.
Participants in the Korea Songi Scheme attempted to conceal the Wise Honest’s DPRK affiliation by falsely listing different countries for the Wise Honest’s nationality and the origin of the illicit coal in shipping documentation.
“Payments for maintenance, equipment, and improvements of the Wise Honest were made in U.S. dollars through unwitting U.S. banks. This conduct violates longstanding U.S. law and United Nations Security Council resolutions,” according to the Department of Justice.
“Today’s civil action is the first-ever seizure of a North Korean cargo vessel for violating international sanctions,” U.S. Attorney Berman said.
The Wise Honest is currently in the custody of the United States, having previously been seized pursuant to a warrant issued in the Southern District of New York, reports World Maritime News.
Meanwhile, imports at the major retail container ports in the US are expected to see unusually high levels the remainder of this spring and through the summer.
According to the National Retail Federation and Hackett Associates, the growth is expected amid rising retail sales and President Trump’s plans to both increase and broaden tariffs on goods from China.
“Much of this is driven by consumer demand but retailers are likely to resume stocking up merchandise before new tariffs can take effect,” Jonathan Gold, NRF Vice President for Supply Chain and Customs Policy, said.
“Tariff increases and new tariffs will mean higher costs for U.S. businesses, higher prices for American consumers and lost jobs for many American workers. We encourage the administration to stay focused on a trade agreement, and we hope the negotiations will get back on track. It would be unfortunate to undermine the progress that has been made with more tit-for-tat tariffs that only punish Americans,” Gold added.
The rush to bring merchandise into the country that was seen through much of last year slowed down after Trump postponed a tariff hike from January to March and then put it on hold indefinitely as trade talks with China showed signs of progress. But Trump said this week that 10 percent tariffs on USD 200 billion worth of Chinese goods will rise to 25 percent on Friday, and that he plans to impose new 25 percent tariffs on most remaining Chinese goods at an unspecified date.
U.S. ports covered by NRF’s Global Port Tracker handled 1.61 million TEUs in March, down 0.6 percent from February but up 4.4 percent year-over-year. April was estimated at 1.76 million TEU, up 7.7 percent year-over-year.
Imports during 2018 set a record of 21.8 million TEU, an increase of 6.2 percent over 2017’s previous record of 20.5 million TEU. The first half of 2019 is expected to total 10.7 million TEU, up 3.9 percent over the first half of 2018, reports Worlds Maritime News.